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

[longtimelurker]

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@CreditCuriousity wrote:

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@Anonymous wrote:

I appreciate your praise for Amex.  Maybe you have a long good relationship with them. And I hope that it will continue.

But I have a slight suspicion that this partnership is unreliable and can end up with not your fault. What are you going to say when it happens?

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Spending some of my time to try to find out in the Terms and conditions of use to find your violation, but quite honestly having trouble find the verbage of what you did.  Although with that being said, the lender or any lender even if not mentioned in the t and C's have the right to cancel your card for any reason.  I am sure someone will dig up this information that I can't find.  Anyways, took this quote from another site about how Amex sees this and they watch it like a hawk.   Although some of this should be "common sense".  Why didn't you just do a Cash Advance?  Not saying this wouldn't of got your card cancelled either

"American Express is very hip to this game, by the way. Paypal purchases are always scrutinized by American Express. They’re scrutinized because it’s so easy to do what I’ve just described. Small purchases won’t likely gain anyone’s attention at American Express, but you can bet your bottom dollar that big purchases won’t go unnoticed.
American Express, once it has flagged your account, wants to know two things: one, are you essentially doing a cash advance or balance transfer? And, two, are you broke? Indeed, if you are doing these kinds of sham transactions, you’re likely strapped for cash. If you’re strapped for cash, and doing these kinds of deals, then you’re likely a high-risk customer to American Express. If you’re a high risk to American Express, it’s going to reduce your limit substantially or cancel your card altogether.
If you’re going to do these kinds of Paypal transactions, don’t use American Express to do it. They’re on top of the game when it comes to this stuff. Better still, just don’t do it at all. Indeed, this is not the credit environment in which to test the cards companies’ computer systems."

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Yes, I suspect ths isn't in the Terms and Conditions, more derived knowledge from lots of examples.    And while I agree that alex--- is well overdoing the angst, there is a difference between violating T&Cs and doing something that turns out to be considered bad.   I think Alex--- can at least sort of claim that he had no reliable way of knowing what he did was disapproved (even though Amex can of course close the card at any time)

[Anonymous]

Of course, if it was something that violates T&C, I  would never do it.  Indeed why apply for a credit card and - to close it?

So lender must includes it in T&C or prevents some actions or warns customer at least instead to close customer's account.

Yes, I agree with the lender's right  to close account for any reason if this don't have negative impact on customer credit report. 

Otherwise it will be unfair to customers.

[Anonymous]

I don't know how it will appear on my credit reports. Maybe another lender looking at my report, and will see it, and will think that I did something wrong and will not give me credit because of it.

If not for that, I would not worry.  But unfortunately, it can impact on credit report.

[redpat]

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@Anonymous wrote:

Of course, if it was something that violates T&C, I  would never do it.  Indeed why apply for a credit card and - to close it?

So lender must includes it in T&C or prevents some actions or warns customer at least instead to close customer's account.

Yes, I agree with the lender's right  to close account for any reason if this don't have negative impact on customer credit report. 

Otherwise it will be unfair to customers.

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Sometimes you have to use common sense.  Face it, you thought you had an angle and got caught.  Take some responsibility for your actions.  They didn't tell me just doesn't fly.

[Anonymous]

Could well show as "Closed by Credit Granter" and while that may feel bad the automated system would only deal with the account as closed unrelated to whether you closed it or the credit granter closed it. Seems to me as I read various posts on here many a poster has tried to minimize HPs to their credit reports and try's to open multiple accounts using the one HP. Also, seems to me that some have been successful. Whatever works.

[Anonymous]

Not to revive an old debate but this happened to me recently.  The lender has the right to close any CC when they feel like for whatever reason.  But I feel, they should inform the customer that there will be an ID verification within a time frame of opening a new card.  I had overpaid my card when the ID check got the card frozen.  I had to make multiple calls and send the fax thrice in order for them to be satisfied.  The money I overpaid got blocked and as such I had to cancel some important plans, for which I had intended to use the card.  This was a huge inconvenience. For the future, if anyone opens a new amex, please wait for a month before intending to use the card for any major plans/purchases.

[red259]

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@CreditCuriousity wrote:

Actually re-read your whole post and being just AU's on accounts to having Barclay's at 10.5k plus discover and two Amex's all at once probably didn't help along with most likely being young from the sounds of it and a job paying 106-108k or whatever you said probably set more alarms off if he is young.  All just guesses.   Amex is probably just protecting their interests and hopefully they only require pay checks or the likes.. Best of luck to your friend

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+1 I don't think the lender is acting unreasonably at all here. Your friend has no credit file other than AUs and he is seeking all this credit at once with a brand new job. Going for a lot of credit when first starting out is a mistake IMO and this is one of the reasons why I say that. Has for the $500 credit line I do not consider that insulting, since they don't know this guy and his credit profile doesn't do much to allay their concerns. Normally I would tell amex to shove off, but I have a thicker profile. If I were in your friend's position with a thin profile I'd cooperate with amex and maybe they will increase his credit line to boot. 

[CardsLifeLine]

Sad to hear about this ... I would suggest to submit the FR and be in good books rather ... This is frustrating but long run your friend will be appreciate this attempt in long run .. Good luck

[ojefferyo]

He says he doesn't care if AMEX will give him another card or not. He says that if they were unsure then they should have did all this FR thing from the beginning (before cards were given) as we don't live in the dark ages with no computers.