topic Re: Amex closing accounts ! in Credit Cards

Amex closing accounts !

Anonymous — Thu, 12 May 2011 18:54:54 GMT

Hello All,

I have an active Fico reader and I do comment once a while if I have some information.

I have a unique situation... At least to me it is since I have been notified today that all (3) Amex accounts were shut down for no reason.

I paid them off last month and I was waiting for them to be reported to 0 and bang they close them.

I tried calling customer service and they explained that I have new public information which states I have collection against “WOOD LAW” for direct Tv.

Last week I did notify this was up on my report... I called DTV and they understood the issue and agreed to charge me about 100+ and knock off the complete collection.

And today Amex closed my accounts. I called the president’s office and a lady was kind enough to help me.

Do they usually re-instate the accounts?

I can’t and don’t want to lose my amex account it’s also the oldest account ...

Re: Amex closing accounts !

Anonymous — Thu, 12 May 2011 19:25:45 GMT

Not in my case. Let us know how it works out.

Re: Amex closing accounts !

Anonymous — Thu, 12 May 2011 20:02:47 GMT

what was your story?

Re: Amex closing accounts

DI — Thu, 12 May 2011 20:55:27 GMT

My account is still open. My credit reports are still pristine. Did they only close your account due to the adverse account reporting?

Re: Amex closing accounts !

DI — Thu, 12 May 2011 20:57:50 GMT

@Anonymous wrote:
Hello All,

I have an active Fico reader and I do comment once a while if I have some information.

I have a unique situation... At least to me it is since I have been notified today that all (3) Amex accounts were shut down for no reason.

I paid them off last month and I was waiting for them to be reported to 0 and bang they close them.

I tried calling customer service and they explained that I have new public information which states I have collection against “WOOD LAW” for direct Tv.

Last week I did notify this was up on my report... I called DTV and they understood the issue and agreed to charge me about 100+ and knock off the complete collection.

And today Amex closed my accounts. I called the president’s office and a lady was kind enough to help me.

Do they usually re-instate the accounts?

I can’t and don’t want to lose my amex account it’s also the oldest account ...

Highlighted in red is the reason for your sudden accounts closure

Re: Amex closing accounts !

Anonymous — Fri, 13 May 2011 00:14:40 GMT

I was up to date on Amex, but had several other late accounts on my report. They said no on reconsideration.

They are very agressive on dropping anyone who looks like a pending risk.

Re: Amex closing accounts !

steffiejoe — Fri, 13 May 2011 00:23:59 GMT

From what I know they watch your credit reports to see how you are doing with all of your accounts. I have a friend whose account was closed because of a charge off with another account. He called and they told him it did not matter if he was current with them.

Sorry this happened to you.

Re: Amex closing accounts !

haulingthescoreup — Fri, 13 May 2011 00:26:02 GMT

@Anonymous wrote:
Hello All,

I have an active Fico reader and I do comment once a while if I have some information.

I have a unique situation... At least to me it is since I have been notified today that all (3) Amex accounts were shut down for no reason.

I paid them off last month and I was waiting for them to be reported to 0 and bang they close them.

I tried calling customer service and they explained that I have new public information which states I have collection against “WOOD LAW” for direct Tv.

Last week I did notify this was up on my report... I called DTV and they understood the issue and agreed to charge me about 100+ and knock off the complete collection.

And today Amex closed my accounts. I called the president’s office and a lady was kind enough to help me.

Do they usually re-instate the accounts?

I can’t and don’t want to lose my amex account it’s also the oldest account ...

Get back with DirectTV and confirm (I think this is what you said, but I'm not sure) that they will cease reporting this on your reports, forever and ever. Get it in writing, on company letterhead if possible.

You do NOT want a collection on your reports. It will be there for 7 years, paid or not. You want a pay-for-delete: you pay them, and they cancel the reporting.

This is absolutely what triggered AmEx's AA.

Re: Amex closing accounts !

Anonymous — Fri, 13 May 2011 00:32:48 GMT

Thats exactly my approach.. PAY for Delete... no matter what.. I will have that in writting and make sure I will keep calling till they do that.

Just that AMex is funny... because now they cancel my accounts i have 90 days... and I think it takes about 30 days to report back...

Can I force Experian and other reports to fast track reporting?

Any help appreciated.

Re: Amex closing accounts !

smc733 — Fri, 13 May 2011 00:35:13 GMT

This comment isn't intended to anyone in this thread, but lets look at it through Amex's eyes (and if anyone has a reason to be bitter towards Amex, I'm one of them):

They have credit extended to you. They soft you (as they are allowed), and see other accounts go south, should they wait and lose money on you too? (Potentially, but very possible), or should they cut and run before they get hurt. It makes full on sense for them to do this. One or two lates is extreme, but a charge off certainly warrants AA in this case.

