This won't hurt my credit will it?

Discussion in 'American Express | Membership Rewards' started by michael21, Aug 22, 2012.  |  Print Topic

  1. michael21

    michael21 Silver Member

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    Amex wants me to give them permission to get my records from the IRS to confirm some stuff. I don't feel comfortable doing that and the rep said that if I don't, my accounts will most likely be closed. I have two charge cards and an SPG with $4,000 limit...So if they close them, my ratio won't be affected at all so that doesn't concern me. Is there anything else that it can do? I'm guessing I won't be able to apply for AMEX cards anymore?
     
  2. mrredskin
    Original Member

    mrredskin Gold Member

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    wanting to confirm you actually make what you told them you do?
     
  3. jbcarioca
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    jbcarioca Gold Member

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    American Express consistently closes accounts for which the account holder declines to provide additional information in an account review. If you do not want to provide the income data they ask for the better option is for you to close the account yourself rather than have them do it. That will be reported as "closed at account holder request" or something similar. Given what you said, I suggest closing the accounts now.

    Doing that will not preclude you from dealing with American Express in the future, but their records of individual account holder history are maintained perpetually (in the US. Some other countries do not permit that to be done) so if you should reapply they may ask for income verification data and may simply decline.

    I did that myself a few years ago and was solicited to open with them a few months later without any additional information. That happens, but probably not too often. BTW, I had been an American Express cardholder since 1969.
     
  4. edekba

    edekba Gold Member

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    the SPG isnt a charge card; so theoretically you'll available credit line(s) will be reduced by $4k. That "might" reduce your credit score.
     
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  5. michael21

    michael21 Silver Member

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    So you're saying it's better to close then myself rather than have them do it?
     
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  6. jbcarioca
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    jbcarioca Gold Member

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    Definitely. An involuntary close is a negative. Typically that is not in a score, but is often in screening criteria that are not scored. Close it yourself!
     
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  7. rookie10

    rookie10 Silver Member

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    Amex is a big player in the credit card market. I would give them what they ask and get it over with. It sucks you have to undergo a financial review. Do you know what triggered it? Taking a chance that you may never have another Amex card would sway me to comply.
     
  8. edekba

    edekba Gold Member

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    Amex loves to hold grudges.
     
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  9. desamo

    desamo Gold Member

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    Indeed. Lots of people get hit by this; I'm glad I haven't been.
     
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  10. marcwint55

    marcwint55 Gold Member

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    I went through that about three years ago. I don't think they even requested the records from the IRS as I sent them my tax returns, but I did give them permission to do so. I personally love AMEX and think it is well worth doing what they request. Amex is the one credit card company that truly sticks up for me when a problem occurs.
     
  11. marcwint55

    marcwint55 Gold Member

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    absolutely
     
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  12. BackSlash

    BackSlash Silver Member

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    Are you sure that this won't affect your utilization? My understanding of how the charge cards are reported is that the limit/HC (High Credit) is whatever the highest balance you've ever had on the card at one time. I remember reading that someone got dinged because they consistently charged $5K/cycle to their green card and it looked maxed out.

    Either way, you know what accounts you'll be left with if you close them, so you can figure out your new utilization regardless of how Amex reported. Also, consider your average account age.
     
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  13. desamo

    desamo Gold Member

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    Amex charge cards are NOT factored into utilization. I know because I studiously measured my utilization against FICO reports for years.
     
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  14. michael21

    michael21 Silver Member

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    My income won't match my application for a few reasons so what could happen when they see that? Would they retroactively decline me and close my account? Would they place a low monthly limit? If its A I better do it first. If it is B, then that's perfectly fine.
     
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  15. IDGflygirl
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    IDGflygirl Gold Member

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    hard to imagine that it wouldn't!
     
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  16. LETTERBOY
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    LETTERBOY Gold Member

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    What are the reasons why your income won't match your application? Did you put down false information on your application, or is there some other reason? If your income doesn't match your application, that may have something to do with why you got FR'ed.
     
  17. IDGflygirl
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    IDGflygirl Gold Member

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    The issue is that you may not have the choice to voluntarily close the a/c, as you won't know if 'B' is a possibility - beforehand!
     
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  18. desamo

    desamo Gold Member

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    Then they will almost certainly close your accounts.

    If, later, you happen not to pay any remaining balance off and file bankruptcy and you said you made more than you can account for on your tax returns, they may be able to get the amount due them excluded from bankruptcy.

    If that is a possibility, you're better off not disclosing your returns and closing the account yourself, frankly.

    One of the reasons I love Amex is their great fraud department, actually. They showed up in my office (about one of my coworkers) with the secret service one day. No joke. (This was a long time ago when I was working in the travel industry and it also involved the local police, and, later, the IRS Criminal Investigations Division, but Amex was the first to pick up the scent of the trail.)
     
  19. IDGflygirl
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    IDGflygirl Gold Member

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    this is certainly the case
     
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  20. michael21

    michael21 Silver Member

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    Bc long story short, I work for my father and the business is in his name and I'm a 'member' so the tax stuff was filed all in his name so when they look into my taxes, i won't show up at all so we agree I should close them myself?
     
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  21. desamo

    desamo Gold Member

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    We're I in your situation, yes.
     
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  22. daemon14

    daemon14 Gold Member

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    What was your charge card activity like to get an FR?

    The only AMEX I have is the DL Plat Amex, and I've been doing some reimbursable business spending for my job to hit the $25K since I'm going to be short on MQMs this year. I've probably run about $15K of office/business spend, so I'm hoping that doesn't trigger it (even though it's a credit card with a $13K limit, not a charge card)
     
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  23. mrredskin
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    mrredskin Gold Member

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    huh?
     
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  24. desamo

    desamo Gold Member

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    Secret Service was a part of the treasury (now DHS), and they do handle large-scale credit card fraud to this day. Coworker had some bizarro Amex scheme going on, and they came and interviewed him.
     
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  25. mrredskin
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    mrredskin Gold Member

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    didn't know their scope of work extended that far. interesting.
     
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