AMEX/American Express SUSPENDED my Accounts because of PAYPAL Transactions

[kuku4koco]

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@fltireguy wrote:
OP- why do you think your credit score will suffer? This should have no effect on it, whether the accounts remain open or they close them

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$18k could affect her utilization...

[MrDisco99]

Funny... I logged into my Citi account today and got a splash screen asking if I wanted to link my Citi cards with my Paypal account.

I get why Amex would red flag something like this, but I also get why someone who has no intention of getting around policy and is just trying to buy furniture would be surprised by such a drastic action.  And to find out at a business dinner is just adding insult to injury.  Like others have said, though, I think if you cooperate with the FR process and explain your situation to them they should be fine with letting you keep your accounts.

Also, don't buy furniture from Ashley.  I got a couch and loveseat from them 8 years ago and they have not held up well at all.  I could've gotten similar quality from Ikea at a fraction of the price.

[Anonymous]

As many people have already said, it is not an using Paypal with AMEX issue. I have had my AMEX 1 month and paid a $7K and a $3K paypal transaction to a company for items.  The problem is paying a family member using AMEX. I still feel comfortable using my AMEX on Paypal just not to relatives.

This is not an AMEX thing either, I once used my VISA card at my uncles bar/nightclub and had a hefty bill.  The credit card processor gave them hell and said it was against their TOS for a family member to use a credit card at a business owned by him.  After a long hold of funds they eventually let it go through. So it is more likely an industry thing, not an AMEX or Paypal thing. AMEX just probably pays attention to it more then others.

[trant3]

Sorry this happened. If you submit docs/4506t form and comply, your accounts will be reinstated. If not, both will be shut down. 

[Strogen]

This happened to me a little over a year ago. I had some Amex card and there was a 5K spend on one to get the bonus so I sent my friend the money using my paypal. 

Clear and obvious MS, I claimed it was to pay my friend for something related to our eBay store and then she claimed I was putting business purchases on my personal cards and they continued with the already happening cancellation and closure of all my accounts. 

She would not admit the flag was thrown for MS, but used what I said against me. Whatever I guess. All I know is, I cashed out a $400 or $500 home depot egift card literally the day before and used it. So screw em. I got what I wanted and was done with them anyway. Recently they let me back in, of course this time no paypal funny business. 

Pretty sure when you send money to someone it shows up on your amex statement with your partial name + paypal. Clearly they are wise to such. 

[SunriseEarth]

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@AvaMarie77 wrote:

I am in total shock right now. I am also extremley embarrased because my cards declined while at a business dinner!!

American Express suspended both of my Everday cards 15k limit and 3k limit because I bought used furniture from my UNCLE through PAYPAL. 

I had no idea that this was NOT ALLOWED!!! I didn't know that in no shape or form can you pay relatives through PAYPAL using AMEX. I so SAD right now. Had I known I would have never ever used AMEX. I would have just paid another way

Has this ever happend to anyone else?

American Express requested that I turn in my last two bank statements with the account I pay my AMEX bill with. I use this account for bills only, about $5k-7k deposited monthly just to pay my bills...What are they looking for? I tried to ask the rep but there is a HUGE language barrier every single time I call. 

Total shock right NOW! 

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It's been said a few times, but they clearly suspected MS (manufactured spend) and initiated the FR (financial review).   If you want to maintain your accounts, I recommend complying and riding it out; just be patient, as these things can take time.  As for what they're checking, maybe they want to get a better picture of your overall finances or to see if you made any cash deposits that would correspond with your purchase.  

On the surface, there is nothing wrong with your purchase and many other lenders probably wouldn't have given it a second glance.  Hopefully all goes well in the FR.  

[Anonymous]

 I am having a hard time understanding how AMEX knows who your related to to begin with?????? Can someone please enlighten me!

[Anonymous]

With their monthly soft pulls from accestry.com.

[Anonymous]

@ Oldman87.... WOW!! I was offended when AMEX requested my income from The Work Number! They have gone to far! Ridiculous......Thanks for your reply!

[Anonymous]

Hold on a second, I was only kidding.  

My guess is that they spot last names in the PayPal profile.