American Express Membership Rewards - Under AMEX Financial Review, please help!

I've been a Amex customer for more then a year now. I carry a personal and business platinum card. I started my business last year aug of 07 and I spend about 20-30k on my personal card every month. I've always paid it off on time and never had any problems with them. Now AMEX says my account is under Financial Review and they want my 2007 Tax Returns. I made less then 10k in 2007 because at that time I was still in school working part time at a restaurant.

They said if I don't send the 4506-T form in, they will cancel my accounts. I have over 200k membership points on that account and I cannot have them close it. If I send the my 07 tax returns in, I don't even know what is going to happen to me?!? Is there a way out of this? I feel that I am being disrespected especially that I am such a loyal customer to them. I use the card for everything! I also have a fico score of over 700, I just don't see why they are doing this. Please help! Thanks!

1) Search FT and Google for "Financial Review" and read up on the process and why AMEX does this.

2) Do what AMEX says if you want to keep the card.

3) If you want, send them a short, polite, unemotional letter stating why you think you are a safe & credit-worthy customer & offer them additional information such as business financials and personal financials and trade references.

4) Don't take it personally! It's not personal! AMEX is just doing what it thinks is necessary for its business. They might even make a mistake in their evaluation of your credit-worthiness; but don't take it personally. You always have the option of taking your business elsewhere. You might want to start lining up back-up credit; although applying could cause a small short-term hit on your credit score.

I was an amex customer for 20 years when I received a financial review on one of my business accounts this past April. I had multiple business and personal cards (Plat personal and business, SPG, SkyMiles) always paid on time, large credit limits, etc.

I refused to give them any tax information out of principal, and have read that even if you do provide them with tax information, they are still likely to cancel your accounts. To prevent "Account Closed by Grantor" from appearing on my credit report, which I believe can be detrimental to your score, I immediately closed my personal account. When they didn't receive my information, they cancelled ALL of my business accounts, not just the business they requested the information for.

Out of fear that my points would also be forfeited, I transferred 800K to Aeroplan before my accounts were cancelled. They told me that even if my account was cancelled, they would not take the points, but I thought better safe than sorry. As an aside, I'm very happy with Aeroplan's program.

Being a glutton for punishment, and wanting the SPG card for its ability to transfer into multiple airlines rewards programs, I recently applied online for a personal and business SPG card. Both applications were declined, the reason cited "Previous Account(s) cancelled by American Express".

After several phone calls, I found out the reason for the decline was that the cancelled accounts went into their "collections" department when I refused to provide tax information. Though not reported to credit agencies as "collections" that's the department they go to at AMEX (even though all accounts were always paid on time). I confirmed with the collections department that all my accounts had always been paid on time, and they confirmed that the only reason my accounts were in that department was failure to provide information requested. However, it has proven difficult to get to a human being who can check my credit score (763 FICO), credit usage (13%), etc. to see that I'm ok to get a new credit card. They may have some rule that says once you don't provide information, you can't get a card no matter what, for x amount of time, still not sure.

creditboards.com is a site that has a lot of information on Amex Financial Reviews.

Good luck.

AMEX really needs to have a better way of handling this financial review. I see this type of post every other month and they are really pissing off some huge spenders.

Now AMEX says my account is under Financial Review and they want my 2007 Tax Returns. I made less then 10k in 2007 because at that time I was still in school working part time at a restaurant.

If you don't mind me asking, what is the nature of your business that one year after graduating from school you're pushing $30K per month through your card?

You're not in internet marketing, are you? If not, then the rest of this doesn't apply but I think it's interesting nonetheless.

I've seen a number of posts where people have been on the sharp end of financial reviews because they've been funding their internet marketing companies with their credit cards.

I can see why Amex worries about this kind of business. It's run on razor-thin margins with extremely high monthly charge volume: one major client fails to pay and the whole thing turns into personal bankruptcy pretty fast.

If they review my 2007 tax returns, do you think they will cancel my card?

Also is it possible to put my dad's name and social on there instead? He is the secondary card holder on my account and he is the one that actually spends all the money. I wanted him on there because he doesn't have a Amex and I could get a lot free points.

