Amex Optima Offer while having Multiple Amex Charge offs question

[Anonymous]

Any updates? I am currently in a similar situation but keep getting very broad responses as well.

[Anonymous]

I have PERSONALLY been in this EXACT situation when I received an Optima offer. I had a Platinum and SPG go into C/O status and received a paper from AmEx shortly thereafter. I called the # and spoke to a rep. I couldn't afford to PIF right then (offer was only good for 30 days) but decided to pay in 3 installments - in full, not settled - and call back later. 

I requested the papers again for Oasis offer and the rep was like "yeah we send those out as soon as we get notified people's accounts go into charge-off status..." and I had to remind him that contacting us so soon is probably a bad idea since we're still in a position where we can't pay, or we would have!  

After some time on hold, he confirmed the paperwork was re-sent and I accepted the offer. The card based on which I was offered the Optima was PIF by the time I received it. HOWEVER, I was still making payments (via 3rd party agent), but somehow appeared each month in my actual AmEx login. Still don't understand that one, but it happened, and it's over now. Still have my Optima, along with 3 new AmEx I was approved for this March! 26 months clean...

[Anonymous]

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@AverageJoesCredit wrote:

 Why Amex would say ok, pay this one, but dont worry sbout the others is beyond me. 

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Presumably the same reason that they take settlements.   Any money back is a win, and if an Optima offer is what it takes to get it, that may be fine from their view point.

[sjt]

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@Remedios wrote:

@Rebelatheart  In almost all cases where Optima was issued, there was no remaining delinquent debt to Amex (accounts were either PIF or settled for specified amount). 

Perhaps instead of dealing with these accounts individually,  you could ask them for the total settlement amount they would consider in exchange for Optima. 

I personally dont see them issuing it if only one account is paid, but that's just an opinion.  

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If these accounts are sent to separate collection agencies, you would have to deal with them individually. I don't understand why Amex doesn't send all cardholder accounts to one agency instead of spreading them out. 

[Red1Blue]

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@sjt wrote:

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If these accounts are sent to separate collection agencies, you would have to deal with them individually. I don't understand why Amex would don't send all cardholder accounts to one agency instead of spreading them out. 

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As far as I know Amex does not sell its debt. Most the collections are handled in house. Even the letters come from different agencies all collection activity is managed by Amex internally.

[sjt]

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@Red1Blue wrote:

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@sjt wrote:

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If these accounts are sent to separate collection agencies, you would have to deal with them individually. I don't understand why Amex would don't send all cardholder accounts to one agency instead of spreading them out. 

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As far as I know Amex does not sell its debt. Most the collections are handled in house. Even the letters come from different agencies all collection activity is managed by Amex internally.

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I know Amex doesn't sell their debts, but they do outsource their collections to various collection agencies. It also rotates to other collections agencies after a period of time.

[Red1Blue]

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@sjt wrote:

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I know Amex doesn't sell their debts, but they do outsource their collections to various collection agencies. It also rotates to other collections agencies after a period of time.

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That is true. But after few days they all come back to Amex Internal Collections. In my case I did get some letters from different collectors. After year or two when I called they were with Amex Internal Collections. I have not idea how and when they shuffle things but Amex internal collections does have a say on how it works.

[Remedios]

I've always been really curious about the legalities behind collecting any amounts that have been included in COs. 

Lenders get "compensated" for their losses, and reversing that is rather arduous process, but not an impossible one.

The part that really boggles my mind is collecting on accounts included in BK. 

I don't know if that's illegal or borderline legal, but it's shady and totally defies the purpose of BK. 

I'm aware they are attorney heavy, but there are  very good reasons why other lenders won't touch those accounts. 

Gotta love Amex and their carrot/stick method. 

[Anonymous]

Thank you for the resposnes. So if I am understanding correctly, you PIF 1 of the cards in which you recieved the Optima offer for even though you were still making payments on the other one?

I was offered 2 seperate Optima offers for 2 seperate cards. I was thinking of PIF the lowest card amount, gaining the Optima, and work on paying off the 2nd card. My only fear is this endeavor would prove pointless if im not able to get the Optima card after paying off my 1st charge off.

[Anonymous]

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@Anonymous wrote:

Thank you for the resposnes. So if I am understanding correctly, you PIF 1 of the cards in which you recieved the Optima offer for even though you were still making payments on the other one?

I was offered 2 seperate Optima offers for 2 seperate cards. I was thinking of PIF the lowest card amount, gaining the Optima, and work on paying off the 2nd card. My only fear is this endeavor would prove pointless if im not able to get the Optima card after paying off my 1st charge off.

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They made good on their word and yes I got the Optima by paying only one in full, and while I was still paying on the other one. 

The only things they won't do is combine limits or give you two Optima cards. Outside of that, you can get what you want and pick which one you'd like to pursue.