@adavis425 wrote:
I ran across this article and it was really the first couple of paragraphs that caugt my attention. I'm pretty sure I've read here about folks trying to get the bonus with the Blue Sky and being told to pay the bad debt to get a new card. Interesting read.
http://finance.yahoo.com/news/amex-hit-112-5m-charges-204302820.html
To clarify, one of the findings that the CFPB had against Amex was that they did not clarify that a settled debt (paying a debt less then owed) could factor into future credit decisions by Amex. So applicants who had paid a previous debt for less then actually owed, would be denied unless they paid the full amount of the debt. As a settlement with the CFPB applicants who paid the remaining balance owed would be refunded for that amount plus interest. Other applicants who were denied but did not pay the remaining balance would be offered a pre approved card plus $100.
In future collection practices Amex will have to disclose that settling a debt for less then actually owed may be a factor in future credit decisions with Amex.
American Express: Platinum Charge, Optima, Business Gold, Delta Business Reserve, Business Cash, Business Plus
Barclays: Arrival+ WEMC
Capital One: Savor WEMC, Venture X Visa Infinite
Chase: Freedom U Visa Signature, CSR Visa Infinite
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity Visa Signature
Credit Union: Cash Back Visa Signature
FICO 08: Score decrease between 26-41 points after auto payoff (11.01.21) FICO as of 5.23, EX: 812 / EQ: 825 / TU: 815
