topic Re: AMEX suspends charges within a week in Credit Cards

AMEX suspends charges within a week ---- UPDATE ----1/07/16 UPDATE

ojefferyo — Fri, 08 Jan 2016 01:18:32 GMT

OK so a buddy of mine recently got a PRG from AMEX. It was not instant but was only pending for a day or so. He asked me what to do and I told him to just wait it out. Next day it was approved. So I told him to go for the ED card which he did and that was instantly approved with a small limit of $500, pretty pathetic if you ask me. Why even approve someone with such a low limit. Anyhow, yesterday I was with him and we stopped to get gas. He tried to use the PRG at the pump and it said could not authorize. He tried again and same message. So he used his Arrival card instead and it went fine. We get to his place and he checks his account. Orange bar accross the top saying charges have been suspended and to call 1-800-678-0738. He called last night at 9:30 and they were already closed. I suggested to call the number on the back of the card to see what's going on and they lady said she couldn't help because another department was working on it already. When asked which department she kind of hesitated but reluctantly said the financial department. Looks like he's already getting a FR within the first week or so he's had the card. Only other time he's used it was to put gas in his car which is about $30 or so.

What could have triggered this FR all the sudden, his scores when he applied were 730+ all across (with the help of AU accounts), AMEX were the first cards that are in his name, Barcaly ($12.5k cl) was the second and Discover ($1.5K) lastly. He has nothing bad on his reports, fresh and clean. He recently just got the job he's in this year (first job ever), the beginning of Jan so he listed his income of 108K which is what he makes. Now if AMEX wants his tax return how are they going to pull that if it's his first year working? I feel pretty bad because I led the horse to the water and it turned out to be murky.

UPDATE:

So I got a chance to talk to my friend today. It went something like this.

me: So did you call AMEX back again?

him: (Mod Cut), if they don't want my business then (Mod Cut), if I wanted to scam them I would have done it the day I got my cards. Who the (Mod Cut) do they think they are trying to bully me around?

me: LOL yeah I guess you're right, money spends the same at any store whether it be an Arrival or a AMEX card.

him: AMEX thinks they are they only credit card issuers around town. They are just 1 out of a slew of them.

me: They will most likely send you something in the mail requesting some info and if you don't respond they will most likey close out your accounts.

him: I don't give a sh*t.

me: That's the spirit LOL

UPDATE #2

My buddy told me today that they called him today and asked him about his emplyment AND will be sending him a 4506T for a FR. He asked her why they are doing this and she said that their system monitors potential "issues" and since he was "given" a gold charge card they want to make sure he can pay them back because it's esentially a NPSL card. He said he kinda thought about complying for a breif minute and said the hell with them. He's gonna call her back and just tell them to close it out because because there are tons of other lenders out there.

I think it's silly to do this whole process AFTER the fact, if you questioned his ability to pay then why not do it from the beginning.

Re: AMEX suspends charges within a week

Anonymous — Thu, 17 Dec 2015 18:21:33 GMT

He hadn't used it at all before that?

Re: AMEX suspends charges within a week

CreditCuriosity — Thu, 17 Dec 2015 18:37:44 GMT

Actually re-read your whole post and being just AU's on accounts to having Barclay's at 10.5k plus discover and two Amex's all at once probably didn't help along with most likely being young from the sounds of it and a job paying 106-108k or whatever you said probably set more alarms off if he is young. All just guesses. Amex is probably just protecting their interests and hopefully they only require pay checks or the likes.. Best of luck to your friend

Re: AMEX suspends charges within a week

OmarGB9 — Thu, 17 Dec 2015 18:42:57 GMT

Maybe the fact that first charge was at a gas station set off some alarms? It shouldn't have, but sometimes fraud starts at gas stations. Not that he's committing fraud, but rather when a card number is comprised, gas stations seem to be somewhere it first happens.

Re: AMEX suspends charges within a week

Imperfectfuture — Thu, 17 Dec 2015 18:49:51 GMT

Yep. First fraud flag popped up at a seven eleven gas station that I had used several times. Didn't know it, but they froze the Freedom card. I had used amazon visa there with no problems for months (which I pointed out on the phone call).

Re: AMEX suspends charges within a week

DeeBee78 — Thu, 17 Dec 2015 18:51:44 GMT

@ojefferyo wrote:
OK so a buddy of mine recently got a PRG from AMEX. It was not instant but was only pending for a day or so. He asked me what to do and I told him to just wait it out. Next day it was approved. So I told him to go for the ED card which he did and that was instantly approved with a small limit of $500, pretty pathetic if you ask me. Why even approve someone with such a low limit. Anyhow, yesterday I was with him and we stopped to get gas. He tried to use the PRG at the pump and it said could not authorize. He tried again and same message. So he used his Arrival card instead and it went fine. We get to his place and he checks his account. Orange bar accross the top saying charges have been suspended and to call 1-800-678-0738. He called last night at 9:30 and they were already closed. I suggested to call the number on the back of the card to see what's going on and they lady said she couldn't help because another department was working on it already. When asked which department she kind of hesitated but reluctantly said the financial department. Looks like he's already getting a FR within the first week or so he's had the card. Only other time he's used it was to put gas in his car which is about $30 or so.

What could have triggered this FR all the sudden, his scores when he applied were 730+ all across (with the help of AU accounts), AMEX were the first cards that are in his name, Barcaly ($12.5k cl) was the second and Discover ($1.5K) lastly. He has nothing bad on his reports, fresh and clean. He recently just got the job he's in this year (first job ever), the beginning of Jan so he listed his income of 108K which is what he makes. Now if AMEX wants his tax return how are they going to pull that if it's his first year working? I feel pretty bad because I led the horse to the water and it turned out to be murky.

