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AMEX CREDIT CARD DEBT

Member

AMEX CREDIT CARD DEBT

Hey Guys

 

I owe some money on some AMEX credit cards (1 personal, 2 business (which were under my name)

I havent made any payments in 2 years and AMEX has charged-off the accounts. I asked my attorney friend to fax them a letter and try to settle this issue.

 

When we did not hear back, I called them and now they are telling me they do not negotiate by letters or fax.

One has to call and negotiate (I thought was a bit unusual) Once the settlement is negotiated, then a letter can be drafted and signed.

The Indian guy on AMEX side did not understand how settlements worked but he gave me a lower offer than actually owed but still way higher than my offer. I owe about $10,000 and we offered to settle for $1500. His counter was $8000.

What  is the best way to resolve this? I do not have much money and these AMEX entries are really affecting my credit scrore.

 

Please advise

 

Thank you

Message 1 of 32
31 REPLIES
Community Leader
Valued Contributor

Re: AMEX CREDIT CARD DEBT

You would probably do better to have this moved to the Rebuilding forum for more answers.

 

Are these cards still within the SOL?  If they are, you won't get a great settlement offer because they can sue you for the whole amount.  What did your attorney advise?  Can you work out a payment plan with them?



EQ 679 EXP 700 TU 763
Message 2 of 32
Frequent Contributor

Re: AMEX CREDIT CARD DEBT

See if your agreement has JAMS arbitration. I used this with Amex and it worked out well.

 

I elected arbitration with them after contacted by their outside attorney. Communicated by email. I would get an email of someone in their legal dept. Stay off the phone with Amex and anyone else.

Message 3 of 32
Member

Re: AMEX CREDIT CARD DEBT

If I settle for the amounts they are asking for the guy said it will still show "Settled" on the CR instead of "Paid in Full"

 

What is the best way to get this debt and marked on the CR so it has the least effect on my score, if both sides can agree on the settlement amount?

 

I have read settling or paying in full would not help much. I am considering buying a house in the near future and cannot have bad entries in my report. Some people have had success with PFD with AMEX but I couldn't really get much info on how they did this.

 

Any advice on this will be greatly appreciated.

 

Thank you

Message 4 of 32
Super Contributor

Re: AMEX CREDIT CARD DEBT

To be honest, you should pay in full of $10k then they will give you an Optima card with $5k limit and after 12 months of good use you'll be able to obtain other credit products with Amex. It is the best way to get back into good side of Amex. I have done this personally and it helped me a lot to be on the good side of Amex. Ask Amex for Optima second chance program.

Message 5 of 32
Member

Re: AMEX CREDIT CARD DEBT

Honestly I could care less about getting another AMEX card or any of their other products.

 

My biggest concern is to get the Neg. off my CR.

Message 6 of 32
Super Contributor

Re: AMEX CREDIT CARD DEBT


motapa wrote:

Honestly I could care less about getting another AMEX card or any of their other products.

 

My biggest concern is to get the Neg. off my CR.


You can do what ever you think is best for you. But, when they give you new Optima card they will remove complete previous negative information on your credit report. Trust me. If you can afford to pay off the full amount, it is the best thing you can do to your self. Also the new Optima card will report your orginial memebership date and that will help you with you AAoA. 

Message 7 of 32
Member

Re: AMEX CREDIT CARD DEBT



You can do what ever you think is best for you. But, when they give you new Optima card they will remove complete previous negative information on your credit report. Trust me. If you can afford to pay off the full amount, it is the best thing you can do to your self. Also the new Optima card will report your orginial memebership date and that will help you with you AAoA. 


Ok, I was not aware that the Optima card will remove complete previous negative info. How do I get this card? Is there a specific number to call?

 

Also since I have 2 separate AMEX cards (blue personal and business) I am guessing it should not be an issue?

Message 8 of 32
Member

Re: AMEX CREDIT CARD DEBT

Message 9 of 32
Super Contributor

Re: AMEX CREDIT CARD DEBT


motapa wrote:

Ok, I was not aware that the Optima card will remove complete previous negative info. How do I get this card? Is there a specific number to call?

 

Also since I have 2 separate AMEX cards (blue personal and business) I am guessing it should not be an issue?


I really dont know what you are talking about 2 separate accounts. Your question was about $10k charged off account. You should call them and ask them about Amex Optima or Second Chance program. Nornally you pay full amount that is due. They will remove negative information. They will give you a new Opitma card with 50% of the limit you paid off on the old account. That is it. You are good to go with Amex. The Optima card will remian as it is. You'll not be able convert to a different card or obtain CLI. It will be a static card. After having Optima for 12 months they will be eligible for other cards.  If you dont need another card then you can ask for PFD and see if they delete the negative information. Search the forum or google for the Amex Opima card and you'll find lot of information on this program. Wish you all the best.

 

Message 10 of 32