If they review my 2007 tax returns, do you think they will cancel my card?

Also is it possible to put my dad's name and social on there instead? He is the secondary card holder on my account and he is the one that actually spends all the money. I wanted him on there because he doesn't have a Amex and I could get a lot free points.

So, the plot thickens. In your initial post you explicitly stated that you started a business and that you spend 20-30k per month. Now in this post you state that your dad is the one spending the money. Which is it?

Perhaps AMEX is suspicious for a reason; based on your two somewhat contradictory posts I already know I am...

Good luck

Regards

There's no way 'around' a financial review.

If Amex decides they really shouldn't have given you credit, they will take it away. That's not an entirely unreasonable decision decision, either. Just because you've managed to pay your bills in the past doesn't mean that Amex -- given an array of additional information -- will be sufficiently confident of your ability to do so in the future. Significant credit lines from American Express is not a universally recognized human right.

I just completed an Amex Financial Review, they hit me with it literally every single year. This was the first time they didn't increase my credit line post-review (they left it just where it was).

I'm not a fan of submitting tax returns, but that's Amex's condition for extending a mid six-figure credit line to me, I can't really blame them, and it's worth it to me.

At first I thought internet marketing too. If you search his previous posts you'll find he took pics of a welcome or preview mailing for Centurion.

I think that once Amex saw that he was spending very little on his primary account, yet a secondary user was spending 20-30k, they became suspicious. I'm surprised he even got a Plat Amex making 10-12k a year since it costs 450$ a year to even own it. Maybe his dad pays for that too.

I got hit with the financial review about a year ago, but it seems to be a little different than what everyone else is talking about. I had a big charge to push through on my personal card (which wasn't any bigger than some I've done with them in the past), but I always call to make sure there are no problems. I told Amex that it was for a business expense, and that if they looked at the charging history on my account, this was not unusual. Instead of asking for personal tax returns, they wanted copies of our company bank statements for the last three months. Since we pay everything we can by credit card, we have a ton of float, which sits in the bank (mostly in a money market account). I faxed them three months of checking account and MMA statements, and in less than two hours, I was good to go.

Same with one of my business partners. A couple of months ago he decided he wanted an Amex card (his first card with them), and we wanted to put $50K on it. Again, three months of bank statements faxed to them, and he was approved.

Instead of asking for personal tax returns, they wanted copies of our company bank statements for the last three months. Since we pay everything we can by credit card, we have a ton of float, which sits in the bank (mostly in a money market account). I faxed them three months of checking account and MMA statements, and in less than two hours, I was good to go.

Two years ago I did the same thing to get a perpetual mid-six-figure credit limit.

http://creditboards.com/forums/index.php?showtopic=363695

Seems our friend JohnZCA has also posted the same story at Credit Boards.

Transfer immediately........do not wait......do it. Then provide the requested information, expect AX to cancel your accounts. On second thought, cancel your account NOW. Do not let AX cancel the account for you. If you initiate the action, the credit report will not negatively impact you.

Good news, once you are employed/have income, they will gladly open new account. Do not underestimate the power and nastiest of AMEX Financial Reviews.

So, the plot thickens. In your initial post you explicitly stated that you started a business and that you spend 20-30k per month. Now in this post you state that your dad is the one spending the money. Which is it?

Perhaps AMEX is suspicious for a reason; based on your two somewhat contradictory posts I already know I am...

Good luck

Regards

I think if Amex was to review your returns, they would most likely put spending limits on your account.

Transfer immediately........do not wait......do it. Then provide the requested information, expect AX to cancel your accounts. Good news, once you are employed/have income, they will gladly open new account. Do not underestimate the power and nastiest of AMEX Financial Reviews.

Seems like good advice, except that OP would probably be better off canceling his own account, rather than having Amex do it for him.

Seems like good advice, except that OP would probably be better off canceling his own account, rather than having Amex do it for him.

Yes, I agree that the OP should voluntarily cancel his account. The credit report notation and affect is vastly different if the OP initiates the closure rather than AX closing the account.

