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Many members have made comments about AMEX may request a financial review. An FR means they may ask one to disclose financial documents. Are some cardholders inflating their incomes on applications in hopes to receive an initial high credit limit?
I don't see what's the big deal if one still have an excellent credit history. And if one still make the same salary or more that was disclosed on the credit application.
As I see it, Amex wants to verify your income in some cases.
Amex can ask for pay stubs or w - 2, or bank statement, but Amex wants you to give up your privacy and permit them to have your tax documentation, therefore to provide them with information that they do not need to verify income.
@wmarat wrote:As I see it, Amex wants to verify your income in some cases.
Amex can ask for pay stubs or w - 2, or bank statement, but Amex wants you to give up your privacy and permit them to have your tax documentation, therefore to provide them with information that they do not need to verify income.
Respectfully I disagree. Income can and often is misstated. Paystubs can be misleading and even forged, as can be w-2's. Only an official tax return filed with and paid against are true indications of income.
AMEX charge cards represent a different type of debt than traditional CC's. You have no option of minimum payments, therefore large CL's or charges represent a much higher degree of default risk if the income isn't in line, has changed or was misrepresented.
Just as in a mortgage, the lender has every right to request whatever form of income verification they may deem appropriate. The consumer is under no obligation to comply. The result will be decline of application or closure of account, but the consumer is in control of that scenario.
A $20,000 balance, due in full at statement, is very much a different debt than a $20,000 balance with a minimum payment of a few hundred dollars.
Once an individual undergoes an FR with tax returns, if the income is in line, then they are very likely to have less issues with AMEX from that point forward. If the account was approved merely on stated income, then AMEX is trusting the stated income. But at anytime they deem appropriate they want to verify the income, they are more than within their rights.
Ameex, or any other lender perfectly within their rights when they request FR, but the main arguement against Amex's FR is that if they need it they must do it before approval, but not after.
I went through very similar to FR with Addison and PenFedand had now problem with it, but it happened before final approval.
To aprove credit, to let a person to use this credit and out of blue to freeze account and demand FR, is hardly appropriate.
@wmarat wrote:Ameex, or any other lender perfectly within their rights when they request FR, but the main arguement against Amex's FR is that if they need it they must do it before approval, but not after.
I went through very similar to FR with Addison and PenFedand had now problem with it, but it happened before final approval.
To aprove credit, to let a person to use this credit and out of blue to freeze account and demand FR, is hardly appropriate.
I say its very appropriate. If Joe the cardholder goes out to make a single $20,000 purchase one month, AMEX has every right to freeze that account. AMEX also has the right to request an FR. They need to know if Joe the cardholder can afford to pay them back.
Then, what's the difference between credit card and loan?
@DI wrote:
@wmarat wrote:Ameex, or any other lender perfectly within their rights when they request FR, but the main arguement against Amex's FR is that if they need it they must do it before approval, but not after.
I went through very similar to FR with Addison and PenFedand had now problem with it, but it happened before final approval.
To aprove credit, to let a person to use this credit and out of blue to freeze account and demand FR, is hardly appropriate.
I say its very appropriate. If Joe the cardholder goes out to make a single $20,000 purchase one month, AMEX has every right to freeze that account. AMEX also has the right to request an FR. They need to know if Joe the cardholder can afford to pay them back.
Message Edited by DI on 12-13-2009 03:12 PM
@wmarat wrote:Then, what's the difference between credit card and loan?
@DI wrote:
@wmarat wrote:Ameex, or any other lender perfectly within their rights when they request FR, but the main arguement against Amex's FR is that if they need it they must do it before approval, but not after.
I went through very similar to FR with Addison and PenFedand had now problem with it, but it happened before final approval.
To aprove credit, to let a person to use this credit and out of blue to freeze account and demand FR, is hardly appropriate.
I say its very appropriate. If Joe the cardholder goes out to make a single $20,000 purchase one month, AMEX has every right to freeze that account. AMEX also has the right to request an FR. They need to know if Joe the cardholder can afford to pay them back.
Message Edited by DI on 12-13-2009 03:12 PM
The preset loan amount and terms are written in a contract. Everything is spelled out beforehand. The single credit card purchase isn't, and therefore the bank can stop the transaction as a precaution.
If I remember correctly all 17 of mine credit cards have pre set amount which called credit limit, and all terms are written in card holder agreement, which may qualify as contract and everything is spelled out clearly and all terms apply to any transaction made using credit card.
@DI wrote:
@wmarat wrote:Then, what's the difference between credit card and loan?
@DI wrote:
@wmarat wrote:Ameex, or any other lender perfectly within their rights when they request FR, but the main arguement against Amex's FR is that if they need it they must do it before approval, but not after.
I went through very similar to FR with Addison and PenFedand had now problem with it, but it happened before final approval.
To aprove credit, to let a person to use this credit and out of blue to freeze account and demand FR, is hardly appropriate.
I say its very appropriate. If Joe the cardholder goes out to make a single $20,000 purchase one month, AMEX has every right to freeze that account. AMEX also has the right to request an FR. They need to know if Joe the cardholder can afford to pay them back.
Message Edited by DI on 12-13-2009 03:12 PM
The preset loan amount and terms are written in a contract. Everything is spelled out beforehand. The single credit card purchase isn't, and therefore the bank can stop the transaction as a precaution.
Can you think about more convincing explanation?