AMEX suspends charges within a week ---- UPDATE ----1/07/16 UPDATE

[ojefferyo]

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@UncleB wrote:

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@Anonymous wrote:

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@UncleB wrote:

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@ojefferyo wrote:

Updated with my friends response on the original post. 

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+1

I don't blame your friend at all. 

While I really like my BCP, if they ever started giving me trouble I'd drop them in a heartbeat.  There are just too many good lenders out there - who actually want our business - to play games with one like this.  I mentioned earlier that going for both cards at once might (?) have driven this behavior, but that's still no excuse.  If there was an issue approving someone with a thin file for a second card, they should have simply declined the application.

For the record, I understand "business is business", but that works both ways. 

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I have to say I disagree.  From his response it doesn't even look he contacted them in any way so he has no idea why they suspended his accunt.  He has barely any of his own credit, applies for 2 cards back to back and can't understand why they might have some concerns?  He probaby would have to spend very little effort to restore his account but instead decides to take that approach. If he takes that approach with every lender he won't be getting much credit of his own.  

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He has contacted them already... this isn't just verification that he received his cards.

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@ojefferyo wrote:

We get to his place and he checks his account. Orange bar across the top saying charges have been suspended and to call 1-800-678-0738. He called last night at 9:30 and they were already closed. I suggested to call the number on the back of the card to see what's going on and they lady said she couldn't help because another department was working on it already. When asked which department she kind of hesitated but reluctantly said the financial department. Looks like he's already getting a FR within the first week or so he's had the card. Only other time he's used it was to put gas in his car which is about $30 or so.

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If we were just talking about a run-of-the-mill fraud block (for using the card at a gas pump, for example) I would agree, just make the call.

But in this case ojefferyo's friend has already called, and was told only someone from the financial dept. could help him, and we know what that most likely means.

As for calling back and dealing with the Amex financial dept, there's no 'right or wrong' answer here - to each his own - but in this case I would have done the same as the friend.  I agree, with a thin file Amex might have questions, but the time for those questions, IMO, is before you give someone a card, not when they are in a store trying to make a purchase.

If this were my friend, I would simply tell him to get a Venture or QS with Capital One, and move forward from there.  There are many lenders that won't require this level of shenanigans, even with a thin file.

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He tried Cap1 prequal and it came up with the Platinum and the Quicksiver One. I told him to just hold off for awhile and let the dust settle. 

[rlx01]

This thread is one of the most pointless things I've ever read.

When I received my PRG, I had the exact same thing happen. It was just verification.

When my wife received her SPG, the exact same thing happened. It was just verification.

Instead of a 4 page long thread, this whole thing could have been wrapped up with a 5 minute phone call.

And no, he couldn't have busted out in the first few days -- that's the entire point of this process. Once you go over $x in spend, they make you call.

Meh.

[elim]

[manyquestions]

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@ojefferyo wrote:

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@CreditCuriousity wrote:

Honestly Amex is just covering their arse... 

Person can either provide what Amex wants and most likely have accounts restored or not and they will remain closed.   Obviously it is his choice whether he wants to or not.

Not saying Amex is right, but not a good way to start out his credit journey with two cards opened and closed by lender that are only a month old?  I would try to work with them, but obviously he is choosing a different path.  They might just want pay stubs as we don't know this yet and what does that take a whole 5-10 minutes tops to fax or mail?  

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I think his mentality is that if you don't trust me from the beginning then why did you want to be my friend?

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I can understand his initial emotional response, but I'd advise him that with credit cards it's not about personal trust, it's just business.  I would suggest to first remove all emotion and then calmly call to see what they ask for.  I agree the odds are  they will want him to fill out the tax form but what if he can get by with less than that?  I think there is at least some chance that he may be able to keep his $500 limit cards by explaining that he is a recent graduate and as a result he won't have much income reported on his last last tax return.  For example, about a year or so ago in the FR thread of the  Flyertalk Amex forum there was a recent college graduate in a similar situation and I think he was able to send in something like a bank statement and keep his card open.  With $500 credit limits I think if your friend can verify that he has any income at all he might be able to keep the cards.  

[ojefferyo]

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@rlx01 wrote:
This thread is one of the most pointless things I've ever read.

When I received my PRG, I had the exact same thing happen. It was just verification.

When my wife received her SPG, the exact same thing happened. It was just verification.

Instead of a 4 page long thread, this whole thing could have been wrapped up with a 5 minute phone call.

And no, he couldn't have busted out in the first few days -- that's the entire point of this process. Once you go over $x in spend, they make you call.

Meh.

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I highly doubt anyone made you read through the whole 4 pages. If it didn't interest you then you could have very well closed the page out without having to read all 4.  

[Imperfectfuture]

Or, conversely, set up threads to display 50 posts, and it is all one page (works for mobile as well).

[gdale6]

Lets all remember to keep our posts respectful of one another, I thank you in advance for it.

http://ficoforums.myfico.com/t5/Credit-Cards/Forum-Etiquette/td-p/2905196

[Anonymous]

If AMEX had doubts about the lenders ability to pay they should ascertained the required data before they issued the card or cards. Suspending a clients account post issue because AMEX didn't do their job is poor business. It would be like going and buying a car driving off the lot and then the car lot repossessing your car the next day because they couldn't verify your address. Steps weren't taken on AMEX behalf and that is AMEX problem NOT the consumers.

Xace

[Imperfectfuture]

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@Anonymous wrote:

If AMEX had doubts about the lenders ability to pay they should ascertained the required data before they issued the card or cards. Suspending a clients account post issue because AMEX didn't do their job is poor business. It would be like going and buying a car driving off the lot and then the car lot repossessing your car the next day because they couldn't verify your address. Steps weren't taken on AMEX behalf and that is AMEX problem NOT the consumers.

Xace

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Which they actually used to do.  Drive off lot before financing in place, return car in two days.  Those dealerships tend to be out of business now, but some remain.

[Anonymous]

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@Anonymous wrote:

If AMEX had doubts about the lenders ability to pay they should ascertained the required data before they issued the card or cards. Suspending a clients account post issue because AMEX didn't do their job is poor business. It would be like going and buying a car driving off the lot and then the car lot repossessing your car the next day because they couldn't verify your address. Steps weren't taken on AMEX behalf and that is AMEX problem NOT the consumers.

Xace

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+1.

This is the way Comenity seems to have been doing business as well lately, issuing cards and then closing them down two or three weeks later.