Amex card suspended and then cancelled

[shahidemran]

I am going through the same situation I applied for the same card for the 70,000 avios point and aggressively used the card in the first month, spending around £2500. American Express froze my card and asked me to provide my bank statements showing last two pays, which I sent. However, I received a letter stating that I have breached the agreement. The letter referred to the American Express credit card member agreement and stated that they have reasonable grounds to believe that I am unable or unwilling to pay my debts when due, which is a breach of the agreement as explained in the “ending your agreement” section. They asked to pay my current balance and informed me that they can terminate my agreement at any time on or after 21/03/2023. Additionally, they stated that information regarding the status of my account will be reported to credit reference agencies and remain on record for 6 years.

I did send some money to FF via paypal. Also used for day to day purchases.

@jj I didn’t lie about my income.

[Harrier25]

@shahidemran and @Reximus, is this the first Amex card for both of you?

[BuildBackBetter]

Ah, the once in a while ‘Amex suspension’ story.

As Harrier25 said, the clue is in what they aren’t telling us. PayPal transfers here and there, reporting incorrect income by self employed…

[BJ]

BuildBackBetter wrote:

Ah, the once in a while ‘Amex suspension’ story.

As Harrier25 said, the clue is in what they aren’t telling us. PayPal transfers here and there, reporting incorrect income by self employed…

Not only that, if we take the amex letters at face value it seems plausible thst missed or late payments may have been in plsy although I note the OP states this was not the case.

[Peter K]

Also, the nature of forums means that we do not know if these two posters with the same issue are indeed two separate people, or one person posting under two names.

It seems the more of these type of tales I have come across over the years, the more you realise that there is always something crucial missing from the original story that is the real reason behind the issue they are having.

[Luca M]

JDB wrote:

Luca M wrote:

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.

I think you have either misread my post or got confused somehow… my own suggestion was to make a SAR request to those two external bodies (to Amex) used by Financial Institutions in the UK… SAR to both National Hunter and CIFAS would be about the OP data, not Amex and not likely cause any damage of relationship with Amex or anyone else.

In terms of purpose, you will verify what income data has been recorded against your profile through the various credit applications done overtime and if any “flag” has been put on your profile, and who has asked to put such a flag (e.g. if Amex had indeed put a default flag against the OP he could rightly ask for it to be removed as he was within the payment terms to pay it back).

[shahidemran]

Harrier25 wrote:

@shahidemran and @Reximus, is this the first Amex card for both of you?

Yes, it is my first card with Amex.

[Harrier25]

Maybe a big spend straight off in month one raised a few flags.

[Aston100]

jj wrote:

Surely you know that credit card companies like Amex have access to a range of data sources to validate income?

Can I have some examples please.

[jj]

Aston100 wrote:

jj wrote:

Surely you know that credit card companies like Amex have access to a range of data sources to validate income?

Can I have some examples please.

No, you can’t. These things are not discussed in public to avoid the risk that a small number of bad actors may seek to game the system. But, as an insider, I repeat that lenders have a range of data sources.

Honesty is the best policy.

[aq.1988]

Harrier25 wrote:

Maybe a big spend straight off in month one raised a few flags.

There must surely be some other factors involved. I’m sure many people trigger their SUBs in the first month of membership, and don’t get suspended. I wonder how much their credit limit was. Perhaps they utilised too much of it? Although, what’s the point of a credit limit if you can’t use it? Having said that, maybe in month 1, they haven’t built any relationship with Amex yet, and they decided they were too risky.

I remember when I got my first credit card, I was so worried about missing a payment that I would pay the balance immediately after each transaction cleared, until month 3, when someone told me that you need a balance on your statement date, so it can be reported to credit agencies.

[Luca M]

jj wrote:

Aston100 wrote:

jj wrote:

Surely you know that credit card companies like Amex have access to a range of data sources to validate income?

Can I have some examples please.

No, you can’t. These things are not discussed in public to avoid the risk that a small number of bad actors may seek to game the system. But, as an insider, I repeat that lenders have a range of data sources.

Honesty is the best policy.

Is not a big secret, information are widely available. National Hunter is one of those places which financial institution use to track income and other data used on Credit Products Application (hence I suggested for the OP to do a SAR and found out what info is held about him/her). Some UK banks share informations amongst themselves and have also a way to deduce real income vs money transfers (e.g. assuming you circle some funds in and out of some accounts).

[JDB]

Peter K wrote:

Also, the nature of forums means that we do not know if these two posters with the same issue are indeed two separate people, or one person posting under two names.

