Financial Review discussion

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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
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Old May 27, 18, 6:19 am
  #766  
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Originally Posted by clockhand View Post
Time to time I do have statements closed with ~$100k balance.
Probably smart for them to check-in from time to time, given they have six figure exposure if things suddenly go south. As it seems you're aware, this likely has nothing at all to do with you personally.
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Old May 27, 18, 7:26 am
  #767  
 
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Originally Posted by Kacee View Post
Probably smart for them to check-in from time to time, given they have six figure exposure if things suddenly go south. As it seems you're aware, this likely has nothing at all to do with you personally.
They use various algorithms to analyze your risk. So when you' spending behavior changes from $100K per month to $10K that can certainly alert them as you still have access to extremely high credit line.
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Old Jun 2, 18, 12:05 am
  #768  
 
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Got hit with FR after spending about $3K on SPG points on the last day of the 35% bonus, missed their call (thought it was spam).
I placed my income about half way between my household total income, so I'm planning to win on this end if they were worried I couldn't pay off the amounts. This was quite embarrassing as I'm traveling and all of a sudden can't use my cards (like SPG Biz).
Definitely will leverage this to get credit limit increases / threat of CFPB.
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Old Jul 5, 18, 12:29 am
  #769  
 
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If AMEX decides to close all accounts, does the member have time to transfer MRs out?
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Old Jul 10, 18, 5:36 pm
  #770  
 
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In the UK here, but just out of interest, what happens if you refuse to provide the documentation that Amex want? Presumably they just shut your account? Do they give you the chance to pay the remaining balance?
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Old Jul 10, 18, 5:38 pm
  #771  
 
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Originally Posted by c1223 View Post
In the UK here, but just out of interest, what happens if you refuse to provide the documentation that Amex want? Presumably they just shut your account? Do they give you the chance to pay the remaining balance?
AMEX will expect you to pay the remaining balance, of that you can be certain. The accounts do not need to be open for one to pay off the balance.
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Old Jul 13, 18, 3:12 am
  #772  
 
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What is the deal with a financial review and manufactured spending? I was moronic and churned a third of my annual income in a month. They'll see the cash coming back into my current account when I provide statements?
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Old Jul 13, 18, 9:47 am
  #773  
 
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Originally Posted by c1223 View Post
What is the deal with a financial review and manufactured spending? I was moronic and churned a third of my annual income in a month. They'll see the cash coming back into my current account when I provide statements?
In my experience (2x FR with business accounts) they want to make sure you have the capital to cover the charges. If you told ANY bank that you make 100k/yr and charge 50k in one month on a personal card, of course they are going to check in to it.

Both times I faxed in 90 days worth of bank statements and followed up about 48 hours later. Guy gets on, looks at it, sees the cash flow / means to pay it off and releases the accounts. Not a single time was I ever asked about my charges, where my income comes from etc.

I am not sure how you are manufacturing your spend, but unless it somehow shows that the money you are receiving is directly from AMEX, then its not really their place to ask where the income comes from.
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Old Jul 13, 18, 11:07 am
  #774  
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Originally Posted by c1223 View Post
....They'll see the cash coming back into my current account when I provide statements?
Originally Posted by Dsm2m2 View Post
In my experience.....
Note that c1223 appears to be in the UK. American Express policies and practices may be different, as is the regulatory environment.
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Old Jul 14, 18, 11:39 am
  #775  
 
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Amex FR - Won't accept payment...?

My account is currently under financial review. I've only just sent them the required information, so still awaiting the outcome. Anyway, in the mean time, one of my cards has a balance due. Luckily it's not until the end of the month. I'm just trying to put my mind at ease, as it's the weekend, and I cannot contact Amex because you're only allowed to speak to the financial review team.

The "new" look account shows that a direct debit will come out of my account but shows as 0. When I look at the old "make a payment" page it shows that the direct debit will come out with the full balance of the statement (and shows the balance). Slightly confused!

I tried to make a payment with my debit card attached to the account and it failed. (Nothing to do with my debit card provider).

I imagine they'll be able to answer my question on Monday, but I assume the direct debit will actually come out with the full value of the statement? If not, and the card payment doesn't work, I assume sending a bank transfer via FP/BACs will be the only way to make sure they receive the money. I have the money and I want to pay off my credit card but they don't seem to want to let me!
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Old Aug 4, 18, 11:40 am
  #776  
 
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4506T Request out of nowhere?

I've been a card member in good standing for some thirty years, only to discover my account temporarily suspended pending a financial review of my tax returns. I'm pretty pissed off about it and may not even respond as I don't appreciate the way it's been handled and I was on the fence about keeping the card anyhow; it's the SPG which is being transitioned now. Anyhow, I'm told my account could be closed permanently if the tax form is not received within 2 weeks. I was also told that this was just "standard procedure" and they're updating records and requesting the same from all accounts, which sounds pretty suspicious/doubtful. I can't believe that they've frozen my account in the interim and that they did so w/o reason warning or apology. Just wondering if anyone else has experienced this?
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Old Aug 4, 18, 11:42 am
  #777  
 
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35 year Amex member, 15 Platinum.
Never heard of such a thing.
Back checking every member, and putting their account in suspension while they're doing it doesn't even sound plausible.
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Old Aug 4, 18, 11:50 am
  #778  
 
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I assure you it's happened. Logged in this a.m. to find an alert: "Charging suspended. Please call 1-800-678-0738 if we haven't already spoken with you."

Had no idea what it was about until I ended up on a recorded line w/ someone from lending asking me to update my profile info (tel, email, address, work info, etc) and then was informed that I needed to submit a tax form to restore the account. When asked why account use has been suspended, the rep acknowledged that I had a perfect track record, no missed or late payments, etc. but also indicated that there was no financial records on file and that it's the biggest factor in any line of credit and AmEx is now doing this w/ all accounts and I'm not being singled out. It sounded like BS to me.

Here's what it says in the email I received:

"American Express recently requested that you complete and return a tax form called the 4506T in order to conduct a financial review. The 4506T authorizes American Express to retrieve tax information. We find the review process to be a necessary requirement in order to conduct our business in a prudent and successful manner.

Detailed instructions on how to fill out the 4506T are attached, as well as in the American Express Fax Cover Sheet. In order to avoid closure of the account, it is critical that this information be completed correctly and faxed back to us within the deadline discussed by the American Express representative."
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Old Aug 4, 18, 12:06 pm
  #779  
 
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There is plenty of stories of this on another forum where people with low credit scores hang out. It is usually triggered by a sudden surge in spending, suspicious spending, major changes on credit reports, newly opened accounts, etc. Does any of that apply to you?

What is the credit line on the account in question? How does it compare to your total income as known by Amex?

No matter what, you essentially have two choices. 1. You comply, everything checks out and your accounts are reinstated. 2. You ignore the request and your accounts will be closed. There is no third option. It all depends on how much you value the accounts in question, if you want to keep it you will have to comply.
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Old Aug 4, 18, 12:18 pm
  #780  
 
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Originally Posted by blaz View Post
suspicious spending
This could include manufactured spending. The reason they are so concerned about this is that not everyone uses MS just to accumulate benefits. It's also used as a form of free "payday loan" for people that are in financial difficulty, and often occurs prior to any trouble appearing on a credit report or payment history.

No matter what, you essentially have two choices. 1. You comply, everything checks out and your accounts are reinstated. 2. You ignore the request and your accounts will be closed. There is no third option.
There may be only 2 choices, but there is a third combination: you comply, but the information that comes back from the IRS differs substantially from what you've told Amex about your income. That too can result in account closure.
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