AMEX Forced account closure

[albyd]

I think someone mentioned at one point that they lack the banking license to allow customers to be in credit? Seems like a reasonable explanation.

I agree. I think also American Banks don't allow it. Citi AU before the NAB takeover didn't mind but I know Citi USA doesn't like it at all.

 

[MEL_Traveller]

I think someone mentioned at one point that they lack the banking license to allow customers to be in credit? Seems like a reasonable explanation.

This! CC don’t have saving bank rights or whatever, and credits aren’t covered by the consumer banking guarantee?

28 degrees is another card that doesn’t like you in credit.

 

[edy4eva]

It's quite rare in Australia though. This data point suggests that closing all Amex cards so you can qualify for a new SUB every 18 months has its risks.

Amex value a lot about ongoing relationship. This probably happened because OP didn't kept any of the previous Amex cards so Amex has no recent data point to go with.

For OP: Amex is legally in the right here to withhold the sign up bonus unfortunately. Given you have nothing to lose you can contact the escalation channel with Amex and see whether they will give the points to you as a goodwill.

Amex does not ‘honour’ long term relationships. I had been with AMEX since 2003, always paid off my balance in full on time. Went from a 6000 limit to 30k to their ‘limitless’ platinum charge card in 2017 which they closed, on the second month because I put on it, around 20k within the same statement period (mind you, I sometimes cycled about 30k per month prior to that on their credit product without a hitch). They also suspended my wife’s accounts (separate from mine, she was a client for nearly 8 years) the moment she bought something for 50 dollars.

They transferred the owed monies to debt collectors within 3 days of closure, we were overseas. The moment I landed in Sydney the following week I had 20 messages from the sharks, threatening legal action and property seizure to recover the funds. Interest was set at something like 25% and already began accruing.

I tried to reason with amex, no avail. They kept going in circles. It’s all because of an overzealous and racist employee who thought nothing better than to trim us off.

I got the financial services ombudsman involved. They reached a verdict within 3 weeks that amex was within its right to cancel my account without notice and for NO reason at all. By that time I had the outstanding balance repaid in full. The ombudsman did however put a halt on debt recovery, fees etc and interest accruing (as per my initial request).

I also managed to lobby over the points the day they suspended the accounts including the just-credited bonus. Amex refused to refund the annual fee.

I appealed the ombudsman’s decision, or was it a review, I forgot. Anyhow, the final verdict was that Amex was right relying on their ‘no reason’ decision to cancel, with amex acknowledging that I had been a loyal customer with long and clean history. I then got a pro rata refund for the annual fee (but the travel credit got forfeited).

I later figured out that because we had gone on their charge card, none of the previous credit history mattered anymore. The team overlooking fraud just sees: new card, lots of spend -> suspend/cancel. Very rigid business rule. Very weird and amounts to false advertising because theIr marketing pumped the product as a no limit spending (above $50k required pre auth).

Happy days. Not

 

[albyd]

They go to pains to state that it's no pre-set spending limit but that doesn't mean an unlimited spending limit and give examples:

What Is A Charge Card? | American Express Australia

Explore the benefits of American Express Charge Cards, how they differ to Credit Cards, how they can improve your cashflow and the exciting rewards they offer.

www.americanexpress.com

In the T & C, it says:


My understanding is that they will let you charge based on what your recent rolling charge history shows you have charged and paid off in previous periods. for instance, if you go from charging $10K/month to suddenly $40K, they will ask you to prepay it. You should then be able to build up your "shadow" limit by "conduct" on your account over time.

There is no limitless card - even Centurion has a comfort limit. To go over your comfort limit, you need to be "underwritten" which sounds to me like a more invasive credit application process than what is required for a credit card application and even then, it's valid for a year only. I know as I almost went through the process. I got turned off as it was only valid for a year. You can get an "evergreen" limit for life on a credit card but you can get a fixed limit on your charge card for only a year - doesn't make sense to me.

Having said that, I think you were not treated respectfully by Amex - yes, they may very well have been within their rights to close your account, but I think that it was an honest mistake on your part and they should've just declined to authorise the $30K spend and kept your account open - just my 2 cents worth.

 

[Boomer85]

I got a system approved charge card. Which once I received the card I paid for a family overseas trips and put a couple grands on a car deposit which about 20k in first month which triggered a financial review.
I have kept my income account and saving account separately which i have been requested income bank statements (which they are consider the income but because remaining balance is always low and intent to close my account.) At the same time, the first direct debit is deducted, they are now requesting my saving account statements.
Sent in on Thursday, followed up on Friday have been informed Still pending decision and may have an update on Saturday.
I think it is right to start your credit card Especially Amex with low to mid spend for first couple of months.... in case put your account in to risk. Especially .... if you book trips which means you will jeopardize your travel insurance, airport lounge access and all other benefits. Waiting for OP's outcome.
I am planning to complain to AFCA if my account is closed by Amex.

 

[Cynicor]

If everything you sent matches with everything on your application you’ll be fine. Making a bunch of travel bookings with a brand new card is the most suspicious thing possible for Amex and they want to limit their exposure.

 

[Boomer85]

If everything you sent matches with everything on your application you’ll be fine. Making a bunch of travel bookings with a brand new card is the most suspicious thing possible for Amex and they want to limit their exposure.

Wait for Monday now. Really lost interest with Amex now. But very annoying need to set all my direct debit back to another card..

 

[Viridis]

Making a bunch of travel bookings with a brand new card is the most suspicious thing possible for Amex and they want to limit their exposure.

Seems a bit silly if I’m honest

The bulk of the useful benefits that come with a Plat are travel related; it seems entirely reasonable to me that someone should apply for the Plat and subsequently incur a bunch of travel related expenses

 

[Cynicor]

Sure, but $20k in the first month? Bear in mind that Amex don’t do any income checks for many people for this card, unlike almost eve try other credit card

 

[Viridis]

Sure, but $20k in the first month? Bear in mind that Amex don’t do any income checks for many people for this card, unlike almost eve try other credit card

It’s 2024 … $20k doesn’t get you very far in the travel world ($12k for a return Business Class fare to Europe for one person - what if you have a family or want to go First. It’s a premium card with a premium fee (!) - this card is targeted at that kind of person

$20k is p*****g in the wind money for Amex’s target audience.

They either want that market or they don’t. Having said that, to date, I haven’t had a problem with them

 

[Cynicor]

Cool, go complain to Amex if you want. I don’t really care, I’m just explaining it.

 

[Viridis]

Cool, go complain to Amex if you want. I don’t really care, I’m just explaining it.

Seriously? Lighten up …..

I’ve nothing to complain about

……. I’m just explaining it.

….. then I’ll just sit and marvel at the genius of your omniscience

Enjoy your weekend

 

[pyramidforce]

Im waiting for an update where Amex cancels the card of someone trying to meet the intro sign up bonus.