It seems the more of these type of tales I have come across over the years, the more you realise that there is always something crucial missing from the original story that is the real reason behind the issue they are having.

As you say, we are clearly not getting the full story (and there are far, far more closures than people admit to here) but unfortunately the 70,000 BAPP offer has, inter alia, attracted a great many wrong’uns, created a considerable froideur between BA and Amex, deprived HfP and others of affiliate income that it will mark a major turning point in Amex generosity; there are big changes to come thanks, as always, to a few dodgepots.

[zapato1060]

Harrier25 wrote:

Maybe a big spend straight off in month one raised a few flags.

The OP has already cleared it up by stating it was his change of income and AMEX viewing it as being cautious of not being able to pay off his funds, whether true or not.

BJ wrote:

Ah, the once in a while ‘Amex suspension’ story.

This.

JDB wrote:

It seems the more of these type of tales I have come across over the years, the more you realise that there is always something crucial missing from the original story that is the real reason behind the issue they are having.

Yes Sir.

[BA Flyer IHG Stayer]

Peter K wrote:

It seems the more of these type of tales I have come across over the years, the more you realise that there is always something crucial missing from the original story that is the real reason behind the issue they are having.

Indeed and the missing info is usually the crux of getting to the bottom of the matter.

Happens a lot on blogs where it’s easier to get through the eye of a needle than it is to get vital information out of some people so they can get proper advice.

I specifically remember two from flyer talk one re BA and the other IHG where accounts had been closed where the initial protestations of innocence soon gave way to admitting to the breaking of not one but several T&Cs.

[jj]

@Reximus, if you believe that you provided accurate information on your income, I apologize for suggesting that you lied.

But you say you moved from being employed to self-employed a few months before applying, and that still may well be the issue. Card providers continue to monitor your income after your card has been issued, and sonetimes a change can lead to the card being withdrawn.

So, some questions that might help get to the bottom of this:

– Is your recent net monthly income, paid into the bank account for which you provided statements, lower than you previously enjoyed or lower than the net monthly income implied by your last tax return, which you declared on your application?

– Did you repay Amex yourself for the initial purchases, or did the payment come from the business, your partner or somewhere else?

– When did your employment status changes, and when did you apply for the card?

[dougzz99]

Popcorn threads. Tale of wow, more to and fro and eventually oh I did this or I didn’t realise that’s not allowed. Sure Amex will get some wrong, but they’ll get a lot more right, or they wouldn’t be in business.

[DJ]

BA Flyer IHG Stayer wrote:

Peter K wrote:

It seems the more of these type of tales I have come across over the years, the more you realise that there is always something crucial missing from the original story that is the real reason behind the issue they are having.

Indeed and the missing info is usually the crux of getting to the bottom of the matter.

Happens a lot on blogs where it’s easier to get through the eye of a needle than it is to get vital information out of some people so they can get proper advice.

I specifically remember two from flyer talk one re BA and the other IHG where accounts had been closed where the initial protestations of innocence soon gave way to admitting to the breaking of not one but several T&Cs.

Very OT, out of curiosity, how can anyone exploit an IHG account? Since something would only get credited after a stay?

[Rui N.]

Re IHG it was registering for promotions that you were not eligible for.

[BA Flyer IHG Stayer]

And he was using points plus cash option as a way of avoiding the annual points buying limit.

This wasn’t making the odd booking then realising a few weeks later the trip wouldn’t work but booking then immediately cancelling

[zapato1060]

Was there not someone on here who posts frequently who took Shop Small to the absolute cleaners. I think after being his card being cancelled his account was reinstated.

[Froggee]

zapato1060 wrote:

Was there not someone on here who posts frequently who took Shop Small to the absolute cleaners. I think after being his card being cancelled his account was reinstated.

Yes, @Genghis. He still posts occasionally but kind clocked off when the forum started. In his own words, halfway down the below link. Another Amex suspended my cards and then cancelled tale.

https://www.headforpoints.com/forums/topic/amex-decided-to-cancel-all-my-cards/page/4/

[meta]

@Genghis also later said that he’s back in the Amex game and has made peace with them.

[NorthernLass]

I don’t think Ghengis even breached any Ts and Cs, I think Amex were just annoyed at someone making such good use of the Shop Small offers!

[Ash]

How can anyone abuse the shop small offer (that’s not an invitation for a guide)….it’s a £5 off offer…I mean how many times could you possibly use that.