@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.
