Jan 3, 2014, 2:49 pm
Last edit by: mia
Earlier discussion is in this thread: Financial Review Discussion [2009-2013]
In the USA a Financial Review typically includes a request to submit an IRS form 4506-T which authorizes American Express to obtain a transcript of your Federal Income Tax Return for a specific year. It does not authorize a copy of the actual return. Download the form here: http://www.irs.gov/pub/irs-pdf/f4506t.pdf
Order your own transcript here: https://sa2.www4.irs.gov/irfof-tra/start.do
Other USA-based rewards card issuers also audit accounts and end unsatisfactory relationships.
Bank of America: 2013
Citibank: 2013
JP Morgan Chase: 2013.1 2013.4 2013.9 2013.12
In the USA a Financial Review typically includes a request to submit an IRS form 4506-T which authorizes American Express to obtain a transcript of your Federal Income Tax Return for a specific year. It does not authorize a copy of the actual return. Download the form here: http://www.irs.gov/pub/irs-pdf/f4506t.pdf
Order your own transcript here: https://sa2.www4.irs.gov/irfof-tra/start.do
Other USA-based rewards card issuers also audit accounts and end unsatisfactory relationships.
Bank of America: 2013
Citibank: 2013
JP Morgan Chase: 2013.1 2013.4 2013.9 2013.12
Financial Review discussion
Apr 6, 2016, 8:07 pm
#616
Join Date: Sep 1999
Location: SF Bay Area
Programs: UA 1K MM, Accor Plat, Htz PC, Natl ExEm, other random status
Posts: 2,876
I'm sorry but I disagree that Amex is that concerned with gift card purchases. They push them all the time and they are one (or were) one of the biggest sellers of gift cards in the industry and clearly allow the purchase of large dollar amounts of their gift cards with credit cards, including their own credit cards. If it was so much of a concern for them then they wouldnt allow their own cards to purchase the gift cards from their site. The purchase of gift cards is not now nor ever has been money laundering. Far too many people push that notion and its just not true. Real money launderers would laugh at the notion. Money launderers 'launder' their money by funneling illegally obtained cash into legitimate businesses and other sources to hide that cash. They certainly don't use credit cards to do so.
The reason that Amex and other CC companies are concerned about the amount of gift card purchases is the amount of rewards that they give out for the credit cards being used. That's why they ever scrutinize the purchases, not money laundering.
The reason that Amex and other CC companies are concerned about the amount of gift card purchases is the amount of rewards that they give out for the credit cards being used. That's why they ever scrutinize the purchases, not money laundering.
Just because you don't understand how money laundering might take place or how financial institutions monitor and try to prevent money laundering, doesn't mean that it's not going on or that it's not important.
See, e.g.: http://www.regblog.org/2014/04/10/10...an-gift-cards/
Money laundering using prepaid instruments has been a concern of regulators since the early days of travelers' checks (remember those? they're really just paper gift cards): http://www.worldcrunch.com/business-...tels/c2s11067/ and https://www.fincen.gov/financial_ins...ion_guide.html
Even retailers like GameStop have to be concerned about compliance with money laundering regulations in connection with their gift card programs.
Gift cards complicated things for regulators, and virtual currencies complicated them even more, requiring more sophisticated regulations. If you're actually interested in this subject, take a couple of minutes and read FinCEN's guidance on virtual currencies: https://www.fincen.gov/statutes_regs...2013-G001.html
There are criminal penalties at stake here, including potential jail time, so financial institutions take these laws and regulations *very* seriously.
Greg
Apr 6, 2016, 8:20 pm
#617
Join Date: May 2015
Location: LAX, BUR
Programs: AS,AA,JB, HH Gold, Starriott Titanium Elite, Hyatt Explorist, Global Entry
Posts: 1,933
Guys,
-Opened Platinum card (100K) mid-Feb, making a few thousand dollars of normal purchases, including $3K of VGCs
-Opened SPG Business (35K) end of March, spending $5K on VGCs
-Opened SPG Personal (35K) end of March. Tried purchasing $2,500 VGCs last night, and charge was denied.
-Opened Platinum card (100K) mid-Feb, making a few thousand dollars of normal purchases, including $3K of VGCs
-Opened SPG Business (35K) end of March, spending $5K on VGCs
-Opened SPG Personal (35K) end of March. Tried purchasing $2,500 VGCs last night, and charge was denied.
Coincidence or not but Platinum>VGC=FR more than any other Amex card it seems.
Apr 7, 2016, 6:14 am
#618
FlyerTalk Evangelist
Join Date: Jul 2008
Location: IAH
Programs: DL DM, Hyatt Ist-iest, Stariott Platinum, Hilton Diamond
Posts: 12,789
Anecdotes seem to be the charge cards (plat, PRG) and MS is likely to trigger FR. OP seems to have just hit the Amex cards too hard too fast, especially if no Amex history. I'd also be curious what the credit limits are on the SPG cards.
Apr 7, 2016, 8:38 am
#619
Join Date: Aug 2015
Posts: 11
Commensurate with my actual (and stated) income, Platinum has no limit (confirmed by rep this morning), and SPG cards have relatively high limits as well.
Unfortunately, they're only allowing me to send in my 2014 tax return, and I had taken 2 years off to go back to b-school, so the only income they'll see is my wife's (and hers wasn't much). I currently have a high-paying job in the Bay Area, but Amex won't allow me to send in my *2015* tax return, or pay stub, etc.
