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Regular Contributor
MontegoMack
Posts: 201
Registered: ‎01-21-2012
0

So ashamed and devastated

I would log on here very regularly. I got great advice, tips and suggestions as to how to build my credit score and improve my credit reports. I ended up going from lousy low CL cards to an AMEX PRG, Delta Gold, Chase Freedom and a BofA signature Visa. It wasn't easy but you all made it  seem simple. All I did was follow your collective advice. 

 

Then, my first AMEX bill came. I charged everything I could on it and racked up about a $3100 bill. My boyfriend and I are bi-coastal (CT and CA) and instead of having him pay for the airfare, I charged it. The bill came due and he sent in the payment. Or, at least, he thought he did. 

 

HIs credit union thought it was a fraudulent bill, perhaps because it was larger than what he usually pays and it's a new account. They froze the payment and flagged his account for potential fraudulent use. No big deal, right? Well, AMEX didn't get paid. They FR'ed me and ended up closing the account within 24 hours for nonpayment. I was devastated. Even with a letter from the CU saying that funds were available on the date of the attempted payment and a completed FR forms and subsequent payment of the bill, I got nothing but 2 pretty cards to look at, but not to use. It hasn't hit my CRs yet, but I imagine that I'll take quite a dive on my scores.

 

It's been 2 weeks. I'm just now bringing myself to log on, and even admit to ANYONE what has happened. I'm crushed. I guess it's only credit. It's only AMEX. 

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Valued Member
Link2k
Posts: 65
Registered: ‎04-17-2012
0

Re: So ashamed and devastated

Sorry to hear it.

 

Did your FR income match your reported income?

 

If so that is a crappy way to treat a customer acting in a perfectly reasonable way. 

Regular Contributor
MontegoMack
Posts: 201
Registered: ‎01-21-2012
0

Re: So ashamed and devastated

It did, but I just haven't heard ANYTHING. Nothing at all. 

It it possible to be THIS sad over this? Ugh. It just seems like it was a lot of work for a while to have the fruits of my credit management just disappear.

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Chase Freedom 9k
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Valued Contributor
trumpet-205
Posts: 2,299
Registered: ‎11-11-2010
0

Re: So ashamed and devastated

Did you put your BF on your AU to charge the ticket?

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Frequent Contributor
TheConductor
Posts: 491
Registered: ‎07-24-2012
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Re: So ashamed and devastated

That is a really unhappy turn of events.  :smileysad:

 

But I want to say, while feeling devastated is perfectly natural, you have done nothing here to feel ashamed of. You weren't spending beyond your means, you certainly weren't intending to defraud any of the parties involved.  You just fell victim to the twitchiness of banks and lenders about new accounts, and ended up with a perfect storm of two of them getting twitchy at once.

 

Have no shame about that, and recognize that even if this unfortunate event has undone some of the hard work you have done, you still have built an excellent credit profile and some great cards other than AmEx to show for it.

If I had to guess, I suspect the real reason the CU froze the payment is because they had pulled his credit when he joined with them and knew he did not have an American Express. So a giant payment to American Express is going to look a bit suspicious. Still, it sucks that AmEx closed you down even with a thorough explanation of the situation.

 

Did AmEx at least allow you to pay the balance before they closed the account, or are you saying it was an instant chargeoff? How much damage is done to your scores is going to be tied heavily to the final disposition of the account(s).

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Established Contributor
Cageym
Posts: 507
Registered: ‎07-31-2012
0

Re: So ashamed and devastated

I'm so sorry. If it were me I would be on the phone with that bank letting them have it. They just screwed everything you did. I know they would say it was to protect you but there is such a thing as e-mail or phone call to verify the charges.


What's in my wallet: Cap1 Venture $10K NFCU Sig Visa $25k Amex Zync NPSL Delta Gold $18k BCE $2k Citi Simplicity $5450 Priority Select Visa 5.9K Amazon Visa 4k CSP 5k
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Contributor
cam006
Posts: 133
Registered: ‎04-07-2008
0

Re: So ashamed and devastated

So sorry to hear about this happening to you. I would be crushed too.  I don't have any advice to give, but your myficonauts are here to support you! :smileysad:

7/11/08: EQ: 635, TU: 658, EX: 607
10/10: TU 634, EQ 626, Ex 626
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Established Contributor
flowfaster
Posts: 787
Registered: ‎08-30-2011
0

Re: So ashamed and devastated

It is not all bad.  It should not hit your credit report unless you are 30 days late.

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Moderator Emeritus
webhopper
Posts: 7,230
Registered: ‎09-16-2011
0

Re: So ashamed and devastated

[ Edited ]

MontegoMack wrote:

It did, but I just haven't heard ANYTHING. Nothing at all. 

It it possible to be THIS sad over this? Ugh. It just seems like it was a lot of work for a while to have the fruits of my credit management just disappear.


Its really not the end of the world.  I had an issue once... the good thing is that the issue occured 12 days before the bill was due. I used ACH to transfer funds (about $1800 from my NFCU share savings account to my State Farm Checking.  Once the funds showed in my available balance, I scheduled a payment through Amex website.

 

the payment won't be reported late unless you went past the 60 day requirement.

 

 

the funds transfer was reversed, due to the share savings account being a "non transaction account."    the first attempt for Amex to collect the payment was returned, the second attempt went through.  I had 2 returned item fees from state farm.   As soon as I realized that there would be an issue, I called Amex, and explained the issue, the CSR say no worries, the payment would be reattempted the next day, and there would only be a problem if it was not honored the third time it was attempted. In the meantime I got paid, and funds were available to honor the re-attempt.   I called state farm and asked them to reverse the returned item fees.  They did.  So I wasn't out any money and the moral of the story is that this would have been way worse had I been attempting a payment at the last minute. The payment would have ended up being late. I also learned that I cant transfer funds out of my shares account,  so I opened up NFCU e-checking which allows me to transfer funds.


Starting Score: 08/29/2011 TU 671 EQ 674
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Valued Member
Link2k
Posts: 65
Registered: ‎04-17-2012
0

Re: So ashamed and devastated


Cageym wrote:

I'm so sorry. If it were me I would be on the phone with that bank letting them have it. They just screwed everything you did. I know they would say it was to protect you but there is such a thing as e-mail or phone call to verify the charges.


I agree the bank should have notified them but this is something Amex should have corrected with input from the bank. All large companies know that banks implement fraud protections and that they even have their own internal errors and most companies will actually speak with your bank or request written verification from the bank itself to verify what happened. I would understand possibly not removing a late fee (still bad service) but closing the accounts seems a little bit extreme. I've even had CC companies remove fees that were complete errors on my part.

 

When a bank admits its error and offers to correct it there is not a whole lot more they can do if the other company won't work with them.

 

 


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