Amex Chargeoff How to Handle

[creditguy321]

Hey everyone, 

Looking for some advice on how to handle an Amex situation. I unfortunately hit a really rough bad patch financially involving work of the past year or so which culminated in charging off a few Amex Cards. 4 to be exact. Two Charge Cards and to credit cards. The higest amount being a BCP for close to $12K. I managed to keep and salvage my Apple Card and a Discover Card which are about to be current and hopefully paid down soon. My question is how to go about handling the Amex situation in your expeirence(s). Should I be looking to settle with the collection agencies? Should I try to square with Amex directly? Is it even possible in time to qualify for an Amex again? I'm incredibly bummed as I'd worked really hard and for years to get my credit to a point to be able to own an Amex card. Any help you guys can offer would be greatly appreciated!

[FicoMike0]

Id be more worried about them sueing me for the money. If you can settle for less, that gets you out of legal jeopardy. I've read that amex holds a grudge unless you pay back 100%. So, if you get a payoff offer, how much extra is it worth to get back with amex? I wouldn't think it's worth a huge amount, but then I've never paid $695 for a platinum.

[creditguy321]

I thought about that as well (the legal ramifications). Will Amex still communicate and negotiate or will I have to work particularly through the collection agencies? 

Thank you!

[jules79]

I would work it out with AMEX first but still try out the collection options. Since you are in the Statute of Limitations, they may offer some additional programs for financial hardship. They have several options to settle. 

[sjt]

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@creditguy321 wrote:

Hey everyone, 

Looking for some advice on how to handle an Amex situation. I unfortunately hit a really rough bad patch financially involving work of the past year or so which culminated in charging off a few Amex Cards. 4 to be exact. Two Charge Cards and to credit cards. The higest amount being a BCP for close to $12K. I managed to keep and salvage my Apple Card and a Discover Card which are about to be current and hopefully paid down soon. My question is how to go about handling the Amex situation in your expeirence(s). Should I be looking to settle with the collection agencies? Should I try to square with Amex directly? Is it even possible in time to qualify for an Amex again? I'm incredibly bummed as I'd worked really hard and for years to get my credit to a point to be able to own an Amex card. Any help you guys can offer would be greatly appreciated!

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Amex does not sell their debts. They only assign them to a outside collection agency for collection. When they do assign them, its very possible that they can farm out your accounts to different collection agencies.

You need to figure if you want to settle for less then owed or pay them back in full. If you decide you want to settle, you get the best offer if you can pay with one payment. If you decide to pay them in full. You can negociate a payment plan and getting your account reinstated or get an Optima Card and regain membership.

[creditguy321]

This was very helpful thank you. Ideally I'd like to re establish some form of a relationship with them again so I'd prefer to pay them back in full if that is what it would take. I'll also inquire about account reinstatement as well. Thank you!

[creditguy321]

I did reach out to American Express and turns out all 5 cards were turned over to collection agencies and I was advised to reach out to them for discussions on repayment etc. 

[sjt]

When you contact them, see if you can get your account reinstated or get a Optima Card. Reinstatement are more likely for the charge cards.

[creditguy321]

Just to be clear, are you saying that once the cards have been assigned to a third party collection agency (which in this case they have and three different agencies to be exact) It is still possible to potentilaly have the card(s) reinstated if paid off? 

[sjt]

Yes, its possible.

Amex does not sell their debts. They only assign them to a collection agency. Also, they can also rotate the debt between various agencies every 1-2 months.

If you still have your Amex login information, you can pay your debt that way as well.