Financial Review discussion [2009-2013]
May 13, 2010, 6:44 pm
#46
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Better information permits more accurate predictions. Even small improvements in modelling cardholder delinquencies or defaults can generate substantial incremental profits for a mass market card issuer.
May 13, 2010, 10:34 pm
#47
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May 13, 2010, 10:48 pm
#48
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Character, Capacity, and Collateral
Amex card members usual are judged from the get go for their goodness.
Only chaos and financial recklessness should be reviewed.
May 14, 2010, 3:07 am
#49
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They were not. American Express issued cards on the basis of self-declared household income, the same as other issuers. Reviews are one tool to detect cardholders who misrepresented their financial resources -or- whose circumstances have changed.
May 14, 2010, 4:54 am
#50
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If you look into the threads here and on other sites, you'll see that just about every case F/R is triggered by something. Unusually high charge volume on an Amex card, or something on their Experian report (significant increase in money owed to other creditors, missed payments, etc).
I get that people are frustrated when it happens, espically if it happens when you're on the road. What I don't get is the attitude of "you have no right to see it". Amex is a lender and they want to be sure they are going to be repaid. What is wrong with them wanting to see your financials? Should all the risk be with the lender?
Remember: It isn't personal, its just business.
I get that people are frustrated when it happens, espically if it happens when you're on the road. What I don't get is the attitude of "you have no right to see it". Amex is a lender and they want to be sure they are going to be repaid. What is wrong with them wanting to see your financials? Should all the risk be with the lender?
Remember: It isn't personal, its just business.
May 14, 2010, 11:24 am
#51
Join Date: Dec 2009
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For those that take issue with AMEX financial reviews, or any other lender's demand for documentation: If you were to lend, say, $25,000, unsecured by any collateral, to someone you've never met, what sort of documentation would you require before you put your own money on the line?
May 14, 2010, 11:53 am
#52
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I think Amex goes a bit too far in the way they shut off your accounts, and make you feel "guilty until proven innocent". But something tells me that if you've gotten that far, they must be pretty worried about something. It can't be cheap for them to perform the F/R, they wouldn't do it blindly.
Last edited by skofarrell; May 14, 2010 at 12:19 pm Reason: spelling
May 14, 2010, 3:00 pm
#53
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For those that take issue with AMEX financial reviews, or any other lender's demand for documentation: If you were to lend, say, $25,000, unsecured by any collateral, to someone you've never met, what sort of documentation would you require before you put your own money on the line?
I would process a full loan application and proceed with a financial review right then and there. And when the time comes for additional fund requests or credit line increases, another financial review would be valid.
But the FR's I am referring to, are random, not initial, and after the fact.
Those are the one's I have read about.
May 14, 2010, 3:22 pm
#54
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Good question
I would process a full loan application and proceed with a financial review right then and there. And when the time comes for additional fund requests or credit line increases, another financial review would be valid.
But the FR's I am referring to, are random, not initial, and after the fact.
Those are the one's I have read about.
I would process a full loan application and proceed with a financial review right then and there. And when the time comes for additional fund requests or credit line increases, another financial review would be valid.
But the FR's I am referring to, are random, not initial, and after the fact.
Those are the one's I have read about.
May 14, 2010, 5:02 pm
#55
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May 14, 2010, 6:42 pm
#56
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That I can understand to a certain extent. Pay stubs should be sufficient unless the card member is self employed. Taxes seem a little extreme.
May 14, 2010, 6:58 pm
#57
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I don't think American Express has someone wearing a green eyeshade sitting in the back room looking at income documentation. Requesting the W-2 data directly from the IRS not only eliminates the possibility of tampering, but provides the information in a standardized digital format to facilitate electronic processing.
May 14, 2010, 7:02 pm
#58
Join Date: Feb 2007
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I have wondered how much a persons age factors into lending decisions. After all statistical life expectancy is as predictable as a lot of other factors. Even though this practice is illegal do we all really think banks would not take age into consideration? And if we knew for sure they did how would we react?
Last edited by dave7250; May 15, 2010 at 8:13 am
May 14, 2010, 7:36 pm
#59
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I have wondered how much a persons age factors into lending decisions. After all statistical life expectancy is as predictable as a lot of other factors. Even though this practice is illegal do we all really think banks would not take age into consideration? And if we knew for sure they did how would we react?
PS This thread is way off topic. How about closing it mia.
PS This thread is way off topic. How about closing it mia.
May 14, 2010, 7:39 pm
#60
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I don't think American Express has someone wearing a green eyeshade sitting in the back room looking at income documentation. Requesting the W-2 data directly from the IRS not only eliminates the possibility of tampering, but provides the information in a standardized digital format to facilitate electronic processing.