730+ scores, 108K income, and he only got approved for $500 on the ED? Amex doesn't trust him.

Re: AMEX suspends charges within a week

Anonymous — Thu, 17 Dec 2015 18:52:52 GMT

@Imperfectfuture wrote:
Yep. First fraud flag popped up at a seven eleven gas station that I had used several times. Didn't know it, but they froze the Freedom card. I had used amazon visa there with no problems for months (which I pointed out on the phone call).

Except it's not the fraud department that apparently is reviewing his account, it's the financial department. So I doubt it's related to the gas station use.

Re: AMEX suspends charges within a week

manyquestions — Thu, 17 Dec 2015 18:54:29 GMT

@ojefferyo wrote:
...got a PRG...go for the ED card... ...730+ all across (with the help of AU accounts)... AMEX were the first cards that are in his name...first job ever... listed his income of 108K...

I'd guess that those were the reasons.

Re: AMEX suspends charges within a week

Anonymous — Thu, 17 Dec 2015 19:05:18 GMT

Amex cancelled my green card few days ago. First cancelled account for 2 years. I have their card only 4 days and they cancelled it.

It's worst bank for me now. I think your friend will hate soon day when he decided apply for amex.

Re: AMEX suspends charges within a week

CreditCuriosity — Thu, 17 Dec 2015 19:13:01 GMT

@Anonymous wrote:
Amex cancelled my green card few days ago. First cancelled account for 2 years. I have their card only 4 days and they cancelled it.

It's worst bank for me now. I think your friend will hate soon day when he decided apply for amex.

All though unfortunate you were doing things against the Terms and Conditions of Amex.. Completely different story as you were using it for a cash advance or short term bridge loan charging it to your own company.. Two completely different things than OP

Re: AMEX suspends charges within a week

Anonymous — Thu, 17 Dec 2015 19:20:06 GMT

I think it's a question about attitude. I'm sure they would have found another reason.

I have read enough posts here on the forum to make sure that they stop charging and cancel accounts for any far-fetched reason. Stupid, unpredictable, unreliable and greedy lender.

Re: AMEX suspends charges within a week

rlx01 — Thu, 17 Dec 2015 19:22:26 GMT

This is standard operating procedure for new Amex accounts.

If he calls again now he'll be connected to fraud or whatever and they verify phone number, etc.

They let you charge a little bit then lock it so you have to call.

Not a great customer experience but it's understandable.

Re: AMEX suspends charges within a week

elim — Thu, 17 Dec 2015 19:22:42 GMT

won't know till he calls and speaks to financial. keep us posted.

Re: AMEX suspends charges within a week

ojefferyo — Thu, 17 Dec 2015 19:23:21 GMT

Well we'll see what happens and what they want.

Re: AMEX suspends charges within a week

Anonymous — Thu, 17 Dec 2015 19:28:14 GMT

Probably want income and/or ID verification. Very common for a first card from any lender. Going for a second card was a bad mistake for someone with only AU history, but it will probably be fine.

Re: AMEX suspends charges within a week

manyquestions — Thu, 17 Dec 2015 19:30:34 GMT

@ojefferyo wrote:
Now if AMEX wants his tax return how are they going to pull that if it's his first year working?

Hopefully they will allow him explain the situation on the phone and let him send in paystubs to verify his income. If they say no, and that they only take the IRS form, I would fax back the IRS form but I would also include a recent W2 in the fax along with a letter explaining why the tax returns won't show much income but that his job and income ares easily verifiable. Can't hurt.

Re: AMEX suspends charges within a week

Anonymous — Thu, 17 Dec 2015 19:31:07 GMT

@elim wrote:
won't know till he calls and speaks to financial. keep us posted.

Re: AMEX suspends charges within a week

DeeBee78 — Thu, 17 Dec 2015 19:33:46 GMT

@Anonymous wrote:
I think it's a question about attitude. I'm sure they would have found another reason.
I have read enough posts here on the forum to make sure that they stop charging and cancel accounts for any far-fetched reason. Stupid, unpredictable, unreliable and greedy lender.

Seeing as how they didn't shut down your account for any far-fetched reasons (instead shut it down for a clear violation of their Terms and Conditions) your opinion and bias should be taken as just that: opinion and bias, not fact.

Re: AMEX suspends charges within a week

UncleB — Thu, 17 Dec 2015 19:40:20 GMT

@Anonymous wrote:
Probably want income and/or ID verification. Very common for a first card from any lender. Going for a second card was a bad mistake for someone with onlyAU history, but it will probably be fine.

I truly hope this turns out OK (and I think it probably will) but I agree, if the only history was from AU cards, going for two at once was a bit aggressive and is most likely what caused the problem.

We'll never know for sure, but I suspect had he only gone for the PRG he would have been fine, and probably would have been approved a few months later for the ED with a 'real' credit line. To me, that's the real indicator (the $500 ED approval). The 'two-for-one' HP trick works well for those of us with thicker/older credit files, but for credit newbies I'm not sure I would recommend it.

Re: AMEX suspends charges within a week

someg33k — Thu, 17 Dec 2015 19:44:53 GMT

@Anonymous wrote:
Amex cancelled my green card few days ago. First cancelled account for 2 years. I have their card only 4 days and they cancelled it.

It's worst bank for me now. I think your friend will hate soon day when he decided apply for amex.

I'm not one to typically stick up for banks but all you are doing here is spreading misinformation due to your sour grapes that was your own fault.