Not Sending In 4506T For Amex CLI (Questions)

[longtimelurker]

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@EvilR-T wrote:

Why don't you just send it? Problem solved.

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Because some people have privacy concerns?

[Anonymous]

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@longtimelurker wrote:

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@EvilR-T wrote:

Why don't you just send it? Problem solved.

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Because some people have privacy concerns?

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Exactly.  If I'm ever asked I'm going to strongly consider not sending it in 

[EvilR-T]

So you'll let a creditor know your social, address and phone number, mother's maiden name, when, where and what you buy, where you work, and willingly let them know income. But proving income is where you draw the line? I'm not trying to start an argument here, I'm just trying to understand the logic.

[empiror22]

evilr-t

  I agree with you  so much i have been a part of this forum for a year or so.  I always read how people get upset with a company whom is loaning you money or credit (some as loaning money) ask for reasonable documentation about your income.  its a business relationship, you have their cards and they want to ensure you can pay them. 

[longtimelurker]

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@empiror22 wrote:

evilr-t

  I agree with you  so much i have been a part of this forum for a year or so.  I always read how people get upset with a company whom is loaning you money or credit (some as loaning money) ask for reasonable documentation about your income.  its a business relationship, you have their cards and they want to ensure you can pay them. 

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There is quite a difference between providing say pay-stubs, or even a W2, and a tax transcript.  If you are filing jointly, the transcript provides private financial info about someone who may not be on the card.  It can also show stuff you have no interest in Amex knowing, if you are blind,  number of dependents etc, it is WAY more intrusive than it needs to be (see what other companies do with exactly the same concerns).   It also doesn't provide asset information, so doesn't really answer the question of whether you can pay.

Just because you don't have concerns doesn't mean the question isn't entirely valid.   Amex's process is outside the norm.

[techiegirl]

I just refinanced and had to provide w-2 and tax returns to the bank for the mortgage.  I don't see what difference is it if cc companies see that information as well.  A loan is a loan. Granted, the amount is different.  

[sosabe77]

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@EvilR-T wrote:

So you'll let a creditor know your social, address and phone number, mother's maiden name, when, where and what you buy, where you work, and willingly let them know income. But proving income is where you draw the line? I'm not trying to start an argument here, I'm just trying to understand the logic.

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Some of us might be members of an international criminal conglomerate and don't wanna bring any extra heat on our friends in Mejico or Mother Russia.  

[sosabe77]

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@techiegirl wrote:

I just refinanced and had to provide w-2 and tax returns to the bank for the mortgage.  I don't see what difference is it if cc companies see that information as well.  A loan is a loan. Granted, the amount is different.  

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Well, there's obviously a difference...evidenced by the fact that mortgage companies always ask for that information and CC companies rarely, if ever, do.  Lol.

[NRB525]

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@sosabe77 wrote:

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@techiegirl wrote:

I just refinanced and had to provide w-2 and tax returns to the bank for the mortgage.  I don't see what difference is it if cc companies see that information as well.  A loan is a loan. Granted, the amount is different.  

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Well, there's obviously a difference...evidenced by the fact that mortgage companies always ask for that information and CC companies rarely, if ever, do.  Lol.

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As one begins to cross $25k in available credit on a single card, however, the exposure the lender has grows, the potential difficulty in collecting grows. As the AMEX CLI are granted, you are given one little box to assure them "Yeah, I make $XXX per year" and they trust you. Beyond a certain point, however, they have to ask "Show us we can trust you".

You can choose not to provide the 4506-T when asked, and will just be capped with the existing credit limit.

And yes, I realize you may not ever use that $26k CL, but the nature of credit lines is, if granted, it's there. And they have little subsequent control over you using that. So, they put up this gate to re-baseline their trust for you. You choose whether you really need the CL.

Cheers!

[sosabe77]

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@NRB525 wrote:

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@sosabe77 wrote:

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@techiegirl wrote:

I just refinanced and had to provide w-2 and tax returns to the bank for the mortgage.  I don't see what difference is it if cc companies see that information as well.  A loan is a loan. Granted, the amount is different.  

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Well, there's obviously a difference...evidenced by the fact that mortgage companies always ask for that information and CC companies rarely, if ever, do.  Lol.

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As one begins to cross $25k in available credit on a single card, however, the exposure the lender has grows, the potential difficulty in collecting grows. As the AMEX CLI are granted, you are given one little box to assure them "Yeah, I make $XXX per year" and they trust you. Beyond a certain point, however, they have to ask "Show us we can trust you".

You can choose not to provide the 4506-T when asked, and will just be capped with the existing credit limit.

And yes, I realize you may not ever use that $26k CL, but the nature of credit lines is, if granted, it's there. And they have little subsequent control over you using that. So, they put up this gate to re-baseline their trust for you. You choose whether you really need the CL.

Cheers!

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I understand why they do it.  I was just addressing her comment that there's no difference because "a loan is a loan".  That was an oversimplification that completely disregarded installment vs revolving, inherent term length, etc.