They're going to draw the absolutely wrong conclusion about my financial health during this FR, and at a minimum, they're going to slash the credit limit, if not something more drastic.
Hopefully others can learn from this!
Apr 7, 2016, 9:09 am
#622
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,954
American Express charge cards have no disclosed spending limit which means the limit is flexible as explained in the card terms:
American Express marketed this as a benefit to the consumer in an era when BankAmericard and Master Charge limits were very low. Now it is primarily a benefit to American Express unless you have a substantial amount of reimbursable expense account spending in the traditional travel and entertainment categories.
No Pre-Set Spending Limit
No pre-set spending limit does not mean unlimited spending. Purchasing power adjusts with your use of the Card, your payment history, credit record and financial resources known to us, and other factors.
No pre-set spending limit does not mean unlimited spending. Purchasing power adjusts with your use of the Card, your payment history, credit record and financial resources known to us, and other factors.
Apr 7, 2016, 12:15 pm
#623
Join Date: May 2015
Location: LAX, BUR
Programs: AS,AA,JB, HH Gold, Starriott Titanium Elite, Hyatt Explorist, Global Entry
Posts: 1,933
Apr 8, 2016, 9:59 am
#624
Join Date: Mar 2016
Posts: 25
I have Amex Blue with 30$ in spend since 2014, in Jan of 2016, i applied for PRG, got accepted, and spend 10k a month. Feb I got a BRG and spend 20k a month. I stated my income is 100k (projected with my new freelancing clients). I fully expect a FR in the next 6 months.
Apr 8, 2016, 10:11 am
#625
Join Date: Sep 1999
Location: SF Bay Area
Programs: UA 1K MM, Accor Plat, Htz PC, Natl ExEm, other random status
Posts: 2,876
I have Amex Blue with 30$ in spend since 2014, in Jan of 2016, i applied for PRG, got accepted, and spend 10k a month. Feb I got a BRG and spend 20k a month. I stated my income is 100k (projected with my new freelancing clients). I fully expect a FR in the next 6 months.
I hope you do get FR'ed, just as a matter of principle.
What I'm really curious about, though, is whether AmEx's continuing to permit this sort of transaction behavior is a sign of (a) AmEx's incompetence, or (b) AmEx's desperation because they need the transaction volume so badly that they're willing to take a loss on an overall relationship.
Given that I really like my AmEx cards, I hope it's (a), because (b) is a sign of circling the drain.
Greg
Apr 8, 2016, 10:34 am
#626
Suspended
Join Date: Dec 2014
Posts: 8,460
What I'm really curious about, though, is whether AmEx's continuing to permit this sort of transaction behavior is a sign of (a) AmEx's incompetence, or (b) AmEx's desperation because they need the transaction volume so badly that they're willing to take a loss on an overall relationship.
Apr 8, 2016, 10:36 am
#627
Join Date: Sep 1999
Location: SF Bay Area
Programs: UA 1K MM, Accor Plat, Htz PC, Natl ExEm, other random status
Posts: 2,876
Apr 8, 2016, 9:32 pm
#628
Join Date: Mar 2016
Posts: 25
So, let me get this straight. You're spending $360K per year on stated income of $100K per year (which is not actually demonstrable)?
I hope you do get FR'ed, just as a matter of principle.
What I'm really curious about, though, is whether AmEx's continuing to permit this sort of transaction behavior is a sign of (a) AmEx's incompetence, or (b) AmEx's desperation because they need the transaction volume so badly that they're willing to take a loss on an overall relationship.
Given that I really like my AmEx cards, I hope it's (a), because (b) is a sign of circling the drain.
Greg
I hope you do get FR'ed, just as a matter of principle.
What I'm really curious about, though, is whether AmEx's continuing to permit this sort of transaction behavior is a sign of (a) AmEx's incompetence, or (b) AmEx's desperation because they need the transaction volume so badly that they're willing to take a loss on an overall relationship.
Given that I really like my AmEx cards, I hope it's (a), because (b) is a sign of circling the drain.
Greg
SQ Suites RTW trip here i come!
(94k SQ) JFK -> FRA -> SIN
(92k SQ) SIN -> NRT -> LAX
-> JFK TBD
for 62k in facebook ads spend (3x 62 = 186k)
Last edited by pointslut; Apr 8, 2016 at 9:43 pm
Apr 8, 2016, 10:14 pm
#629
Join Date: Oct 1999
Location: Atlanta, GA
Programs: AA PLT, AS 75K, DL DM, HY Globalist, HH Diamond, MC/RZ/SW Platinum, AB/UA Silver, WN CP
Posts: 1,122
Amex supports it (b). Its 99% facebook ads and every single person i know who does ads uses amex, much in the same way. i think they are in on it because not only this, but they give 3x points on ads. one of my friends got hit with the FR, and he got limited on his charges card after 500k in spend. HALF MILLION DOLLARS, he made 20k the year before.
SQ Suites RTW trip here i come!
(94k SQ) JFK -> FRA -> SIN
(92k SQ) SIN -> NRT -> LAX
-> JFK TBD
for 62k in facebook ads spend (3x 62 = 186k)
SQ Suites RTW trip here i come!
(94k SQ) JFK -> FRA -> SIN
(92k SQ) SIN -> NRT -> LAX
-> JFK TBD
for 62k in facebook ads spend (3x 62 = 186k)