topic Re: Amex Financial Review in Credit Cards

Amex Financial Review-UPDATE Pg 5

Creditdreamer — Thu, 29 Nov 2018 16:37:07 GMT

Wellllllll. A little update. On the ground at the airport I get notifications that my Amex cards have been removed from Apple Pay. Then I check my accounts right before we take off and it says that all 5 of my Amex cards have been “temporarily suspended”. I have plenty of available credit on other cards for the trip thankfully. But I finally got someone on the phone after we landed at Amex and they wanted to know what all the recent charges had been about and are requesting me to allow them to access my IRS transcripts from last year and also saying that they’ll go off of my income alone because my fiancé and I could break up meaning he wouldn’t be liable for any charges even though we have combined finances. Ughhhhh.

Sooooo, any advice on this guys? I think this is called an AR based on what I’ve seen on the forums.

They said it’ll take up to 2 weeks to complete and receive a determination. Meanwhile I’m in Seattle and wanted to use the Centurion lounge with my platinum on the way back in two days. Anyone know if this still works? I’m still a card holder. Just charging is temporarily suspended. The rest of it sucks but eh, I’m not stranded with no money or anything in Seattle so I’m good. More just bummed after my love letter to Amex. Lol.

Re: Amex Financial Review

Creditdreamer — Sat, 17 Nov 2018 09:09:47 GMT

I guess I’m more just irritated because if they didn’t think I’d be able to spend $12000 and pay it back, then why did they let me in the first place? Just cap my limit at $2000 and call it a day. Don’t let me spend $12000 and then suspend all my cards because I shouldn’t be spending $12000

Re: Amex Financial Review

UncleB — Sat, 17 Nov 2018 02:00:20 GMT

Hi @Creditdreamer, in order to help your question get addressed I've split it off into a new thread.

--UB

For reference, the previous thread can be found here: https://ficoforums.myfico.com/t5/Credit-Cards/UPDATE-Need-to-share-my-enthusiasm-A-love-letter-to-Amex/td-p/5407554

Re: Amex Financial Review

UncleB — Sat, 17 Nov 2018 02:03:20 GMT

@Creditdreamer wrote:
I guess I’m more just irritated because if they didn’t think I’d be able to spend $12000 and pay it back, then why did they let me in the first place? Just cap my limit at $2000 and call it a day. Don’t let me spend $12000 and then suspend all my cards because I shouldn’t be spending $12000

While none of us can say for certain, the likely trigger was the large ($8k+) purchase at Target, especially if that was out-of-character for your usual spending and income/resources.

Others who are more well-versed on Amex financial reviews (FR) than I am will be along shortly to offer suggestions as well.

Re: Amex Financial Review

ChargedUp — Sat, 17 Nov 2018 02:54:00 GMT

Would Amex be able to know that the purchase was all on gift cards? I'm thinking they suspect MS on your card.

Re: Amex Financial Review

Anonymous — Sat, 17 Nov 2018 03:09:51 GMT

@ChargedUp wrote:
Would Amex be able to know that the purchase was all on gift cards? I'm thinking they suspect MS on your card.

Yes. In all likelihood Target is providing Amex with Level III card data since card processors typically offer lower interchange fees in exchange for detailed transaction data.

Re: Amex Financial Review

Anonymous — Sat, 17 Nov 2018 03:31:23 GMT

@ChargedUp wrote:
Would Amex be able to know that the purchase was all on gift cards? I'm thinking they suspect MS on your card.

I doubt that is the reason. OP got their card with a 2k limit and within 2 days spent over 10k on the card. Seems pretty obvious what the issue is.

Re: Amex Financial Review

bourgogne — Sat, 17 Nov 2018 04:27:39 GMT

@Anonymous wrote:
@ChargedUp wrote:
Would Amex be able to know that the purchase was all on gift cards? I'm thinking they suspect MS on your card.
I doubt that is the reason. OP got their card with a 2k limit and within 2 days spent over 10k on the card. Seems pretty obvious what the issue is.

serious situation but your comment made me laugh, I mean what are people pretending not to know. with someone in the 600s that has trashed their credit before anything outside of swipe, cut and pay is a risk. the idea of balance transfers, cash advances, rapid spend, gift cards, making payments anything outside of transactional use and ones results may vary. good luck @Creditdreamer, I am afraid you might need it

Re: Amex Financial Review

Loquat — Sat, 17 Nov 2018 05:04:16 GMT

@UncleB wrote:
@Creditdreamer wrote:
I guess I’m more just irritated because if they didn’t think I’d be able to spend $12000 and pay it back, then why did they let me in the first place? Just cap my limit at $2000 and call it a day. Don’t let me spend $12000 and then suspend all my cards because I shouldn’t be spending $12000
While none of us can say for certain, the likely trigger was the large ($8k+) purchase at Target, especially if that was out-of-character for your usual spending and income/resources.

Others who are more well-versed on Amex financial reviews (FR) than I am will be along shortly to offer suggestions as well.

+1. OP, I agree with @UncleB. I’m venture to guess that the Target spend may be the trigger in this instance. Nonetheless I hope you can work through this and get your cards restore in some capacity if not fully reinstated. Good luck!

Re: Amex Financial Review

NRB525 — Sat, 17 Nov 2018 05:41:16 GMT

OP a FR is merely AMEX catching up their records of your spend moves outside their expectation.

Provide the 4506-T, and pay the card off, and all will be well. Your love letter to AMEX will have a new chapter, and be good to go for the long term.

Re: Amex Financial Review

Anonymous — Sat, 17 Nov 2018 06:14:05 GMT

@NRB525 wrote:
OP a FR is merely AMEX catching up their records of your spend moves outside their expectation.