You know.... as much as I love Amex, and the amazing treatment I've received since they sent me my first platinum credit card when I was 18.... To now 4 years later, (hold platinum credit card, platinum charge card, small biz card, and a line of credit).... If they were to bust out a financial review... I would NEVER do business with them again...

I'm a young small business owner. I'm behind on personal taxes 2 years, and corporates one year... NO WAY IN HELL that I'd be able to file my taxes and send a copy of the returns off to amex within a couple months...

It'd break my heart. First women, now amex screwing me over? What's left on this planet that won't screw you over.... lol

I'm a young small business owner. I'm behind on personal taxes 2 years, and corporates one year... NO WAY IN HELL that I'd be able to file my taxes and send a copy of the returns off to amex within a couple months...

No offense, but these situations are probably the reason AmEx does financial reviews.

Happened to me last year. They wanted permission to directly request my tax records from the IRS. I searched FT and the FW and found that even if you do, they often close your account just to be safe. With the current economy, this is just going to be worse. I didn't want to take this chance and quickly called to cancel all my cards. The agent agreed that this was a very rude way to treat customers.

Six months later I opened another card. I was surprised that I was approved (instantly?) but the first three times I tried to use it I was declined. Each time I had to call and waste so much time over it. The third time I kept the agent on the phone and made an online purchase over circuit city to verify that it was properly fixed.

Transfer your points out ASAP.

I can't emphasize how important it is to close all your accounts asap. Once AMEX does it for you it adversely affects your credit score.

Transfer your points out ASAP.

You know.... as much as I love Amex, and the amazing treatment I've received since they sent me my first platinum credit card when I was 18.... To now 4 years later, (hold platinum credit card, platinum charge card, small biz card, and a line of credit).... If they were to bust out a financial review... I would NEVER do business with them again...

I'm a young small business owner. I'm behind on personal taxes 2 years, and corporates one year... NO WAY IN HELL that I'd be able to file my taxes and send a copy of the returns off to amex within a couple months...

It'd break my heart. First women, now amex screwing me over? What's left on this planet that won't screw you over.... lol
Wow. I can't see how you'd be offended by a FR in your situation.

Happened to me last year. They wanted permission to directly request my tax records from the IRS. I searched FT and the FW and found that even if you do, they often close your account just to be safe. With the current economy, this is just going to be worse.

I guess it depends where you sit in Amex's eyes -- they doubled the limit on one of my cards last week during the market meltdown without being requested. Go figure.

No offense, but these situations are probably the reason AmEx does financial reviews.

Exactly! I don't doubt Zhariak's intentions on trying to pay all of their creditors back. BUT the cold hard facts are that once someone starts to fall behind on payments, they're probably not going to get ahead. Many people actually do but the majority don't and keep digging themselves deeper and deeper into debt and eventually bankruptcy.

People don't expect home mortgages from banks without some snooping by the bank. I don't see why people find such due diligence for credit cards unreasonable, especially with limits that could easily buy houses. Unlike a mortgage, there's no collateral for the bank (in this case Amex) to take if you default.

1. I think that it is reasonable for American Express to do a verification of ability to pay; given our recent financial meltdown I would say it might be imprudent not to.

2. How many of us who own businesses don't practice prudent financial review of our client base? After all we perform services, sell products, etc. often under the thought that our clients will never stiff us; I've gotten stiffed for 30k recently not a huge sum for my company, but still its not like pocket change. Had I done a financial review / check recently I would have learned that this particular client was going down for the count.

3. The complaints the OP has are justified if you depend on a service, and it is cut off without notification it is just bad business. In my case I've never had Amex cut me off without some notice, although I belive YMMV on this issue. No notice equals just plain bad business on Amex's part -- verifiying ability to pay while not nice is prudent.

4. Nasty comments are well just that nasty...

1. I think that it is reasonable for American Express to do a verification of ability to pay; given our recent financial meltdown I would say it might be imprudent not to.

