American Express card going Past Due - What will happen??

[Mich778]

I have an AMEX gold card which must be paid in full. Payment due date is usually the 19th of the month, but you can pay up until the closing date before being considered past due.

So as of now my balance is over $3,400. I don't have the money to pay and it will go past due after Dec 4. Charging privileges are already suspended.

I lost my job in October. Now working as a 1099 contractor arrangement but won't get paid for November until around mid December. Then the bank will put a 5-10 day hold until all the funds are available.

Will they automatically cancel my card or just charge me a late fee of 2.9% of the past due amount as stated on the application and put a negative 30 day late on my credit report??

Right now, I barely have enough money to pay minimums on other credit cards plus regular expenses

[wayne-o]

american express can be pretty aggressive. Call them and tell them what you told us. While they may not restore charging privileges until they get their money, they might not cancel card if they know what is going on.

Amex always talks about not having a pre set spending limit, but they do suspend charges if you get above what they think you can pay!

[Mich778]

american express can be pretty aggressive. Call them and tell them what you told us. While they may not restore charging privileges until they get their money, they might not cancel card if they know what is going on.

Amex always talks about not having a pre set spending limit, but they do suspend charges if you get above what they think you can pay!

I can't believe I got to this point. I have been going thru the apartment trying to match receipts to items that haven't been used (mostly clothing) and that can be returned. The $3,400 balance is down $5,500 which was the 'Pay Due' amount when the statement cut off Nov 4.

AMEX has already called me on my cell phone, my current work phone number and even my parents house to tell me that I must call them to 'discuss an important business matter'. I think that they have a record of every number that you call from and save that info even if you don't have that number on your contact info.

They won't let me defer ANY charges because my OPTIMA account is at the limit of $4,900.

The terms of my contract gives the company 30 days to pay me (stated 'Net 30') but they told me I should get paid in the next week or so.

If I pay it right before December 19 which would be the 30th day past due, will they make a negative entry to my credit report??

[wayne-o]

I have no way of knowing if they will make a negative entry or not. If its technically not 30 days past due, they shouldnt though. Call them, tell them when your going to pay and about the change of jobs. Maybe they will quit calling you if they dont think your trying to dodge them.

[Mich778]

I have other issues

I have no way of knowing if they will make a negative entry or not. If its technically not 30 days past due, they shouldnt though. Call them, tell them when your going to pay and about the change of jobs. Maybe they will quit calling you if they dont think your trying to dodge them.

I will say it outright -- I am a compulsive shopper with Bipolar Disorder after a series of misdiagnosis -- hense the outrageous credit card debt in total.

You may not understand, but if someone is misdiagnosed with depression & put on a high dose of Anti Depressants (80MG of Prozac in my case for close to a year), it can trigger bad manic reactions.

I DOUBT they accept the above explanation because they will think I have no intention of paying.

My AMEX statement looks like a page from the phone directory, PAGES with Charges & Credits.

What I would do (to feed my habit) is compulsively spend on whatever open line of credit I had & then scramble to return.
When you return something, they deduct from the 'Pay Now' amount not the Outstanding balance owed for the next month.

[wayne-o]

your right they might not accept that explanation, but the one about the job they probably will.. Bottom line, they want their money, if your gonna be able to pay it before the due date you should be fine.

[CATCHMEIFYOUCAN]

Just my 2 cents, I had AMX at one time .. I stopped paying them for the longest time, well actually I would literraly write out checks for a penny just to keep them at bay .. eventually the account got sold to the bottom of the pit feeders and they tried to negotiate and re-negotiate payments, eventually in half of what I owed, I just kept saying know and eventually declared BK. This was 12 years ago or so, funny thing is like 2 years after discharge I would get letters once inawhile claiming to be from attorneys of AMX offering to settle for less. NO WAY !

