I have no idea of Amex’s specific policies (and I hope that someone here can advise you about that) but why would a settlement and waiver be different than cancellation? Can you provide more details? Amex would only settle/waive if they perceived they would fare worse if they didn’t. If they settled because you filed suit, say, and made allegations of their wrongdoing (NOT saying your case) then they would have bought peace but would nonetheless likely feel screwed out of their money. If Amex settled for another reason that wasn’t genuinely their fault then I’d imagine they would perceive it the same way. Ditto if a third party got Amex to settle/waive by offering to pay your balance net of what they waived. Having to settle/waive in order to get paid something would still leave the creditor short, so not sure why it would put you in better stead than debt settlement with that creditor.
Starting Score (October 7, 2010): EQ: 698 TU: 709
COD/1099 versus settlement/purchase price adjustment may matter to you for tax purposes, but is economicalky a bad debt to Amex either way and still leaves them without $$. In fact, they might lose a bad debt deduction by agreeing to settlement/waiver depending on the reason. Can’t see how that would make them happier.
@Anonymouswrote:
Hey all was hoping you could provide some insight.
I understand if you burn AMEX there is essentially zero chance to get in for ten years.
Hypothetically say as part of a settlement they waive the entire balance. Would that still count as “burning” even though they agreed to waive it. It’s inportant to note it was waived, not cancelled like if you do debt settlement.
Appreciate it!
Well let me give you an example;
I burned Amex in my BK7 so I’m Blacklisted. Hopefully only 10 years cuz that’s the minimum and can go longer if the amount is substantial!
At the same time my DW accepted their offer to settle her acct for significantly less than what she owed (less than half). After that they gave her a letter confirming that she has “Fully” satisfied her debt/obligation with them. They still closed her account though.
Fast forward years later when her credit profile significantly improved, she got approved and taken back in by Amex. She now has 2 cards with them with a total of $21K limit.
So if that’s the scenario you’re asking about then I say as long as Amex considers your settlement to be “fully” satisfying the debt then the answer is No, you don’t get Blacklisted with them.
JR TX- How many year gap between settlement and new card with Amex?
@finfreewrote:
JR TX- How many year gap between settlement and new card with Amex?
DW settled in 2008. She got back in 2016. We actually didn’t even attempt much sooner as her profile was such in a bad shape during those times. We were more focused on cleaning up her credit and settling old debts. Even her approval for the Delta Gold was borderline with a 651 EX8 hence, the low $1K SL. Now sits at $10K and another BCE with $11K.
From the DPs here, 650 EX seems to be the borderline with amex with no new recent derogs.
Debt guy - it’s actually not Amex that’s “burned” when full payment isn’t made. And it’s not those of us who PIF regardless of the interest rate. The “burned” victim is the person with mid-to-high utilization, weak-to-fair credit, and a 24%+ interest rate on a running balance. That guy is paying 20%+ because of defaults (perhaps his own past defaults, but definitely defaults by others). That’s who really gets burned in all of this.
JR_TX- good for your wife! Sounds like you’ve both really gotten it together. Congrats!