However, I've heard of people declaring bankruptcy, (not including Amex in the BK), and the account remains open, so YMMV.

Re: Amex closing accounts !

DI — Fri, 13 May 2011 01:10:42 GMT

I like AMEX!! If all banks dropped customers who become uncreditworthy, the TARP money would not have been needed.

Re: Amex closing accounts !

DI — Fri, 13 May 2011 01:18:00 GMT

If I pay all of my bills on time and avoid late payments and charge-offs then I deserve to carry an AMEX card. If someone fail to make payments on time and have accounts charge- off, they do not deserve to be in the same class as I. Therefore, AMEX should continue the practice.

Re: Amex closing accounts !

trumpet-205 — Fri, 13 May 2011 01:51:25 GMT

@DI wrote:
I like AMEX!! If all banks dropped customers who become uncreditworthy, the TARP money would not have been needed.

I think AMEX should inform cardholder in advance with reason before closing the card. According to OP, AMEX only informed closing account first hand. What can happen (and happened evry now and then) is that some lenders or collection agencies incorrectly report negative information.

Re: Amex closing accounts !

Anonymous — Fri, 13 May 2011 01:58:16 GMT

Super disagree with DI.. Amex confirmed that I had a great payment history but they have a system that got me knocked off... understand the fact that the collection is not a real collection but a confusion created when I moved and cancel the services,

Anyways.. I wouldnt think about this more.. i know I will get this knocked off my report and will get my Amex back !!

TARP funds and my amex closing has not a dime in common ///

Re: Amex closing accounts !

DI — Fri, 13 May 2011 02:10:57 GMT

@Anonymous wrote:
Super disagree with DI.. Amex confirmed that I had a great payment history but they have a system that got me knocked off... understand the fact that the collection is not a real collection but a confusion created when I moved and cancel the services,

Anyways.. I wouldnt think about this more.. i know I will get this knocked off my report and will get my Amex back !!

TARP funds and my amex closing has not a dime in common ///

Great to see you remain positive about it. I hope the collection get deleted and you get your AMEX accounts reopened. Goodluck,UMAIR!

Re: Amex closing accounts !

AndySoCal — Fri, 13 May 2011 02:23:03 GMT

TARP would never have been needed if lenders had not decided to make mortgage loans with stupid qualifing terms like no income verification, qualifying a person on variable rate loan on the teaser rate and no money down in some cases. As a result of these actions there are 300+ mortgage companies and the two largest lenders in the US are in conservatorship with the goverment. Most of the big banks have paid back all the TARP and other money due to [Edited]. At one time some people were blaming FICO saying the scores were flawed. Since FICO is predictive score I am not sure how FICO is supposed to figure out how or when a consumer is going to take out a loan that they cannot afford. I better stop at that.

One of the 5 things we don't talk about, ever, on the Forums is politics as per the Terms of Service.

Marinevietvet, myFICO moderator

Re: Amex closing accounts !

scottwagnon — Fri, 13 May 2011 03:54:25 GMT

+1. with socal.

i thought it was the stated practice of amex to NOT aa someone who was deliquent or derogatory on other accounts. from what i remember, 1) as long as you aren't late with amex 2) don't open new accounts and perhaps inquiries as well 3) don't charge tax bills on amex 4) go over the limit with amex, they would not aa you even if you are defaulting or else, -somewhere else.

Re: Amex closing accounts !

Anonymous — Fri, 13 May 2011 03:57:25 GMT

@scottwagnon wrote:
+1. with socal.

i thought it was the stated practice of amex to NOT aa someone who was deliquent or derogatory on other accounts. from what i remember, 1) as long as you aren't late with amex 2) don't open new accounts and perhaps inquiries as well 3) don't charge tax bills on amex 4) go over the limit with amex, they would not aa you even if you are defaulting or else, -somewhere else.

Doesn't that sound like Universal Default? I thought that UD was not allowed.

Re: Amex closing accounts !

Anonymous — Fri, 13 May 2011 11:17:20 GMT

SMC733 is absolutely right! Amex DID have a reason to close the OP's accounts. I've been notified last week by one of the top three banks in the U.S. (not AMEX) that they will be watching the credit files of their cardholders and "adjusting" credit limits as necessary. This is just good business. I think all of the contributors to this forum suffer CLDs, highers interest rates, and other credit denials when banks have huge charge-offs, so I'm not going to complain about their risk assessment policies.

Re: Amex closing accounts !

smc733 — Fri, 13 May 2011 11:21:38 GMT

I know BofA rolls back limits for lack of use, which is also understandable. Why should I extend you $10k+ in credit if you never touch it. When you suddenly do, I have legitimate cause to believe you may be in trouble.