Best of Luck, Catchmeifyoucan

[Hollyhomemaker]

When you are able to pay your bill, Amex is going to send you a financial review request letter. It could be a simple review where they only ask you to send in your most recent paystubs or whatever shows your income, or they could do a full financial review where they send you an IRS form to sign where you give them full access to your most recent tax return(s).

IF they have found that you either mistated your income or are no longer making the income you stated on your application they will cancel your card, especially in light of the recent late payment.

They are doing more and more financial reviews, even to long time customers who have always paid on time. For people who've been with them a long time with no lates or anything and Amex finds out that their income is not what was stated on the c.c app that customer will get either a massive credit line decrease or suffer an account closure.

But with your late payment I see an account closure as almost a sure thing. Good luck to you. Amex is extremely unforgiving, and frankly with their purchase interest rates people can do a lot better than Amex Ive got 2 Amex's right now but there are other c.c's with better rates, just not the "prestige" of an Amex.

[allavdj]

I've had some recent dealings with AMEX and I agree with the others: AMEX can be VERY aggressive with there collections and the company they use (United Recovery) is relentless. If you let it go to United Recovery they will call you non-stop, you family, your work, etc. Unfortunately, United doesn't buy the debt, only acts as an "in-house" collector so C&D letters don't work.

Trust me on this one though, they will harass and your family/friends/work/etc until you talk to them, once you talk to them they will probably chill out a little (they did for me, I only get a call once a month to take care of the payment).

[treehugger1]

Any company that acts as a third party debt collector comes under the FDCPA. You bet you can send them a C&D letter. Send it return receipt and keep the green card when you get it back. The FDCPA does not simply apply to "outside" collections. I'm assuming United Recovery is in the debt collection business (and this is their principle purpose.)

From the FDCPA:

(6) The term "debt collector" means any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another. Notwithstanding the exclusion provided by clause (F) of the last sentence of this paragraph, the term includes any creditor who, in the process of collecting his own debts, uses any name other than his own which would indicate that a third person is collecting or attempting to collect such debts. For the purpose of section 808(6), such term also includes any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the enforcement of security interests. The term does not include --

(A) any officer or employee of a creditor while, in the name of the creditor, collecting debts for such creditor;

(B) any person while acting as a debt collector for another person, both of whom are related by common ownership or affiliated by corporate control, if the person acting as a debt collector does so only for persons to whom it is so related or affiliated and if the principal business of such person is not the collection of debts;

(C) any officer or employee of the United States or any State to the extent that collecting or attempting to collect any debt is in the performance of his official duties;

(D) any person while serving or attempting to serve legal process on any other person in connection with the judicial enforcement of any debt;

(E) any nonprofit organization which, at the request of consumers, performs bona fide consumer credit counseling and assists consumers in the liquidation of their debts by receiving payments from such consumers and distributing such amounts to creditors; and

(F) any person collecting or attempting to collect any debt owed or due or asserted to be owed or due another to the extent such activity (i) is incidental to a bona fide fiduciary obligation or a bona fide escrow arrangement; (ii) concerns a debt which was originated by such person; (iii) concerns a debt which was not in default at the time it was obtained by such person; or (iv) concerns a debt obtained by such person as a secured party in a commercial credit transaction involving the creditor.





Send in your C&D and when they start calling after you have the green card mail receipt, and they have made a couple of calls, start looking for an attorney who will take your case. Your contract is with AMEX, not United Recovery! You also want to check your state statutes for any additional debt collection laws. In my state, it is unlawful, after you inform a creditor (not a debt collector) that you cannot receive phone calls at your place of employment, other than the one call they are allowed to make each week (Oregon Revised Statutes.)

Now, it could very well be that as soon as they receive your C&D a lawsuit will begin. Just depends on what you consider your choices for dealing with your debt.

As always, I offer only my opinion, but it should be easy to get an attorney to give you a legal opinion.

Best to you.

[treehugger1]

FYI - I just checked my state's consumer and corporate webpage, and a search in my state reveals the United Recovery is a licensed collection agency in Oregon.

