topic So ashamed and devastated in Credit Cards

So ashamed and devastated

MontegoMack — Tue, 16 Oct 2012 19:47:22 GMT

I would log on here very regularly. I got great advice, tips and suggestions as to how to build my credit score and improve my credit reports. I ended up going from lousy low CL cards to an AMEX PRG, Delta Gold, Chase Freedom and a BofA signature Visa. It wasn't easy but you all made it seem simple. All I did was follow your collective advice.

Then, my first AMEX bill came. I charged everything I could on it and racked up about a $3100 bill. My boyfriend and I are bi-coastal (CT and CA) and instead of having him pay for the airfare, I charged it. The bill came due and he sent in the payment. Or, at least, he thought he did.

HIs credit union thought it was a fraudulent bill, perhaps because it was larger than what he usually pays and it's a new account. They froze the payment and flagged his account for potential fraudulent use. No big deal, right? Well, AMEX didn't get paid. They FR'ed me and ended up closing the account within 24 hours for nonpayment. I was devastated. Even with a letter from the CU saying that funds were available on the date of the attempted payment and a completed FR forms and subsequent payment of the bill, I got nothing but 2 pretty cards to look at, but not to use. It hasn't hit my CRs yet, but I imagine that I'll take quite a dive on my scores.

It's been 2 weeks. I'm just now bringing myself to log on, and even admit to ANYONE what has happened. I'm crushed. I guess it's only credit. It's only AMEX.

Re: So ashamed and devastated

Anonymous — Tue, 16 Oct 2012 19:52:01 GMT

Sorry to hear it.

Did your FR income match your reported income?

If so that is a crappy way to treat a customer acting in a perfectly reasonable way.

Re: So ashamed and devastated

MontegoMack — Tue, 16 Oct 2012 19:57:37 GMT

It did, but I just haven't heard ANYTHING. Nothing at all.

It it possible to be THIS sad over this? Ugh. It just seems like it was a lot of work for a while to have the fruits of my credit management just disappear.

Re: So ashamed and devastated

trumpet-205 — Tue, 16 Oct 2012 19:59:14 GMT

Did you put your BF on your AU to charge the ticket?

Re: So ashamed and devastated

TheConductor — Tue, 16 Oct 2012 20:00:19 GMT

That is a really unhappy turn of events.

But I want to say, while feeling devastated is perfectly natural, you have done nothing here to feel ashamed of. You weren't spending beyond your means, you certainly weren't intending to defraud any of the parties involved. You just fell victim to the twitchiness of banks and lenders about new accounts, and ended up with a perfect storm of two of them getting twitchy at once.

Have no shame about that, and recognize that even if this unfortunate event has undone some of the hard work you have done, you still have built an excellent credit profile and some great cards other than AmEx to show for it.

If I had to guess, I suspect the real reason the CU froze the payment is because they had pulled his credit when he joined with them and knew he did not have an American Express. So a giant payment to American Express is going to look a bit suspicious. Still, it sucks that AmEx closed you down even with a thorough explanation of the situation.

Did AmEx at least allow you to pay the balance before they closed the account, or are you saying it was an instant chargeoff? How much damage is done to your scores is going to be tied heavily to the final disposition of the account(s).

Re: So ashamed and devastated

Cageym — Tue, 16 Oct 2012 20:02:22 GMT

I'm so sorry. If it were me I would be on the phone with that bank letting them have it. They just screwed everything you did. I know they would say it was to protect you but there is such a thing as e-mail or phone call to verify the charges.

Re: So ashamed and devastated

cam006 — Tue, 16 Oct 2012 20:02:23 GMT

So sorry to hear about this happening to you. I would be crushed too. I don't have any advice to give, but your myficonauts are here to support you!

Re: So ashamed and devastated

flowfaster — Tue, 16 Oct 2012 20:05:56 GMT

It is not all bad. It should not hit your credit report unless you are 30 days late.

Re: So ashamed and devastated

webhopper — Tue, 16 Oct 2012 20:10:59 GMT

@MontegoMack wrote:
It did, but I just haven't heard ANYTHING. Nothing at all.
It it possible to be THIS sad over this? Ugh. It just seems like it was a lot of work for a while to have the fruits of my credit management just disappear.

