AMEX Reinstatement?

[Sitalus]

Woke up this morning to an email from AMEX stating that both my Blue Cash Preferred and Gold cards had been closed. After calling, I learned that this happened as a result of four back-to-back returned payments on an authorized user's part. She accidentally made the payments using an old bank account, resulting in the returned payments.

I paid all balances in full and requested a reinstatement of both accounts. Was told that I would get an approval decision by mail in 7-10 business days. I opened my BCP back in 2018 and have had perfect payment history ever since, always paid my statement balance in full, and never had a returned payment before. My AU was carrying a balance on the Gold card at the time that the returned payments happened, but I have since paid it in full. 

What are the odds that they will reinstate my accounts? Can I try again if denied? The 7-10 business day letter is never a good indicator when applying for a new card, but I don't know how reinstatements really work and if you can be approved for one instantly. I feel like it would be remiss of them to close my accounts over a first-time thing when I've always had perfect payment history and never carried a large balance, but woe is me, I guess. 

[Remedios]

I really don't know what your chances are, Amex can be fairly reasonable if everything else checks out. 

A lot of lenders will close account after missed payment, and here you have two. 

From their perspective (and legal one, too) AU has no obligation to pay, it's all on you. Who pays is verbal agreement between you and AU, not legally binding agreement between AU and Amex. Also, because you carried balance (the fact AU made charges and was supposed to pay doesn't make a difference because of AU legal status) is making things worse. So just give it some time for them to review and fingers crossed it works out for you. 

[SouthJamaica]

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@Sitalus wrote:

Woke up this morning to an email from AMEX stating that both my Blue Cash Preferred and Gold cards had been closed. After calling, I learned that this happened as a result of four back-to-back returned payments on an authorized user's part. She accidentally made the payments using an old bank account, resulting in the returned payments.

I paid all balances in full and requested a reinstatement of both accounts. Was told that I would get an approval decision by mail in 7-10 business days. I opened my BCP back in 2018 and have had perfect payment history ever since, always paid my statement balance in full, and never had a returned payment before. My AU was carrying a balance on the Gold card at the time that the returned payments happened, but I have since paid it in full. 

What are the odds that they will reinstate my accounts? Can I try again if denied? The 7-10 business day letter is never a good indicator when applying for a new card, but I don't know how reinstatements really work and if you can be approved for one instantly. I feel like it would be remiss of them to close my accounts over a first-time thing when I've always had perfect payment history and never carried a large balance, but woe is me, I guess. 

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I'm hoping for the best. But since you asked, I don't think the odds are good.  I hope I'm wrong.

[Epiki71]

OP,

Wish you the best, this is the reason why I would never add an AU to any of my ACC.

[GreatLife]

My suggestion is to immediately request removal of the AU so creditor is comfortable during their manual account review that you responsibly resolved the immediate circumstance, and addressed any potential future risk to the lender. What more could they expect a card holder to do with an errant AU? Likely a rather common occurrence that lenders look for an appropriate response by the primary card holder. 

Best Wishes

[Remedios]

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@GreatLife wrote:

My suggestion is to immediately request removal of the AU so creditor is comfortable during their manual account review that you responsibly resolved the immediate circumstance, and addressed any potential future risk to the lender. What more could they expect a card holder to do with an errant AU? Likely a rather common occurrence that lenders look for an appropriate response by the primary card holder. 

Best Wishes

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Accounts are closed. 

[GreatLife]

Thanks. My attention to detail is clearly lacking.

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@Remedios wrote:

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@GreatLife wrote:

My suggestion is to immediately request removal of the AU so creditor is comfortable during their manual account review that you responsibly resolved the immediate circumstance, and addressed any potential future risk to the lender. What more could they expect a card holder to do with an errant AU? Likely a rather common occurrence that lenders look for an appropriate response by the primary card holder. 

Best Wishes

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Accounts are closed. 

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[ThomasJNewton]

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@GreatLife wrote:

My suggestion is to immediately request removal of the AU so creditor is comfortable during their manual account review that you responsibly resolved the immediate circumstance, and addressed any potential future risk to the lender. What more could they expect a card holder to do with an errant AU? Likely a rather common occurrence that lenders look for an appropriate response by the primary card holder.

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While it was already pointed out that the account was closed, so that is not possible, it also assigns blame to another party for whom there is no responsibility as far as American Express is concerned. While the authorized user may have made the bad payments, it was the original poster who was responsible to American Express. The role is Authorized User, not Additional Person Responsible for Payment, so the fact that the original poster allowed that person to charge and then pay directly, rather than charging, paying him and him paying American Express as he agreed to do is not the Authorized User's problem, it is his problem.

Even his statement that "my authorized user was carrying a balance" is incorrect. He was carrying a balance (whether it was caused by the authorized user or not). There is nothing wrong if he decides that he wants to carry a balance for someone else (I know lots of people who have done this on occasion), but he is the one carrying the balance and it is against his credit (as well as the Authorized User's) that it gets reported.

I am pointing this out not to be pendantic, but to make it clear to others reading this thread, not to make the same mistake. Only add an Authorized user if you are willing (and able) to pay all that user's charges and have them pay you directly, so that you are the person paying the creditor.

I do hope American Express decides in his favor and that others learn from his problem.

[Lou-natic]

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@Sitalus wrote:

Woke up this morning to an email from AMEX stating that both my Blue Cash Preferred and Gold cards had been closed. After calling, I learned that this happened as a result of four back-to-back returned payments on an authorized user's part. She accidentally made the payments using an old bank account, resulting in the returned payments.

I paid all balances in full and requested a reinstatement of both accounts. Was told that I would get an approval decision by mail in 7-10 business days. I opened my BCP back in 2018 and have had perfect payment history ever since, always paid my statement balance in full, and never had a returned payment before. My AU was carrying a balance on the Gold card at the time that the returned payments happened, but I have since paid it in full. 

What are the odds that they will reinstate my accounts? Can I try again if denied? The 7-10 business day letter is never a good indicator when applying for a new card, but I don't know how reinstatements really work and if you can be approved for one instantly. I feel like it would be remiss of them to close my accounts over a first-time thing when I've always had perfect payment history and never carried a large balance, but woe is me, I guess. 

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Just to clarify, if you have an AU carrying balances and making bad payments then you don't have perfect payment history and are in fact not always paying in full. This is 100% on you, not the AU and the cardmember agreement spells this all out.

I realize this sucks for you but you have to stay on top of these things yourself. Hopefully it all works out for you.

[jojo79]

To the OP (or anyone who has AU on their AMEX cards) - I'm just curious... did they email you after the first failed payment attempt? I would think they would have right away.

I have an AU on one my BoA CC but payments are handled by me. My AU is the sole user of the card and sends me whatever payment they are making and to my bank account and I make the payment. I have it set up to always automatically pay the minimum regardless, just in case. 

Good luck in your attempt to have the accounts re-opened.