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Don't Leave Home; Your Credit Card is on Hold
msnbc.com ^ | March. 8, 2009 | Joel Grover

Posted on 03/09/2009 4:50:01 AM PDT by christx30

If you have an American Express card, beware: your card could be put on hold at any moment, even if you think you've made all your payments on time. That means, you won't be able to charge anything on your Amex card.

That's exactly what happened to Cathy Jones, a businesswoman with three Amex charge cards. She got a call from Amex last week saying her cards were now on hold, while the company did a financial investigation to make sure she could pay her bills.

Jones was baffled. She's been an Amex cardholder since 1989 and can't remember being late on a payment. So, to get some answers, Jones and I got on the phone, and called the customer service number on the back of her card.

An Amex representative in New Delhi, India, said because of the bad economic times, American Express is now doing financial investigations of thousands of cardholders. The rep said Amex is insisting these customers fill out an IRS form 4506-T, authorizing the company to get their tax returns for the last three years. The rep told us if Jones didn't fill out the IRS form, they'd cancel her charge cards for good, within five days. And here's the part that concerned Cathy Jones: The rep said these "investigations" were being done, not in the US, but in India.

(Excerpt) Read more at msnbc.msn.com ...


TOPICS: Business/Economy; Front Page News
KEYWORDS: americanexpress; amex; credit; creditcards; debt; economy
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To: LibLieSlayer

I can’t speak about AMEX, but many of the major credit cards are unilaterally raising rates and applying it to the balance. It’s bad news.

Of course, this “hold” may apply to the charge card of Amex, which naturally is different than their credit cards.


61 posted on 03/09/2009 8:43:36 AM PDT by Unlikely Hero ("Time is a wonderful teacher; unfortunately, it kills all its pupils." --Berlioz)
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To: christx30

“Our credit cards come with a FREE extra benefit!... An intrusive and thorough investigation into every aspect of your personal finances, complete with an in-house audit of your tax returns!!”

This is a company that deserves to go out of business.


62 posted on 03/09/2009 9:35:31 AM PDT by Deo volente
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To: Unlikely Hero
I am so happy I ripped my credit cards up 15 years ago... my Amex is simply a charge card... balance due every month. I agree with what you say about the CC industry.

LLS

63 posted on 03/09/2009 9:41:52 AM PDT by LibLieSlayer (hussein will NEVER be my president... NEVER!)
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To: LibLieSlayer

I hope I will be able to rip them up soon—but I have a lot to pay off first! :)


64 posted on 03/09/2009 9:52:52 AM PDT by Unlikely Hero ("Time is a wonderful teacher; unfortunately, it kills all its pupils." --Berlioz)
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To: beaversmom

No official notice. I did cut and paste this article in an e-mail and sent it to hubby this AM (he’s on the road.)


65 posted on 03/09/2009 10:02:44 AM PDT by GWMcClintock ("When the foundations are being destroyed, what can the righteous do?" Ps. 11:3)
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To: Pablo64

No, he really has no choice. The company pays the bills directly, and all we see is an itemized statement. Amex is the only company that the company holds a contract with to do this, ergo.....


66 posted on 03/09/2009 10:05:11 AM PDT by GWMcClintock ("When the foundations are being destroyed, what can the righteous do?" Ps. 11:3)
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To: christx30
I had an Amex card for something like 20 years. I never had a really huge balance. But 4 or 5 years ago we charged some stuff while on vacation. I had forgotten that we went to online billing just before that so when I never got a paper bill I just plain forgot about it.

A few months later they started calling. I paid it off within like 4 or 5 months but then they started lowering my credit limit after every payment. Like a year ago I made another fairly big charge and paid if off over another 3 months. After I paid it off they canceled my account.

No great loss for me. I didn't use it all that often. But they took 19 years of good payments and good use and threw it away over less than a year of problems. Kind of shortsighted if you ask me.

67 posted on 03/09/2009 10:17:27 AM PDT by DouglasKC
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To: BubbaJunebug

Is this the comment you stand by?

“3 AMEX cards...no reason for that”

I cited the reasons, you did NOT refute them!


68 posted on 03/09/2009 11:45:06 AM PDT by G Larry (Obama's plan = "STEALING FROM THOSE WHO CREATE THE JOBS!")
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To: GWMcClintock
My point was that if it goes against his principles he does have a choice. He can choose not to have one if his name is in any way attached as being ultimately responsible for payment (which is typical with AmEx). I realize that perhaps that would require him seeking different employment if his company was making that a condition of his job, but it is still a choice. Just not a very likable one.

If the company gets the cards in the company's name or say the name of the CFO or such, and then issues it to him for use on the company behalf, that's a different story. Then he is not on the hook should something happen to the company or should they choose to deny an expenditure. I have heard that AmEx has a policy that requires whoever the authorized user of the card is to fill out an application in their name, even though it is technically a "company card". That is their way of trying to collect on debt if a company suddenly goes under.

69 posted on 03/09/2009 1:51:54 PM PDT by Pablo64 (Political Correctness is a DISEASE. <==> TRUTH is the CURE.)
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To: Unlikely Hero

I know where you are... been there... cut them up and pay them off asap... even if it takes a while. That interest should be illegal... mostly 21% and up! Good luck!

LLS


70 posted on 03/09/2009 2:35:09 PM PDT by LibLieSlayer (a)
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To: Tainan

FrogDad and I have 3 AmEx’s.

Our regular Gold card, an actual AmEx credit card, my corporate AmEx card.

Credit score very high. No balance on any of them, had the Gold card for at least 15 yrs. There is a msg on my phone machine to call our AmEx rep for important acct change info.

Will see what that’s about...


71 posted on 03/09/2009 3:26:32 PM PDT by FrogMom (No such thing as an honest democrat!)
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To: Pablo64; GWMcClintock

I am very wary of using personal cards for business anymore. I got stuck with ten grand of travel expenses from my last job when they changed the travel policy, but didn’t tell us Americans.

After that, I only used to company credit card, or didn’t go. Part of the reason I am now at a different company.


72 posted on 03/09/2009 5:42:31 PM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: Publius Valerius
Thanks for taking the time to enumerate the reasons why one would chose to keep an AMEX card.

Thats exactly why I have done so. Its just a good deal. I've used Amex help for a number of issues world-wide. They have always made a best effort to help and solve the problem. I was talking about these 'extras' with someone years ago and they made the comment that it was like having a 'Concierge' on call anytime/anywhere. Pretty close to that...;)
73 posted on 03/09/2009 5:53:29 PM PDT by Tainan (Where's my FOF Indicator?)
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To: GWMcClintock

I have two cards through my employer and the only thing I’ve received is a rate increase letter on late-payments. I don’t make the payments so I didn’t care.


74 posted on 03/09/2009 6:52:44 PM PDT by eyedigress
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To: LibLieSlayer

Interest like that used to be illegal. We used to have usury laws in this country that made high interest from banks illegal. But that was pretty much wiped out by deregulation of banks in 1980. I’m usually in favor of deregulation, but credit card companies really screw customers a great deal of the time.


75 posted on 03/10/2009 5:28:21 AM PDT by christx30
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To: christx30

Yes... high rates are theft.

LLS


76 posted on 03/10/2009 6:46:34 AM PDT by LibLieSlayer (hussein will NEVER be my President... NEVER!!!)
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