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Forums Payment cards American Express Amex card suspended and then cancelled

Amex card suspended and then cancelled

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  • Reximus

    I am new to American Express and opened my account on 29th January, I went for the British Airways Premium Plus account with an annual fee of £250. The card offered a welcome bonus of 70,000 avios points if you spent £3000 in the first 3 months.

    On the first of March, I received an email advising that my card had been suspended, I immediately contacted Customer support who advised that they were doing a review of my account and not to worry, but could I provide 2 payslips and two bank statements, this I did immediately and also while I was on the phone I asked if it would be okay to pay the statement balance which was not due until 15th March. This was fine the full balance for the month of February was paid.

    Still, the card remained suspended, I called again on 9th March to Customer service to be told that my card had been canceled, absolute shock and disbelief as I was only £400 from the welcome bonus of 70K Avios. I requested to speak with the manager as still no reason was given as to why this had happened. I was told a manager would contact me within 48 hours.

    Today I called customer service again to check if I could appeal the decision, customer service advised that there was not, but I could speak with a manager which I requested for the second time, while I was on the phone I requested that I pay off the remaining amount which is not due until April 15th, this was completely clearing the remaining balance on the card.

    This evening when returning home I find a Notice of default from AMEX advising that the card had been terminated and that they were demanding payment of the £124 that was paid today but not due until next month.

    All I can imagine is that this is some computing error, has anyone else experienced anything similar or know of how this can be resolved?

    alig4th

    Was the email from the “Know Your Customer”/KYC team?

    If so, all I can tell you is that cancellations do happen, but the team (who are not contactable on the phone, apparently, only email), will not tell you the reason for cancellation, and just quote the T&C which do state they can cancel the card and don’t have to give you the reason.

    I can also tell you that, if it is the KYC team that cancelled your account, then many of the agents you’ll speak to (including the team based in Brighton, who are usually fantastic), won’t be able to see any details on the account from the KYC team, and in some cases won’t even be able to see the block on your card or that the account is marked for closure.

    Harrier25

    What aren’t you telling us @Reximus? Something else has happened here, and if you don’t know then I suggest, in the first instance, obtaining your full credit report from either Equifax or Experian and lodge a Freedom of Information request with Amex.

    BA Flyer IHG Stayer

    You don’t live on the Isle of Man do you?

    Philondon

    What aren’t you telling us @Reximus? Something else has happened here, and if you don’t know then I suggest, in the first instance, obtaining your full credit report from either Equifax or Experian and lodge a Freedom of Information request with Amex.

    Subject Access Request. Freedom of information requests are to public bodies only, such as local councils.

    zapato1060

    Did you use Paypal at all to send money via f&f?
    As BA Flyer stated above do you live in IOM?
    Have you changed address recently?

    Reximus

    Thank you for the responses it is much appreciated!
    It just seems so weird as I can find no explanation for what has happened my Experian credit score is 999, not sure it can get any better, and no I live in England.

    Never has it said on my account that there was any money owing, I set up my direct debit to take the full statement balance every month on the day of receiving my card.

    It just seems as if it has been totally fabricated, to what end I do not know.

    I will try contacting them again today, now that I know their reason for canceling my card, and just ask them if they can show me in the 30 days of owning the card where a payment has been missed, also I know that if a payment is missed then there would be penalty charges, so will check to see if these exist,

    Reximus

    Hello Zapato, I did use Paypal to purchase some furniture but nothing for friends. I have lived at the same address for the last 4 years.

    Reximus

    Also, I forgot to mention that the letter (Notice of default) came from: UK.Credit.Review.Team.

    One thing I did not mention was that in the first 30 days of use, I spent just over £2,500.

    Rui N.

    Credit score is a meaningless number. What you need is to check your credit report to see what’s in there.

    zapato1060

    Thank you for the responses it is much appreciated!
    It just seems so weird as I can find no explanation for what has happened my Experian credit score is 999, not sure it can get any better, and no I live in England.