Its really not the end of the world. I had an issue once... the good thing is that the issue occured 12 days before the bill was due. I used ACH to transfer funds (about $1800 from my NFCU share savings account to my State Farm Checking. Once the funds showed in my available balance, I scheduled a payment through Amex website.

the payment won't be reported late unless you went past the 60 day requirement.

the funds transfer was reversed, due to the share savings account being a "non transaction account." the first attempt for Amex to collect the payment was returned, the second attempt went through. I had 2 returned item fees from state farm. As soon as I realized that there would be an issue, I called Amex, and explained the issue, the CSR say no worries, the payment would be reattempted the next day, and there would only be a problem if it was not honored the third time it was attempted. In the meantime I got paid, and funds were available to honor the re-attempt. I called state farm and asked them to reverse the returned item fees. They did. So I wasn't out any money and the moral of the story is that this would have been way worse had I been attempting a payment at the last minute. The payment would have ended up being late. I also learned that I cant transfer funds out of my shares account, so I opened up NFCU e-checking which allows me to transfer funds.

Re: So ashamed and devastated

Anonymous — Tue, 16 Oct 2012 20:14:59 GMT

@Cageym wrote:
I'm so sorry. If it were me I would be on the phone with that bank letting them have it. They just screwed everything you did. I know they would say it was to protect you but there is such a thing as e-mail or phone call to verify the charges.

I agree the bank should have notified them but this is something Amex should have corrected with input from the bank. All large companies know that banks implement fraud protections and that they even have their own internal errors and most companies will actually speak with your bank or request written verification from the bank itself to verify what happened. I would understand possibly not removing a late fee (still bad service) but closing the accounts seems a little bit extreme. I've even had CC companies remove fees that were complete errors on my part.

When a bank admits its error and offers to correct it there is not a whole lot more they can do if the other company won't work with them.

Re: So ashamed and devastated

koalablue — Tue, 16 Oct 2012 20:48:02 GMT

Really sorry this happened to you. You did nothing wrong. It shouldn't hurt your credit report since it doesn't sound like its over 30 days late. Have you tried calling Amex? I would keep calling them till I spoke with someone in their executive office. Then at least you know you've tried everything. Best of luck.

Re: So ashamed and devastated

Anonymous — Tue, 16 Oct 2012 20:50:54 GMT

That really sucks. I'd punt that bank and take my money elsewheres.

Re: So ashamed and devastated

kese — Tue, 16 Oct 2012 21:00:27 GMT

I know it is a difficult situation. Please keep calling AMEX and the CU and never give up to explain your case. I am sure once they realize where the mistake lies they should reinstate your cards.

But please keep calling them and ask for seniour managers and i am sure you will get cards back.

Good luck

Re: So ashamed and devastated

maiden_girl — Tue, 16 Oct 2012 21:20:32 GMT

Sorry to hear.

You don't need to be or feel ashamed as it was not your fault. You need to contact the CU and Amex because it was not your fault. And the two companies need to right this for you.

Re: So ashamed and devastated

Anonymous — Tue, 16 Oct 2012 21:34:18 GMT

Ouch that does not sound good at all, sorry to hear that! How long did you have the American Express accounts for? Why would they ask for FR and then close, was your FR different than your stated application amount? I hate those two letters when talking about American Express, but atleast you still have two really good cards with really good limits, did you end up paying the bill in full? I do not think you need to be ashamed or devasted worst things in life happen, and this will be a small glitch for you soon to pass but I think I understand what you mean.

Re: So ashamed and devastated

Anonymous — Tue, 16 Oct 2012 21:53:21 GMT

If there was ever a situation that demands getting the executives at Amex involved, this is it. You did nothing wrong. This wasn't a situation that was in your control. Use the vast amount of collective knowledge from the members of this site to reach someone who can help you. Good luck!!

Re: So ashamed and devastated

Epcot — Tue, 16 Oct 2012 21:57:45 GMT

Wow, so sorry to hear. I agree with others that you should attempt to escalate it, after all it was not your fault and the CU has admitted to the error.

Re: So ashamed and devastated

webhopper — Tue, 16 Oct 2012 23:01:55 GMT

I agree completely... call amex again and escalate!

Re: So ashamed and devastated

LS2982 — Tue, 16 Oct 2012 23:17:00 GMT

I agree with others, keep calling AMEX executive offices.

Re: So ashamed and devastated

Anonymous — Wed, 17 Oct 2012 02:26:21 GMT

+1 Do email to executives or CEO. This may help you get some fair look on the issue. Good luck