Posted on 03/09/2009 4:50:01 AM PDT by christx30
If you have an American Express card, beware: your card could be put on hold at any moment, even if you think you've made all your payments on time. That means, you won't be able to charge anything on your Amex card.
That's exactly what happened to Cathy Jones, a businesswoman with three Amex charge cards. She got a call from Amex last week saying her cards were now on hold, while the company did a financial investigation to make sure she could pay her bills.
Jones was baffled. She's been an Amex cardholder since 1989 and can't remember being late on a payment. So, to get some answers, Jones and I got on the phone, and called the customer service number on the back of her card.
An Amex representative in New Delhi, India, said because of the bad economic times, American Express is now doing financial investigations of thousands of cardholders. The rep said Amex is insisting these customers fill out an IRS form 4506-T, authorizing the company to get their tax returns for the last three years. The rep told us if Jones didn't fill out the IRS form, they'd cancel her charge cards for good, within five days. And here's the part that concerned Cathy Jones: The rep said these "investigations" were being done, not in the US, but in India.
(Excerpt) Read more at msnbc.msn.com ...
VERY POOR Public Relations move by AMEX, no matter how justified by market conditions.
If this happens to me, (I’ve had AMEX since the late 80s, too) they will lose my business.
Sounds like a scam.
No argument there, but it will be a cold day in H$ll before I send them 3 years of tax returns so they can "review" them. There is a lot more info on a tax return than simply gross income. And none of it is any of their business.
LLS
Hee hee!
LLS
I’m so glad to see this post ...just 5 minutes ago I did a search for ‘HSBC reducing the available credit on it’s credit cards’.
Out of the blue and as ‘strictly a business decision’ they reduced my card from 6k to $790. which is nothing.
With that amount we can’t even buy plane tickets over the net...
...we always payed up at the end of the month and it was so convenient using the card as opposed to cash.
Now I’ll book mark this page maybe I’ll find some options.
I had an Amex for several years, and eventually, like with my other cards, I got in too deep with it. (Little-known fact, you *can* actually charge over time on normal Amex cards for large purchases. We had to do it for a $3000 repair to my pickup when it stranded my wife in Atlanta.)
I went into a credit counseling program that worked with my creditors to put me on payment schedules and lower my interest rates. All my other card companies—Citi, Bank of America, Chase—were fine with it. Amex told the counseling service “eff you,” cranked my interest rate to 31%, and sold my account to a bottom-feeding collection agency.
The best part? I worked out a crippling payment with the collections agency and got the balance paid off. With the last payment, the guy said, “Now that you’ve got the balance paid, American Express is going to be sending you an offer to open another card account.” Yeah, RIGHT. I’ve learned my lesson. Membership may have its privileges, but they’re on a mighty short leash.
}:-)4
That’s why they reduced your limit—because you never carried a balance. Credit card companies HATE you. You make them no money. I’ve worked off and on in the IT side of the industry for several years, and this is the kind of stuff you hear from inside the companies. Credit card companies make their money off idiots like me who ran their balances up and then could only afford to make minimum payments (if that) while getting pounded with fees and high interest rates. A smart person like you, who prudently uses their card and pays it off every month, doesn’t produce a profit. So they look for ways to marginalize you.
}:-)4
The number on the back of my card rings Customer Service in Atlanta... I think. I have always gotten an American to help me when I have had reason to call.
LLS
...then they can keep my card!!! No investigation and card cancelled... Life is getting more and more crazy since “ O” stepped into the Oval Office!
The 3 Amex cards is the key here. I’ve had 1-bidness card and 1-personal card...but with the three in the story...my money says she kiting herasccounts for every cent and getting ready to do a bankruptcy. Sounds like due diligence on Amexs’ part-
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That crossed my mind too.
I think it should be prohibited to outsource offshore such financial data.
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I agree, thinking I will cancel my Am Ex today. Now they pissed me off. I’m sure they couldn’t care less since they get nothing because I pay them off each month.
I’m with you on this. Why did she have three cards?
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That’s not unusual. We have 7. 2 personal, and 5 corporate. 2 accounts.
Because Amex offers services that other card companies don't. For instance, I travel a lot, and my Amex doubles as a membership card to every major airline lounge; I have a quiet place to work and relax at the airport. There are a number of other travel benefits, like guaranteed hotel and car reservations, free hotel and car upgrades, etc. It also has its own AAA-type program for my personal car.
Another nice perk--if you like to eat--is that Amex holds tables at some of the nicer restaurants around so I can often get a reservation through Amex when I can't through the restaurant; same for tickets to concerts or sporting events.
There are also some nice shopping perks, like doubling the warranty on my purchases, allowing for returns if I break or lose something I buy, etc.
I was in New York on vacation some years ago, and I went to the US Open. I was leaving that day, and the tennis center happens to be not far from the airport, so I brought my bags with me to the tournament. I didn't want to lug my bags around all day, so I called AmEx. "No problem," they replied. "Come to the AmEx booth when you get in and we'll hold your bags for you. I'll call ahead and tell them that you're coming." Now that's service.
There are probably other cards that offer similar perks, but I've not seen one that offers everything that Amex does at a similar price.
time to cut up their cards
Is this a con? Why would anyone send their income tax returns to anyone except the IRS? I’d tell them to take a hike. Who needs them anyway?
YEAH....THAT was a RED flag....3 (THREE) Amex cards for her....
i agree it’s highly innappropriate to give personal financial informatin to a guy in india. We give enough info to banks when buying a house. i can’t think of other intrusive acts amongst the avg consumer aka non-business owner.
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