Provide the 4506-T, and pay the card off, and all will be well. Your love letter to AMEX will have a new chapter, and be good to go for the long term.

I would be a little less certain, but it can certainly turn out fine. My question: were the Target gift cards just plain gift cards that can only be used at Target (rather than Visa/MC/Amex cards bought at Target)? If so, I agree that it's probably just the large spend and the 4506-T should help.

You might need to explain if they bring it up (and maybe prove) at some point that the gift cards were bought by the request of your company, and that the cards were distributed to others. Basically, the RAT teams are looking for possible MS and if they are just plain Target cards that you didn't keep, they should be OK.

Re: Amex Financial Review

CreditInspired — Sat, 17 Nov 2018 09:09:10 GMT

OP, first I want to say, I’m happy that you had other cards to use while you were traveling so as not to be stranded.

So Questions:
On 11/14 when your job reimbursed you, did you use all the funds to pay the Target charges off or did you just pay some of the outstanding balance?

Did you actually charge a total of $12K to the card in such a short period of time? What is the outstanding balance?

Your statement about if AmX didn’t think you could pay back 12K, why did they give you $12K. Wellllllllll, my CL is $25K and I can personally testify that if I charged my card to the hilt in a month, it is no way in blankety blank I could PIF. So that reasoning is not a sound one. AmX or any CCC does not expect a new card holder to go on a shopping spree. They don’t know your spending and repayment habits. I did put big spends on my card in the first 2 months but I made 3 payments in both of those months so AmX could see w/in each 30-day period, there was a 0 balance.

I think once the FR is over and everything is as you stated, you’ll be reinstated.

GL2U

Re: Amex Financial Review

staticvoidmain — Sat, 17 Nov 2018 09:46:11 GMT

While not set in stone, this is a good advice/guideline for avoiding FR:

How to Avoid a Financial Review from American Express

OP did tick a few boxes. I think it is dangerous to be critical of it and dismiss it merely as "myth" or coincidence. Just my 2¢.

Re: Amex Financial Review

UncleB — Sat, 17 Nov 2018 10:14:13 GMT

@staticvoidmain wrote:
While not set in stone, this is a good advice/guideline for avoiding FR:
How to Avoid a Financial Review from American Express

OP did tick a few boxes. I think it is dangerous to be critical of it and dismiss it merely as "myth" or coincidence. Just my 2¢.

At the risk of derailing this thread I will mention that I'm actually not a fan of the info provided on that link... there's quite a bit of speculation presented as fact, and even a couple of statements that are simply wrong.

In any case hopefully @Creditdreamer will make it through the FR and this can be a learning experience.

Re: Amex Financial Review

staticvoidmain — Sat, 17 Nov 2018 10:35:42 GMT

@UncleB wrote:
At the risk of derailing this thread I will mention that I'm actually not a fan of the info provided on that link... there's quite a bit of speculation presented as fact, and even a couple of statements that are simply wrong.

I have prefaced my response as it being a guide more than being a factual source. I know a lot of people dismiss it immediately, but it doesn't hurt to be cautious. A lot of info about Amex is wrong in many sources as well, like DoC, TPG, etc, including this forum, because Amex does not seem to have a hard rule on anything, but mostly just the "usual case", and that includes FR triggers.

Re: Amex Financial Review

AverageJoesCredit — Sat, 17 Nov 2018 12:10:04 GMT

Sorry Op, spending big, especially when one normally doesnt usually will trigger their computers so i hope all works out. If you get past this you should be good to go with Amex

Re: Amex Financial Review

Anonymous — Sat, 17 Nov 2018 13:14:15 GMT

@UncleB wrote:
@staticvoidmain wrote:
While not set in stone, this is a good advice/guideline for avoiding FR:
How to Avoid a Financial Review from American Express

OP did tick a few boxes. I think it is dangerous to be critical of it and dismiss it merely as "myth" or coincidence. Just my 2¢.

At the risk of derailing this thread I will mention that I'm actually not a fan of the info provided on that link... there's quite a bit of speculation presented as fact, and even a couple of statements that are simply wrong.

In any case hopefully @Creditdreamer will make it through the FR and this can be a learning experience.

You’re not derailing it at all. That link provides horrible information and should not be used as a guide by anyone.

Re: Amex Financial Review

redpat — Sat, 17 Nov 2018 13:32:51 GMT

Sorry OP, the gift cards IMO is the reason for FR. Also, what about the $662.48 fica/medicare taxes on the gross-up of the $100 that needs to be included the employees W-2 costing the company $1,324.96 in payroll taxes on the 8k bonuses.

Oh, I know it must get burried somewhere.....

Re: Amex Financial Review

UpperNwGuy — Sat, 17 Nov 2018 14:53:56 GMT

@redpat wrote:
Sorry OP, the gift cards IMO is the reason for FR. Also, what about the $662.48 fica/medicare taxes on the gross-up of the $100 that needs to be included the employees W-2 costing the company $1,324.96 in payroll taxes on the 8k bonuses.

Oh, I know it must get burried somewhere.....

Yep, the whole concept of buying gift cards instead of simply adding a one-time bonus to each employee's paycheck seems a bit odd. Augmenting an employee's wages outside the formal payroll system sounds like a potential tax problem.

Re: Amex Financial Review

Anonymous — Sat, 17 Nov 2018 15:50:26 GMT

Not to go further off the rails but in the case of gift cards instead of a bonus payment, my company has awarded hundreds of gift cards for various reasons over the years. I got one once for a bike shop in the amount of $600. The next paycheck, taxes were withheld from my check for the amount of the gift card, listed on my stub as a special payout of sorts. As long as the company holds back taxes to account for the value of the cards, there are no pitfalls - the pitfall would be in NOT doing so and just stopping by one’s desk, handing it over, and saying “congrats”...