Amex credit checks

[Mal]

Just spoke to Amex on the phone and they said they have been getting a few calls and they got an email distributed to all the CSR team - call them to get the email explained as I may have got some info wrong as I was in a rush at work...

I have been read the email verbatim, and I don't believe the contents fully. IIRC, Most of it is about why Amex can check your credit report, and what they are allowed to do. It finishes with claiming that Amex hasn't put on a 'new application report', but rather that they did a scan of credit reports to check for discrepancies compared to Amex knowledge (ie if you've recently had bad debts etc).

At this stage I'm not sure if Amex has stuffed up or Veda has stuffed up. If Amex did a 'scan' type check, then it should be noted in a different section as a view - not a credit application.

The truth will come out when people access their credit reports and examine them, which is what I will be doing in the near future. If there are new entries in "Applications for credit" from Amex - then they will be removing them.

 

[Andym]

Thanks for the reply Mal - I think that I will be obtaining a full report in the new year also just to scour over it...

Also, on a side note, are you the same Mal from OCAU? If so, It's Creative here... I've changed my hobby from PC's to CC's

 

[Mal]

Also, on a side note, are you the same Mal from OCAU?

Nah, don't post @ OCAU, although I have visited there a few times.

 

[oz_mark]

At this stage I'm not sure if Amex has stuffed up or Veda has stuffed up. If Amex did a 'scan' type check, then it should be noted in a different section as a view - not a credit application.

Having looked at my last alerts everything seems to be called a New Listing (e.g. Address Details - New Listing). An enquiry, when you apply for something, turns up as something like:

Consumer Credit Enquiry - New Listing

Whereas the one referred here is

Consumer Credit Provider - New Listing

I suspect this is different to the 'Enquiry' listing

 

[Mal]

I've applied for a copy of my Credit Report and will see what it says.

Whilst I'm sure that this is the reason they give (increasing security), I don't believe for a minute that this is the reason that Veda Advantage has added the extra bits of identification like the bill in your name, etc.

Thanks for that piece of advice. Gave the basic details as would be required for an online application (also my Veda Ref #) so will argue your point if harassed.

Having looked at my last alerts everything seems to be called a New Listing (e.g. Address Details - New Listing). An enquiry, when you apply for something, turns up as something like:

Quote:
Consumer Credit Enquiry - New Listing
Whereas the one referred here is

Quote:
Consumer Credit Provider - New Listing
I suspect this is different to the 'Enquiry' listing

Another good point. Will wait until I see my credit report and what it contains and take things from there. I'm not sure how long a "Consumer Credit Provider -New Listing" (if applicable) is allowed to stay on the report, and will do some more research.

 

[beardoc]

I've applied for a copy of my Credit Report and will see what it says.
Thanks for that piece of advice. Gave the basic details as would be required for an online application (also my Veda Ref #) so will argue your point if harassed.

I will be very interested to see what they do in this circumstance - I dislike that they seem to be using the "privacy" thing to force people onto a paid product, rather than the free product that they are REQUIRED to make available under the legislation.

I might consider doing the same very soon.

 

[stevebroughton]

I've applied for a copy of my Credit Report and will see what it says.



Thanks for that piece of advice. Gave the basic details as would be required for an online application (also my Veda Ref #) so will argue your point if harassed.



Another good point. Will wait until I see my credit report and what it contains and take things from there. I'm not sure how long a "Consumer Credit Provider -New Listing" (if applicable) is allowed to stay on the report, and will do some more research.

The Credit Provider - New Listing means that Amex has subscribed to Veda's eAlert product for you.

It doesn't show on your report as an enquiry, however it's listed under a seperate section called - current consumer credit providers (or something similar). It only shows amex's name and date that they subscribed to the service so there's no amount or any other information.

What basically happens as a result of amex listing this is that any adverse public information (such as judgements, bankruptcies etc.) will be sent to them as an alert from veda, and also 30 days after any default is listed they will be notified of that as well (there's a 30 day period where veda is not allowed to report it to other credit providers)

There's a seperate eAlert product for clearout's (people who've skipped) and with this one the credit provider gets alerted to the above, plus any changes to address that you make. Based on the product name that you've quoted, you don't appear to have been subscribed to this one.

I wouldn't be making complaints to anybody about any duplicates because there isn't one. The information that will be recorded on your credit file is accurate (assuming you still have an amex account) so any complaint will be dismissed.


Hope that helps.

 

[Mal]

The Credit Provider - New Listing means that Amex has subscribed to Veda's eAlert product for you.

It doesn't show on your report as an enquiry, however it's listed under a seperate section called - current consumer credit providers (or something similar). It only shows amex's name and date that they subscribed to the service so there's no amount or any other information.

stevebroughton , thanks for your comments - and welcome!

My credit report should turn up in a week or so, at that time I'll be in a better position to see what has been added.

 

[Mal]

Have got a copy of my Credit Report now, and the only recent entry is from Amex:

[Current Credit Provider(s)]
xx-xx-2003 Amex Credit Department
Reference: It was reported that a credit account was opened for you and that you have an ongoing credit relationship with them.
Account : xx_xx_xx_xx_x


As the entry is listed under "Current Credit Provider(s)" rather than "Consumer Credit Applications" then this is ok - it's not a duplicate of a previous entry, nor an addition of a new credit application. They remain on your report until you cease dealing with that entity.