    Never has it said on my account that there was any money owing, I set up my direct debit to take the full statement balance every month on the day of receiving my card.

    It just seems as if it has been totally fabricated, to what end I do not know.

    I will try contacting them again today, now that I know their reason for canceling my card, and just ask them if they can show me in the 30 days of owning the card where a payment has been missed, also I know that if a payment is missed then there would be penalty charges, so will check to see if these exist,

    Unfortunately from others past experience, this is as fruitful as urinating into wind. Nothing will come off it. Its their product and they wish to do with it as they see fit. Hard heard of other people being stopped then suddenly a few months later they could mysteriously apply again.

    The 2.5k spend in first 30 days is definitely not it as others do that in the first 2-5 days let alone 30. As Rui said please check your credit report properly, maybe their is an anomaly there? Do you hold other AMEX cards and maxed your credit limits? Did you use the Shop small repeatedly?

    zapato1060

    UK.Credit.Review.Team.

    Some quick digging found a job vacancy for this very team.

    In the Credit Bust Out team, you will join a group of analysts specializing in the detection of first party fraud. This means you will deal with Card Members who have obtained an American Express card with the intention never to repay the company. It will be your job to analyse accounts based on behaviour to determine whether a Card Member is genuine and has intent to pay back American Express.

    Core Responsibilities:

    You will be part of a team that delivers world class results, both for Card Members and the business. In your role you will:

    Use a variety of internal and external risk assessment tools to pre-empt potential high credit loss accounts;
    Assess the risk of false applications;
    Conduct reviews of card accounts to assess company risk by determining linkages to other accounts, previous personal history, patterns of spend and known indicators;
    Take preventative action on accounts in a timely and accurate manner by placing the appropriate blocks on cards;
    Raise all high value, high risk accounts to the Team Leader or above for early warning purposes;
    Work to the highest standards with a balanced delivery of both customer experience and shareholder value.

    Could be or couldnt be of note. Either way check your credit report asap. you can try experian or the other for 30 days.

    Reximus

    Thank you Rui, I have now run a credit report to check, and I do have some medium flags with regard to the amount of credit available to me and the balance on the credit cards, but their information has not taken into account that this has been fully paid now. Nothing else stands out.

    Ash

    My experience is there is time lag from clearing a credit card balance to the zero balance filtering through onto a credit report.

    Did you make use of any 0% balance transfer cards?

    Andrew J

    What aren’t you telling us @Reximus? Something else has happened here, and if you don’t know then I suggest, in the first instance, obtaining your full credit report from either Equifax or Experian and lodge a Freedom of Information request with Amex.

    Subject Access Request. Freedom of information requests are to public bodies only, such as local councils.

    FOI also specifically excludes identifiable personal data.

    Froggee

    Assuming there is nothing untoward, my best guess is that there could possibly have been a mistake in the income stated in the application. Given that Amex asked for payslips and bank statements and got them yet still shut you down, the most likely explanation is that something hasn’t tallied.

    You don’t say if you rent or own but it could even be that you’ve been unlucky and a previous occupant of your property was a credit disaster.

    It would be helpful if you could give the wording on your notice of default letter. Given you were up to date with payments it seems they must feel you have breached the credit agreement in some other way most likely misstating something in the application which they don’t take to kindly.

    Reximus

    Hi Froggee, I think you may be onto something. Firstly I am a homeowner of a new home so do not think this is the issue.

    When filling out the application if I was asked about my income (cannot remember but assume I was) I would have based it on my last tax return, but six months ago things changed with the setup of my business (for the better though).

    Also this I believe matches the wording of the Notice of default with the key paragraph in the letter: We have reasonable grounds to believe that you are unable or unwilling to pay your debts when due.

    It’s a pretty nasty and insulting letter to receive based on the belief, with no actual default or late payment to have occurred.

    I will try calling Amex again on Monday, but at least now I have in my mind a reason as to why this has all happened.

    Thank you to everyone for helping me to understand this event.

