My Experience With Amex’s Financial Review
by JSteeleIt should not have come as a shock. I had read about it in FlyerTalk. I had opened up some new business and reward cards for the sign up bonuses. I had seen the stories of Amex’s financial problems.
It Was Still A Shock
One day I get a very garbled, almost innaudible recording on my home answering machine, claiming to from American Express. A short time later, I get a call on my cell phone, from the same person. Not only does this person speak with a thick foreign accent, Asian, I think, but it is like he is wispering though a tube. I immediately think that this is a fraudulent attempt to get me to turn over personal information. When the caller invites me to call the number on the back of my card, and ask for his extension, I do so. If that wasn’t enough to convince me this was for real, all of my American Express cards suddenly stopped working.
What Do They Want
In my case, they wanted me to fill out and fax to them an IRS form 4506-T. This would give them access to my tax returns for last year. Supposedly, there is a financial review clause somewhere in the fine print of your cardholder agreement that says that they may request such info.
Their Process Stinks
Once you realize that the barely discernable foreign speaker calling you actually does represent American Express, and your cards don’t work, you realize that this is a terrible possition to be in. Fortunately, I have backup Visa and Mastercards, but the rewards I earn there are not as valuable to me. Automatic payments can be disrupted, not to mention travel plans.
How Long Does It Take?
They claimed they would have this all resolved within a week, but it ended up taking three. First, I sent the form back with my wife’s social security number, but not her name. Amex, figuring that her name was top secret while her Social was not, called me back a few days later to tell me to fax the form in again, with her name, that they have in their records, printed on the form. From then, we patiently waited another two weeks. Finally, I called to follow up, and what a coincidence, they had made a decision.
The Verdict
As a customer of theirs for years, who has always paid his bill on time and in full, somehow they saw fit to retain me as customer. It only took them three weeks to reach that conclusion.
What’s Going On?
At some point in this process, I got a supervisor on the phone and gave him a piece of my mind. The supervisor was sympathetic, and explained that these Financial Reviews were completely computer driven and out of his control. All he could do was promise to process my paperwork quickly.
What’s The Problem
Some people object to the Financial Review on a matter of principal. They do not think that Amex has the right to such personal information. I disagree. When I applied for their card, I stated my income, and they are welcome to verify it. The part I object to is how they do it. First I applied for their Starwood Business card and their Delta Skymiles cards. Then they approved me and sent me the cards. Finally they cut off my account and sent me to the Financial Review team. If they didn’t want me to have the cards, they should not have approved them. If they had asked me for supporting documentation before extending me further credit, that would have been reasonable. Ironically, this whole time I am getting letters in the mail telling me to activate my cards and spend more money!
What To Do When It’s Your Turn
First, despite their rudeness and continued mailings encouraging you to use your now suspended account, don’t take it personally. Amex is suffering financially, not you. A computer is making the call on this, not a human. Like a bleak science fiction movie, the machines are in control, and there is nothing that the humans can do other than comply.
Next, fill out the form and send it in. Amex knows where I live, where I shop, and where I travel to. They also know what I claimed my income to be when I applied for the card. What is the problem with them knowing what I told the IRS when I paid my taxes?
Finally, reconsider your relationship with Amex. I don’t condone them treating their customers this way. I am expecting some very lucrative rewards from transfering my Starpoints to Delta as part of their major promotion that has since been withdrawn. Between my Starpoints transfers and my sign up bonuses, I should go from 0 to 300,000 SkyMiles in just a couple months. If it wasn’t for that, I might have just told them to get lost.
Tomorrow, I will share with you my letter of complaint to Amex’s executive customer service.
January 5th, 2009 at 13:38
[...] American Express decided he is now “low-class” and lowered his spending limit! And now they’re requiring proof of income or else they’ll suspend his [...]
January 5th, 2009 at 15:57
There’s a limit. What’s between you and the tax man is between you and the tax man. Federal law exists to protect your privacy.
If I get a call like this from AMEX, American Express will instantly lose a customer. There is not a CHANCE I would give them access to my income tax statements! The fact that I’ve done business with them for centuries is beside the point. They have no right to ask you for private information of that nature. If you have never defaulted on a bill, then they should continue to do business with you. If you have made a late payment or missed a payment, then they should cancel your card. That’s easy.
Most vendors will take cash or checks. Many would prefer to do so, especially where American Express is concerned, since that company zings them with very high transaction fees. Because of this, more retailers accept Visa and MasterCard than will take American Express. The only serious problem dropping AMEX would cause is that it complicate buying gasoline at Costco, the cheapest in town–while you were shopping in the store, you’d have to buy a cash card to cover your purchase at the pump.
I’d be sorry to lose the cash back from AMEX, but given a choice between that and letting them shove a probe up my rear end, the cash back would be go, right now.
Matter of fact, the more I contemplate what you’re telling us, the more I feel inclined to start using cash again. You’re right: credit card companies gather enough information about us to deduce every detail of our personal lives. Who needs that?
January 19th, 2009 at 09:10
I think it is time for us, the customers of AMEX to shut it down. If any of us had a spouse that treated us like AMEX does, we would see them in divorce court and renew our life.
I say, everyone should pay the minimum payments, forcing AMEX to dry up and go down, and then deal with resolving our debt with the government or whoever takes them over. It would be better than what we have now. The way AMEX is lowering our limits AND raising our rates, the damages are done. No one is going to recover from this soon,at least the way the “FICO game” is currently designed. If you are not having any complaints with AMEX, just wait, you will or you currently have issues that you are not aware of. An AMEX customer service person told me, AMEX is making changes across the board. They do not want to get sued for discrimination. So listen up ladies and gentlemen, it is time to act as a group and control who we do business with and how we should be treated. I say this with a bit of humor, but I am dead serious about minimum payments. If you pay more, it enables AMEX to raise your interest rate higher and less of your payment goes on the principal anyway. AMEX has already requested the government to take them over like a couple of the brokerage firms. We, the AMEX customers, would get a better and more reasonable resolution when that happens. The less money AMEX gets each month, the sooner they are out of our lives as the current company. Think about it.
February 16th, 2009 at 19:59
This happened to me today, same story as above…. i have never defauted or paid late. Spend around and pay off 5 to 10 k a month on my platinum business card….. I just don’t know what to do. Amex has the right to reduce credit, but tax returns and more for no reason….. i don’t understand. AMEX has literally ruined my life and credit. DO NOT DO BUSINESS WITH THEM
April 24th, 2009 at 18:19
I have had a VISA card for over 20 years and four months ago I decided to get an AMEX card from Costco. BIG mistake. First they lowered my limit after I did a balance transfer and then they cancelled my card after I complained about it. When I tried to resolve this issue, it was like a SNL skit because I was transferred to six different customer service idiots. My credit is perfect and this was uncall for.
Stay with VISA!!!!