2. How many of us who own businesses don't practice prudent financial review of our client base? After all we perform services, sell products, etc. often under the thought that our clients will never stiff us; I've gotten stiffed for 30k recently not a huge sum for my company, but still its not like pocket change. Had I done a financial review / check recently I would have learned that this particular client was going down for the count.

3. The complaints the OP has are justified if you depend on a service, and it is cut off without notification it is just bad business. In my case I've never had Amex cut me off without some notice, although I belive YMMV on this issue. No notice equals just plain bad business on Amex's part -- verifiying ability to pay while not nice is prudent.

4. Nasty comments are well just that nasty...

If you take cash, wire transfers and credit cards ONLY then their would be no reason to do a review on a client!!!

welli just receive a call from my friends of amex yesterday about 3 pm this with a unknown number saying my 2 bussines cards are on temporary hold beacuse im on financial review all he wants its the last 3 bank statements once they received and complete the investigation they will remove the hold i fax it within 2 hours call me today not only remove the hold but increase the credit limit double over 52k i cant beleive i was affraid they will cancel i got well overr 400k MR i feel better.

welli just receive a call from my friends of amex yesterday about 3 pm this with a unknown number saying my 2 bussines cards are on temporary hold beacuse im on financial review all he wants its the last 3 bank statements once they received and complete the investigation they will remove the hold i fax it within 2 hours call me today not only remove the hold but increase the credit limit double over 52k i cant beleive i was affraid they will cancel i got well overr 400k MR i feel better.

It is probably legit, but I would call AmEx back using the phone number on the back of your card to verify that is the case. I would be very wary about sending any information to a strange fax number based solely on an incoming call.

it is probably legit, but i would call amex back using the phone number on the back of your card to verify that is the case. I would be very wary about sending any information to a strange fax number based solely on an incoming call.



i did call the number on the card before i send anything it was from amex he did confirm tha fax number all the information it did sound like a scam

If you take cash, wire transfers and credit cards ONLY then their would be no reason to do a review on a client!!!

I believe the appropriate way to state this is that if you only accept pre-paid work then there is no reason to do a review. It doesn't matter what means the customer is supposed to use to pay you when they do not actually send the payment. ;)

I guess it depends where you sit in Amex's eyes -- they doubled the limit on one of my cards last week during the market meltdown without being requested. Go figure.



Exactly! I don't doubt Zhariak's intentions on trying to pay all of their creditors back. BUT the cold hard facts are that once someone starts to fall behind on payments, they're probably not going to get ahead. Many people actually do but the majority don't and keep digging themselves deeper and deeper into debt and eventually bankruptcy.

People don't expect home mortgages from banks without some snooping by the bank. I don't see why people find such due diligence for credit cards unreasonable, especially with limits that could easily buy houses. Unlike a mortgage, there's no collateral for the bank (in this case Amex) to take if you default.

I actually don't owe anyone money. Ive always paid off Amex in full along with all my other credit accounts...

When I mentioned my taxes being late. I'm talking corporate, and personal... lol... How many companies actually file their corporate taxes on time? Plenty always file late... Ive just got numerous paperwork todo, and to update my accounting system... Paying isn't an issue, finding time to update is the issue... lol

Hello OP,

If you want to keep your Amex card, then submit your tax return with an explanation stating that even though your net income is less than $10,000, you can highlight your Schedule C stating here's all the income I'm making and circle where it's being spent... travel, meals, supplies, postage.

As long you have gross income coming in.. meaning if you are spending $20,000 to $30,000 a month and you pay the bill in full, then you must have $20,000 to $30,000 of gross income each month coming in. If you do not, then where is the money coming from that you're paying the bill?

That's my two cents.

David

This happened to my wife's AMEX account about 15 years ago. They said that even if they canceled her account she would keep her points. She had about 5,000 points in her account. They just wanted immediate payment of the full balance.

In my opinion, they lied. Not only did they cancel the account, they canceled the points as well immediately after they received the full payment.

My sympathies for the thousands of small business people and self-employed professionals that have used their AMEX accounts as their working capital. I only hope they can find other sources of credit, such as Credit Unions, to make them personal loans so they can:( stay in business.

