AMEX Financial Review - Unique Situation
Jan 23, 2012, 3:34 pm
#1
Original Poster
Join Date: Oct 2011
Posts: 31
AMEX Financial Review - Unique Situation
Hello,
I just got the dreaded financial review call for an unusually high transaction on the AMEX Gold Biz card I just opened. I also have a Blue Cash and a Plat Delta AMEX card. They placed all cards on hold while they asked for the tax form.
My question is this - can I just cancel the business card during the process? I know they are going to shut me down - I only reported $5,000 in personal income last year but my parents supported me substantially / my current employer reimburses me for lots of expensive plane tickets.
I don't care about loosing the Biz card, but I don't want to loose the Delta Amex card.
Can I cancel the business card now and send them my tax returns with bank statements and a statement about my employer's reimbursement to avoid a bigger hassle of getting ALL cards shut down? They were only asking about my business card.
I just got the dreaded financial review call for an unusually high transaction on the AMEX Gold Biz card I just opened. I also have a Blue Cash and a Plat Delta AMEX card. They placed all cards on hold while they asked for the tax form.
My question is this - can I just cancel the business card during the process? I know they are going to shut me down - I only reported $5,000 in personal income last year but my parents supported me substantially / my current employer reimburses me for lots of expensive plane tickets.
I don't care about loosing the Biz card, but I don't want to loose the Delta Amex card.
Can I cancel the business card now and send them my tax returns with bank statements and a statement about my employer's reimbursement to avoid a bigger hassle of getting ALL cards shut down? They were only asking about my business card.
Jan 23, 2012, 4:03 pm
#2
Join Date: Nov 2010
Location: Bellingham, WA
Programs: AMEX Platinum, Delta Gold, Alaska Air MVP Gold
Posts: 449
Why not just send them what they want and tell them the situation? Although $5k in income, but being reimbursed for "lots of expensive plane tickets" sounds so shady you might as well just cancel them all and move on.
Jan 23, 2012, 4:09 pm
#3
Join Date: May 2011
Posts: 69
Amex does not like to see that your parents are supporting you with only $5000 personal income and "expensive tickets"
Most likely they will cancel all your cards for insufficient income.
Good luck
Most likely they will cancel all your cards for insufficient income.
Good luck
Jan 23, 2012, 4:51 pm
#4
Join Date: Aug 2008
Posts: 84
Cancelling your cards is a bad idea.
If you ever want to reapply for an Amex the process will be much more painful than a Financial Review.
If you ever want to reapply for an Amex the process will be much more painful than a Financial Review.
Jan 23, 2012, 5:11 pm
#5
Original Poster
Join Date: Oct 2011
Posts: 31
I am an Admissions Counselor and am on the road 4 months out of the year, often internationally. My employer reimburses me for over 30k a year in expenses for tickets, hotel rooms and food.
Crossing my fingers the updated financial picture documents will give me a clear FR.
Crossing my fingers the updated financial picture documents will give me a clear FR.
Last edited by fumarelcigar; Feb 5, 2012 at 7:29 pm
Jan 23, 2012, 6:17 pm
#6
Join Date: Aug 2007
Location: SAN
Programs: AA PP, SPG Plat, Hyatt Diamond, Nat ExecElite, WN CP
Posts: 419
an unusually high transaction
What did you buy? If you don't mind me asking...just looking for another data point
What did you buy? If you don't mind me asking...just looking for another data point
Jan 23, 2012, 6:24 pm
#7
Join Date: Oct 2007
Location: Frozen in Carbonite
Programs: UA Aluminum 0.6MM, Bonvoy Life Sentence, Hyatt Eliteist, AA Super Plutonium
Posts: 2,878
Were you honest about your income on the application for all the cards? If not...kiss them goodbye.
Jan 23, 2012, 6:28 pm
#8
Original Poster
Join Date: Oct 2011
Posts: 31
I was 100% honest with them with income because when I spoke to an American Express rep before I applied, they told me to put down total household income, including my parents (whom I lived with at that point).
I bought two espresso machines and a set of knives on Bed Bath and Beyond in a plan to sell them discounted, take the hit but earn my 75,000 MR bonus.
I bought two espresso machines and a set of knives on Bed Bath and Beyond in a plan to sell them discounted, take the hit but earn my 75,000 MR bonus.
