Interesting situation. Need opinions from the experts... or people who know american Express

[Elcid89]

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@navigatethis12 wrote:

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@Elcid89 wrote:

Sounds shady. No lender can pull your tax return transcripts without a signed 4506T, and those expire - they do not remain active in perpetuity. If he hasn't already given them a recently signed 4506T, they have no ability to pull his tax returns on their own. Shutdown or no shutdown.

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Perhaps that's what the representative meant. Since the goverment is on holiday, they can't access the tax records even with the form, so the customer could send them to get around that.

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Possibly, although I personally would be surprised if they accepted it unless the return in question was signed off by one's CPA, etc. The entire reason for requesting the 4506T is that people can, and will, forge a tax return in order to avoid adverse action, so it buys AMEX nothing really to request one from a customer they are investigating to begin with.

[Crashem]

Just have a few comments:

1) I also think people are being overly pessimistic.  My guess is that AMEX is likely to just place hard limits on his charge cards and possibly reduce his blue sky card.  People's incomes change for lots of reasons that do not involve fraud/deception.  AMEX and pretty much every other card issuer doesn't want to be in the law enforcement business.  They won't care that he "lied" on application as long as he can pay his bill.

2) Good Job AMEX FR.  He spent 30k on 40k declared income and paying minimum payment.  Seems pretty obvious is this case, but I am still impressed by AMEX. They stopped the guy from really getting in more trouble while still getting a bunch of transaction fees.

As for what your friend should do, he should just take the FR and see what happens.  He will not get blacklisted for lying on his application as long as he pays his accounts.  Almost definitely will have limits placed or reduced.  He hopefully learns his lesson here to watch his credit card spending as he seems to be treating credit card limits as gifts that dont need to be paid back like the money he got from his dad.  Also, he should hopefully learn not to lie in the future.  If he had racked up bills so he could not afford to pay back, this could have been a much worse situation.

[navigatethis12]

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@Elcid89 wrote:

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@navigatethis12 wrote:

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@Elcid89 wrote:

Sounds shady. No lender can pull your tax return transcripts without a signed 4506T, and those expire - they do not remain active in perpetuity. If he hasn't already given them a recently signed 4506T, they have no ability to pull his tax returns on their own. Shutdown or no shutdown.

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Perhaps that's what the representative meant. Since the goverment is on holiday, they can't access the tax records even with the form, so the customer could send them to get around that.

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Possibly, although I personally would be surprised if they accepted it unless the return in question was signed off by one's CPA, etc. The entire reason for requesting the 4506T is that people can, and will, forge a tax return in order to avoid adverse action, so it buys AMEX nothing really to request one from a customer they are investigating to begin with.

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I never thought of that, but you're right. We'll just have to see what happens next.

[OnTheRebound]

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@ryanbush wrote:

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I'm earning 4.2% interest in my savings account here! Returns aren't that lousy everywhere

In all fairness, he got exactly what he deserved. It's easy to be foolish with money when it wasn't his to begin with. I think everything that needs to be said has been already.

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Can you let me in on your secret, I'm only getting 1% on my savings.... I need get on your plan!

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I'm interested as well. Is there a maximum balance that they pay 4.2% on? I searched and searched and the best I found was 6%. I got all excited until I read that 6% only applies to the first $5000.00. Doesn't do me any good at all. I ended up going with PenFed at 2% 5 yr certificate.

[ryanbush]

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@OnTheRebound wrote:

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@ryanbush wrote:

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I'm earning 4.2% interest in my savings account here! Returns aren't that lousy everywhere

In all fairness, he got exactly what he deserved. It's easy to be foolish with money when it wasn't his to begin with. I think everything that needs to be said has been already.

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Can you let me in on your secret, I'm only getting 1% on my savings.... I need get on your plan!

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I'm interested as well. Is there a maximum balance that they pay 4.2% on? I searched and searched and the best I found was 6%. I got all excited until I read that 6% only applies to the first $5000.00. Doesn't do me any good at all. I ended up going with PenFed at 2% 5 yr certificate.

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6% on 5k is still 300/year in free money.... where did you see this at?

[longtimelurker]

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@ryanbush wrote:

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I'm earning 4.2% interest in my savings account here! Returns aren't that lousy everywhere

In all fairness, he got exactly what he deserved. It's easy to be foolish with money when it wasn't his to begin with. I think everything that needs to be said has been already.

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Can you let me in on your secret, I'm only getting 1% on my savings.... I need get on your plan!

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I believe "here" refers to Australia.

[OnTheRebound]

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@ryanbush wrote:

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@OnTheRebound wrote:

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@ryanbush wrote:

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I'm earning 4.2% interest in my savings account here! Returns aren't that lousy everywhere

In all fairness, he got exactly what he deserved. It's easy to be foolish with money when it wasn't his to begin with. I think everything that needs to be said has been already.

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Can you let me in on your secret, I'm only getting 1% on my savings.... I need get on your plan!

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I'm interested as well. Is there a maximum balance that they pay 4.2% on? I searched and searched and the best I found was 6%. I got all excited until I read that 6% only applies to the first $5000.00. Doesn't do me any good at all. I ended up going with PenFed at 2% 5 yr certificate.

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6% on 5k is still 300/year in free money.... where did you see this at?

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It's Christian Community CU. I checked them again just now and they decreased the interest rate to 5% with a $2500 maximum. I believe you have to be a member or employee of a church organization to join. I'm not a church member but if it was 5% and no maximum I would join a church just for the benefits

[CreditScholar]

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@longtimelurker wrote:

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@ryanbush wrote:

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I'm earning 4.2% interest in my savings account here! Returns aren't that lousy everywhere

In all fairness, he got exactly what he deserved. It's easy to be foolish with money when it wasn't his to begin with. I think everything that needs to be said has been already.

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Can you let me in on your secret, I'm only getting 1% on my savings.... I need get on your plan!

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I believe "here" refers to Australia.

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+1. Unlike the US and Europe, economic conditions here have generally been much better here as we missed the recession.

There is no limit on deposits for the person who asked.

[SuperKirby]

Ughhh,... I want to move to Australia so bad (for other reasons, but the 4% on Savings is another icing on the cake)! 

[CreditScholar]

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@SuperKirby wrote:

Ughhh,... I want to move to Australia so bad (for other reasons, but the 4% on Savings is another icing on the cake)! 

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Any specific reasons?