With the sharp contraction of credit, we are doing what William Jennings Bryan (a one-term Democratic Congressman from Omaha who was three times the Democratic nominee for president) described as "crucifying mankind on a cross of gold."

Transfer immediately........do not wait......do it. Then provide the requested information, expect AX to cancel your accounts. On second thought, cancel your account NOW. Do not let AX cancel the account for you. If you initiate the action, the credit report will not negatively impact you.

Account closed (cancelled) by holder does negatively impact your credit. I don't know the reasons but it does the same as if you have too many applications for credit.

Account closed (cancelled) by holder does negatively impact your credit. I don't know the reasons but it does the same as if you have too many applications for credit.

Its worse if AMEX closes the accounts for you. For anyone under FR, the safest is to transfer all points out asap and close all cards.

With the sharp contraction of credit, we are doing what William Jennings Bryan (a one-term Democratic Congressman from Omaha who was three times the Democratic nominee for president) described as "crucifying mankind on a cross of gold."

William Jennings Bryan was referring to the gold standard and the silver standard. This had to do with currency rates as opposed to credit. The issues are different, and I'll be brief, and just leave it at that.

Account closed (cancelled) by holder does negatively impact your credit. I don't know the reasons but it does the same as if you have too many applications for credit.

Not true. Excessive inquiries does negatively impact your credit score. The impact is lessened after 6 months, and they are removed after two years. However, closed by guarantor does not lower your credit score. I have seen plently of people commenting about how it does but no proof. Fyou search FW I've seen posts about closed by guarantor and NO decrease in score (with proof). People get Citi and chase accounts closed quite often there (for various reasons) and if you politely ask I'm sure you'll be told that it does not effect.

Not true. Excessive inquiries does negatively impact your credit score. The impact is lessened after 6 months, and they are removed after two years. However, closed by guarantor does not lower your credit score. I have seen plently of people commenting about how it does but no proof. Fyou search FW I've seen posts about closed by guarantor and NO decrease in score (with proof). People get Citi and chase accounts closed quite often there (for various reasons) and if you politely ask I'm sure you'll be told that it does not effect.

I agree with you for electronic approvals. However, with transactions (such as real estate) where your credit report it reviewed in underwriting it can have an impact and force explanations to the underwriter. My wife is in the real estate business and has experienced this with clients.

This is a terrible sequence of events. If you closed the account and kept paying on time it should not have happened.

I was an amex customer for 20 years when I received a financial review on one of my business accounts this past April. I had multiple business and personal cards (Plat personal and business, SPG, SkyMiles) always paid on time, large credit limits, etc.

I refused to give them any tax information out of principal, and have read that even if you do provide them with tax information, they are still likely to cancel your accounts. To prevent "Account Closed by Grantor" from appearing on my credit report, which I believe can be detrimental to your score, I immediately closed my personal account. When they didn't receive my information, they cancelled ALL of my business accounts, not just the business they requested the information for.

Out of fear that my points would also be forfeited, I transferred 800K to Aeroplan before my accounts were cancelled. They told me that even if my account was cancelled, they would not take the points, but I thought better safe than sorry. As an aside, I'm very happy with Aeroplan's program.

Being a glutton for punishment, and wanting the SPG card for its ability to transfer into multiple airlines rewards programs, I recently applied online for a personal and business SPG card. Both applications were declined, the reason cited "Previous Account(s) cancelled by American Express".

After several phone calls, I found out the reason for the decline was that the cancelled accounts went into their "collections" department when I refused to provide tax information. Though not reported to credit agencies as "collections" that's the department they go to at AMEX (even though all accounts were always paid on time). I confirmed with the collections department that all my accounts had always been paid on time, and they confirmed that the only reason my accounts were in that department was failure to provide information requested. However, it has proven difficult to get to a human being who can check my credit score (763 FICO), credit usage (13%), etc. to see that I'm ok to get a new credit card. They may have some rule that says once you don't provide information, you can't get a card no matter what, for x amount of time, still not sure.

creditboards.com is a site that has a lot of information on Amex Financial Reviews.

Good luck.