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Amusing Amex Story

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    #1

    Amusing Amex Story

    With all the depressing news I thought I'd share this one - while not funny in the big picture of bankruptcy, it is amusing. I'm getting ready to file Chap 7 and working with my attorney. I told her I have an Amex card that I use for my daily expenses and pay it off each month in full. I then asked if she thought Amex would let me keep the card after filing (it'll have a zero balance). She said as soon as Amex finds out I'm filing, I'm a goner. I said no way. We joked back and forth and I decided to test her theory.

    Called up Amex - said "Hey, I'm just letting you know that I'm going to be filing Chap 7, I have a small balance with you but plan to keep using the card, etc etc etc." When they first answered they were all friendly and such, but as soon as I told this lady she was all business. Asked me the name of the attorney, etc and said thanks and we hung up.

    Next morning my wife went to Great Clips to get her hair cut - Amex card is declined. Hmm - strange- went online - ACCOUNT CANCELLED. I couldn't believe it - less than 18 hours later I was cut off.

    Called the attorney, she jokingly said I told you so. So now I've got about $1200 on the Amex card and guess what - it's going into the case. I know that's not the right thing to do, but boy oh boy - you try to work with somebody and they treat you like you are scum.

    BTW - the only reason I'm filing for BK is that my S corporation business failed and of course I am responsible for all of that business debt. My personal stuff is all fine but I'm screwed so BK, here I come!

    Just wanted to share.

    Tom
    Chapter 7 filed 3/31/2009
    341 Meeting 5/6/2009
    Discharged! 7/9/2009
    Tags: None
    #2
    I can understand your desire to keep the AMEX active and intention to pay off the balance but I imagine that once AMEX heard you were filing protocol required them to minimize their exposure and cancel the account. From their viewpoint they would rather lose $1,200 than risk you going on a spending spree and discharging much more than that.

    I asked our attorney if I can expect to keep a card with a zero balance and a low limit for emergencies and he said it's very doubtful. We'll see but he assumes they will cancel it as soon as we file.

    Comment

      #3
      We have an amex with bal of about 5k right now...haven't paid it since Nov. I would have thought they would have cancelled us long before now, but we just only received a letter this week saying our acct is "scheduled" for cancellation if we don't pay. They previously sent us a couple of letters telling us to call them for a payment plan. Never received any letters stating that they would give you $300 if you cancelled your account (what I heard about in the news).

      Comment

        #4
        Originally posted by phigment View Post
        I can understand your desire to keep the AMEX active and intention to pay off the balance but I imagine that once AMEX heard you were filing protocol required them to minimize their exposure and cancel the account. From their viewpoint they would rather lose $1,200 than risk you going on a spending spree and discharging much more than that.

        I asked our attorney if I can expect to keep a card with a zero balance and a low limit for emergencies and he said it's very doubtful. We'll see but he assumes they will cancel it as soon as we file.
        We tried this and failed, but maybe didn't pay enough attention. We had a Chase card that we included in our Ch. 13 plan and one that I kept out of the plan for business, etc. that had a low limit and was always paid in full on time. It was an "Amazon.com" card- from Chase. Right after we filed, and while on a business trip, they cancelled the Amazon card. No warning.

        I was fine with it, of course, and prepared. I suspect we may have had better luck keeping a card if it was with a company that we had no other issues with. But maybe not.

        Comment

          #5
          Originally posted by detroit9 View Post
          We tried this and failed, but maybe didn't pay enough attention. We had a Chase card that we included in our Ch. 13 plan and one that I kept out of the plan for business, etc. that had a low limit and was always paid in full on time. It was an "Amazon.com" card- from Chase. Right after we filed, and while on a business trip, they cancelled the Amazon card. No warning.

          I was fine with it, of course, and prepared. I suspect we may have had better luck keeping a card if it was with a company that we had no other issues with. But maybe not.
          We have no other obligations to the issuer (or related companies) of the card I hope to keep but our attorney said no one is taking a chance in this market.

          Comment

            #6
            Wife's Card

            My wife has a Chase card (only in her name) that she's had for 18 years - no balance on it, very infrequently used. I'm guessing it'll be a goner as well once they find out. Can't blame them I guess.

            The bad part is that I would never run out and have a spending spree - I only got the Amex in the first place because my BOA check/debit card kept getting stolen. I swear they have the worst security - 4 times in 2 years our accounts were hijacked and money taken out.

            Tom
            Chapter 7 filed 3/31/2009
            341 Meeting 5/6/2009
            Discharged! 7/9/2009

            Comment

              #7
              The major cc companies share a database that indicates (among other things) their cardholders who file bk. That's how cards that are at a zero balance and aren't included at filing time still get cancelled.

              Sometimes a local or store-based card will squeak through and remain active, but if the cc is one of the big boys like MC, Visa, etc, forget it.
              I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

              06/01/06 - Filed Ch 13
              06/28/06 - 341 Meeting
              07/18/06 - Confirmation Hearing - not confirmed, 3 objections
              10/05/06 - Hearing to resolve 2 trustee objections
              01/24/07 - Judge dismisses mortgage company objection
              09/27/07 - Confirmed at last!
              06/10/11 - Trustee confirms all payments made
              08/10/11 - DISCHARGED !
              10/02/11 - CASE CLOSED
              Countdown: 60 months paid, 0 months to go

              Comment

                #8
                Uh, yeah, not surprising at all.

                I had a Nordstrom card that I NEVER used, much less carried a balance on or been late with, and it got canceled within a week of filing BK.
                Filed Ch. 7 (no asset): 12/30/2008
                341 Meeting: 01/26/2009
                Last Date for Objections: 03/27/2009
                Discharged & Closed: 03/30/2009

                Comment

                  #9
                  I had a zero balance Neiman Marcus card that I had not used in a couple of years and it was the first card canceled in my BK! They had that letter to me within a couple of days of my filing.
                  Filed CH 7 9/30/2008
                  Discharged Jan 5, 2009! Closed Jan 18, 2009
                  I am not an attorney. None of my advice is legal advice in any way..

                  Comment

                    #10
                    Amex is the worst. I had 2 cards. I was late on one pay less than the min. and not late on the other. Went to Costco and bam...denied!!!! And I used the card that I wasnt late on...but because I sent in less than the min. on the other card they denied me...
                    I hate Amex..pigs
                    Oh yea..I wanted to try to keep those cards open also. Those were the only two I was going to pay off. NOT!

                    Comment

                      #11
                      Even more amusing...

                      Got home today - letter from Amex already stating that my account is "seriously overdue" (remember, they just canceled it on Monday and I had made my last payment on time). Per the letter "your account has been transferred to Aegis Receivables Management Inc for collections."

                      Wow - I'm up to date on my payments, they closed the account monday, and on Thursday I have a letter that it's gone to collections. What a bunch of jerks!

                      I hate to say it but now I'm glad they did this and that I will include them in the Chap 7...
                      Chapter 7 filed 3/31/2009
                      341 Meeting 5/6/2009
                      Discharged! 7/9/2009

                      Comment

                        #12
                        We've discussed before the idea that most of the national cards charge off an account as soon as they are informed of a BK and sell it to a "receivables management" firm.

                        This is an interesting one, however, because it appears the OP managed to get Amex to do this to the account without any legal filing occurring.

                        That suggests some possibilities, though I'm not exactly sure what they are.
                        filed chapter 13..confirmed...converted to chapter 7...DISCHARGED!

                        Comment

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