Interestingly, the second Amex enquiry I got notified about was not listed.

Veda sent me the information using the information I provided in a previous post - so if applying for your Credit Record, what they ask for may not actually be what they want to see...

 

[JohnK]

I'd think that the card companies like people whom have lots of cards.

And I tend to agee with this statement.

I know it maybe seen as an invasion of privacy but I am not really sure why people are so worried or concerned by what appears on the Veda Advantage credit check. Unless you have defaulted on credit card payments or loans then you have nothing to worry about. Most financial institutions could care less if any other financial institutions have made an inquiry on your credit file.

 

[spunkarooney]

And I tend to agee with this statement.

I know it maybe seen as an invasion of privacy but I am not really sure why people are so worried or concerned by what appears on the Veda Advantage credit check. Unless you have defaulted on credit card payments or loans then you have nothing to worry about. Most financial institutions could care less if any other financial institutions have made an inquiry on your credit file.

Most, if not all, financial institutions do care how many applications have been made.

If we’re talking strictly about “inquiries” then, as others have pointed out, the institutions cannot see who else has inquired.

The 1st time I saw inquiries on a credit file was in 2008, it appears to be a relatively new tactic by credit providers to maintain their credit portfolios.

This is certainly worthy of further investigation.

 

[JohnK]

Most, if not all, financial institutions do care how many applications have been made.

Which ones? In July I applied for an ANZ low rate credit card, St George Vertigo Mastercard and in September a Wizard Clear Advantage Mastercard. All approved with decent credit limits and no mention or concern shown by any of the above financial institutions for the number of credit card applications I have had in the last 5 years or the other credit cards I have had for longer than 5 years.

How about the $3,100 credit limit increase on my Amex Gold in September/October without me asking or what about the $5,000 credit limit offered by CBA Mastercard and Visa in November/December or the $17,000 credit limit offered by Citibank late last year.

Maybe I am getting special treatment because I am heavily in debt and I have a history of paying interest rather than paying off the balance in full each month....

 

[Mal]

Which ones?

Amex does. During one conversation with them, they advised the max number of applications on your report before it would raise concerns.

Also, a sudden burst of activity by a previously unknown person (ie new credit report) will also cause suspicion due to the potential it's a false identity.

 

[straitman]

Most, if not all, financial institutions do care how many applications have been made.

spunkarooney,

I have to ask 'who' also. As far as I can see they ask and then ignore the answers. I have never had anything queried.

 

[oz_mark]

Having known someone to have an Amex application rejected, I can vouch for the fact that they do take notice of how many queries are on your file. They won't query you about them, they will just say you didn't meet their criteria.

 

[spunkarooney]

spunkarooney,

I have to ask 'who' also. As far as I can see they ask and then ignore the answers. I have never had anything queried.

You’re talking about a credit card application yeah? Where they ask you how many cards you have? I think that’s what you’re referring to.

What we’re talking about is your actual credit file and how many applications you have made in recent history. This is what they look at. If you have made too many, or many in short space of time, this may work against you.

All financial institutions have complex algorithms which calculate risk and each calculates it (risk) in a different way. They don’t make this (calculation) known even to staff for fear of abuse.

 

[Evan]

Years ago i was rejected for an Amex due they sad to inquiry's exceeding there limit. (Which they said was 2 :shock, anyway i had just moved house so even people like the electricity people do an inquiry, i got my credit report and justified all of them and still no deal.... so i walked away and old came back to then years later... there loss i guess.
E

 

[Dave Noble]

spunkarooney,

I have to ask 'who' also. As far as I can see they ask and then ignore the answers. I have never had anything queried.

When the credit check is performed, they do get information on other applications and number of applications for credit can indeed be a concern when deciding whether to afford credit

Would also seem that they may now get details of how many accounts are active based on information given that the report now has a section for current arrangements

Dave

 

[Evan]

<..>
Would also seem that they may now get details of how many accounts are active based on information given that the report now has a section for current arrangements

Dave

Yes, it would be interesting at what point they see an issue, maybe if you have 7 or 8 cards ? lets just say ANZ or Amex neither have an issue (i assume this since the offer me increased credit limits) with the 3 cards in total i have but with what i consider very large credit limits compared to income... (about 6-8 times monthly income + a charge card)
E

 

[Diesellife]

Ok, here is the thing... Amex has a scoring system that goes beyond normal local financial institutions. Generally, information is obtained thru Veda and no extra or very little information from outside source. However, because Amex isn't a local bank and the Amex brand as an oversea trader, their regulations are somewhat looser compare to other banks. (Fact) Source from my collegue who worked for Amex higher up executive.

Here is my speculation:
While Amex does care about the Veda's information, Amex will and can obtain information via different sources. Perhaps from other banks etc.

For example: BMW Card by Amex, it not only go thru the normal credit check (Whatever that is) but will also obtain your finance history with BMW finance.

This prompt me to think... Maybe because Amex is somewhat outside the normal banking regulation, they are allow to enquire their business partners for additional details if they deemed appropriate?! Afterall, Amex has the upper bargin hand for the deal. (Eg. No Westpac Amex if Westpac doesn't agree to forward required info when need?)

It will be interesting to know the comments from you guys!