Jan 23, 2012, 7:20 pm
#9
Join Date: Aug 2011
Posts: 866
Have you paid for this large purchase? If so, I think you can make a strong argument that they don't face a significant risk with you and maybe they only decrease your credit line for a while.
If you haven't paid, I think you might have to admit this review is valid and be amazed (as I am) that they caught this so quickly.
If you haven't paid, I think you might have to admit this review is valid and be amazed (as I am) that they caught this so quickly.
Jan 23, 2012, 8:32 pm
#10
Join Date: Nov 2002
Posts: 1,236
Don't forget if you or they close down your account your MR points evaporate, so move the bonus points before the account closes.
$6400 worth of espresso machines to sell at a loss is not something I would buy expecting to get $750 worth of points for.
What is the black market on espresso machines now days?
$6400 worth of espresso machines to sell at a loss is not something I would buy expecting to get $750 worth of points for.
What is the black market on espresso machines now days?
Jan 23, 2012, 8:56 pm
#11
Join Date: Jan 2012
Programs: AA Platinum, Hyatt Globalist, Hilton Diamond, Bonvoy Titanium
Posts: 174
You mean the bonus points that you got because of the credit card promotion, right? MR points do not "evaporate" when you simply close a card and move on, correct?
Jan 23, 2012, 11:11 pm
#12
Join Date: Jun 2010
Location: NYC
Programs: SPG Plat, Emerald Exec., PC Plat, AA, CO, DL, UBS Charter Card, Palladium Card, Amex Plat
Posts: 1,694
Yes they do. If you don't have an open Amex charge account, you no longer have a Membership Rewards account either. Always clear them out before shutting your account.
Jan 24, 2012, 12:09 am
#13
Join Date: Nov 2010
Location: Bellingham, WA
Programs: AMEX Platinum, Delta Gold, Alaska Air MVP Gold
Posts: 449
Your situation sounds much better after you gave us some details. Explain it that way to Amex and you'll probably be fine.
Jan 24, 2012, 1:47 am
#14
Join Date: Feb 2011
Posts: 208
If you "fail" a FR, AmEx will close all of your cards; closing the one card that triggered it will not help.
If you know that you will fail a FR, you may as well close the cards yourself, that way at least it will not show on your Credit Report as "Closed by institution".
Once AmEx closes your accounts, you have 90 days to use your MR points, and it will only be doable on phone, online you won't be able to access your points. (PM me with email if you want me to send you a scan from AmEx saying as much).
If you just want to buy time on an FR, while you are trying to get the points out, fill out the 4506T form as best you can, but put a different address than your own. It will buy you about two weeks.
As of October 1st Federal Law requires that CC companies do not count "household" income, so even with your explanation, with a $5k income you are almost certain to fail the FR. (See here for report on change.)
Don't ask how I know all of this!
GL with your FR!
If you know that you will fail a FR, you may as well close the cards yourself, that way at least it will not show on your Credit Report as "Closed by institution".
Once AmEx closes your accounts, you have 90 days to use your MR points, and it will only be doable on phone, online you won't be able to access your points. (PM me with email if you want me to send you a scan from AmEx saying as much).
If you just want to buy time on an FR, while you are trying to get the points out, fill out the 4506T form as best you can, but put a different address than your own. It will buy you about two weeks.
As of October 1st Federal Law requires that CC companies do not count "household" income, so even with your explanation, with a $5k income you are almost certain to fail the FR. (See here for report on change.)
Don't ask how I know all of this!
GL with your FR!
Jan 24, 2012, 7:04 am
#15
Original Poster
Join Date: Oct 2011
Posts: 31
Thanks for all your inputs! The large transaction on my business card is still listed as pending, and the FR rep (who was incredibly short and rude, even though I was so polite and understanding, and didn't even object to them shutting down my three cards) told me it would not go through until the FR was over.
I just faxed 26 pages of material to them today. Crossing my fingers!! I have had the same 20k limit on my AMEX Delta card since I was 18, and have never paid late, missed a payment and always pay 100% in full. If they decide to cut my credit, I almost feel like saying, "and you think my 24 year old employed self is less responsible with a 20k credit line than an 18 year old high school student?"
I just faxed 26 pages of material to them today. Crossing my fingers!! I have had the same 20k limit on my AMEX Delta card since I was 18, and have never paid late, missed a payment and always pay 100% in full. If they decide to cut my credit, I almost feel like saying, "and you think my 24 year old employed self is less responsible with a 20k credit line than an 18 year old high school student?"