    Froggee

    This will 100% be it. I’m afraid from Amex’s perspective you will have lied on the application form and that will almost definitely be game over for your relationship with them.

    You made an application in January, a fair few months after your circumstances changed and became very different to what they were when you were likely an employee. Whereas now you’ll either be self employed or a director of your own company. Kinda different.

    I haven’t applied for an Amex for a few years but I’m pretty sure they ask who your employer is on the form. I’m guessing you don’t have a copy of the application but there are most likely glaring inconsistencies the Credit Review Team will have picked up on. They get quite grumpy when this happens.

    The best you can probably do is apologise for any accidental errors you made on the form. And perhaps ask when Amex might entertain another application from you.

    I’m sorry this happened but credit applications are legal documents and any errors are sadly your responsibility.

    Sad face.

    Jmacwigan

    @reximus did you buy something from a company you own using the card? Maybe the furniture via PayPal?

    Luca M

    Worth doing a SAR with National Hunter (where inconsistency in Income are recorded) and CIFAS (some markers are also visible on the Credit Report).

    As they also asked you for payslips etc, and you mention spending £2500 in the first month, it sound like they were concerned about this against what your income was…

    JDB

    Worth doing a SAR with National Hunter (where inconsistency in Income are recorded) and CIFAS (some markers are also visible on the Credit Report).

    As they also asked you for payslips etc, and you mention spending £2500 in the first month, it sound like they were concerned about this against what your income was…

    What would be the purpose of doing an SAR? Just to do one as some sort of protest without a specific aim in mind is incredibly counterproductive and will inevitably make it harder potentially to re-establish any relationship with Amex in the future. There are considerable exemptions in data required to be provided around credit decisions (in essence to stop people trying to game the system) so the OP will learn precisely zero from making such an application. Amex can, under the Consumer Credit Act 1974, close accounts at will, with no appeal and without being required to provide any reasons.

    SAR and FOI (for public bodies) are incredibly powerful tools but they should be used judiciously.

    Ash

    Worth doing a SAR with National Hunter (where inconsistency in Income are recorded) and CIFAS (some markers are also visible on the Credit Report).

    As they also asked you for payslips etc, and you mention spending £2500 in the first month, it sound like they were concerned about this against what your income was…

    What would be the purpose of doing an SAR? Just to do one as some sort of protest without a specific aim in mind is incredibly counterproductive and will inevitably make it harder potentially to re-establish any relationship with Amex in the future. There are considerable exemptions in data required to be provided around credit decisions (in essence to stop people trying to game the system) so the OP will learn precisely zero from making such an application. Amex can, under the Consumer Credit Act 1974, close accounts at will, with no appeal and without being required to provide any reasons.

    SAR and FOI (for public bodies) are incredibly powerful tools but they should be used judiciously.

    Does a SAR to Nation Hunter or CIFAS differ from a SAR to Amex?

    jj

    @reximus, I’m trying to understand…am I right that you were asked about your income on your application, but, instead of providing your current income, you decided knowingly to give Amex false information that was 6 months out of date? Surely you know that credit card companies like Amex have access to a range of data sources to validate income?

    What did you think would happen when you chose to lie? Are you really so surprised that Amex’s letter wasn’t altogether patient and courteous?

    BA Flyer IHG Stayer

    Does a SAR to Nation Hunter or CIFAS differ from a SAR to Amex?

    Yes. They can only provide the info they have on you.

    AMEX may only have part of the CIFAS data on you for example and CIFAS would only have any AMEX data that AMEX supplies to them and that will only be part of the data they (AMEX) holds on you.

    Reximus

    Thank you again for all of your help and advice it is much appreciated and JJ all I can say is everything was answered correctly and honestly at the time of application, but based on your comment I will be asking them to provide any information that I have supplied to them that they believe to be incorrect as unfortunately, I do not have a copy of the application. Thank you all, I will update you if and when I do get an opportunity to speak with a manager.

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