UNITED RECOVERY SERVICE INC

5196 MAIN ST License No: 40030
SPRINGFIELD, OR 97478 Phone: (541) 726-0643 Start Date: 07/01/1981
Renewal Date: 06/30/2008


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UNITED RECOVERY SYSTEMS LIMITED PARTNERSHIP

5800 N COURSE DR License No: 49092
HOUSTON, TX 77072 Phone: (713) 977-1234 Start Date: 08/04/2004
Renewal Date: 08/31/2008


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Unless you are talking about a different United Recovery, it appears that at least my state lists them as in the debt collection business.

[treehugger1]

More insight:

http://en.allexperts.com/q/Collections-Law-912/AMEX-Nationwide-United-Recovery.htm

Just google United Recovery and AMEX and you'll come up with all kinds of insight.

[treehugger1]

Sorry I am on a rant here. But, when someone claims to be "exempt" from the FDCPA, I go out of my way to see what I can find out.

http://dockets.justia.com/

Go to this website and type in United Recovery and start going through some states and you will see that United Recovery has been sued over and over again under the FDCPA. Unless this is a different United Recovery, then I would make them work for any contact with you, if you desire they do not contact you.

I just discovered a very interesting line in my state's statutes. The law clearly states that the CA must always provide their correct business address. A while back I received a dunnign letter from a company licensed here, but the address they used in licensing was different than the address in the dunning letter. The next time this occurs, I'm sending more letters to my state justice department and complain, complain, complain.

[roki]

I have had allot of experience with Amex i had the Gold Card, Platnium card and the Coporate card. I had a friend working there who pretty much showed me the tricks. Amex closes their billing cycles every 30 days so that means that if you get bill you must pay it before the billing cycle ends or you will get late fees. For an example you get your bill at the begining of the month that was the previous months bill so you have to pay it before the bill cycle that you are charging right now closes. That is why your closing date could be the 14 or 15 of every month but your bill will say due date the 5th. What american express does is that they put that buffer so if you mail it gets to them before cycle closes. Now you have gone over the 30 days cycle that means that you owed previous months amount your current amount and a late fee. If you don't let the payment go late over 45 days which is 15 days over the 30 day cycle your card will be Blocked!!!!! they wont cancel the card but they will freeze it so you don't make anymore charges. Also be reminded that after 45 days late they will start to call you and call you. Your card is blocked and frozen it cannot be use and they are calling you if you let it get late over 60 days they will send you a letter that you have 15 days to pay all your debts including 2 late fees or they will cancel the card forever.After 75 days your card will be cancel and you will be place on Amex collection. Amex collection will harass you and harass you until the debt matures up to 120 days that is when the account is sold to collection agencies those will threatened you with liens and lawsuits. Now if you plan to keep the card make sure you don't let pass over 60 days because after that Amex will make you pay everything even the current and the fees so your card wont be cancel. And by the way Amex reports everything to your credit history if you are late 30-60-90 they reported!!!!!! Don't call them for a payment plan because they will see it as default and they will cancel your card forever.

[nazstar]

I have a Blue Card and a Gold card. I kept current on the Blue and went delinquent on the gold. They cancelled both. They sent me to United Recovery. They called me, left a message and then called my mother's house 16 hours later. I took the call (I was visiting my mother in the hospital and was staying at her place in New York) and told them they are not allowed to call any number other than my cell or contact me via mail. They HAVE to abide by that and they have.

I have $18,000 on my AMEX Gold (mostly on a sign and travel portion) and another $2000 on my blue. The funny thing is that even after they sent me to United Recovery, they sent me a letter stating that they value my relationship and if I paid in full within 15 days, they would like to offer me a new card. Duh.

Oh, and AMEX doesn't give a hoot if you pay "most" of the bill. I had an all time high balance of $79,000 on AMEX and I paid them $50,000 a year ago with refinance money from the house. They cancelled my card the following month because I was 2 months late.