FR FR FR.. Financial review case...

[lucky777]

Hi AFF members,

I have recently been financial reviewed on my account, received email from [email protected] on Saturday. Called back amex immediately and been told to provide ID, proof of address, payslip & bank statement. I then provided all requested info on Monday, got a phone call from amex saying all my cards have been cancelled. Reason being file provide does not look positive, I was unable to get anymore information and simply been told decision has been made, and its final. On top of this, I was told that all my annual fee paid recently ($1450 charge, $395 explorer, $395 velocity platinum) will be forfeited, as its involuntary cancellation. This is really frustrating and unacceptable, I almost had start to shout at the amex rep!
I have had amex for over 9 years, no delay/miss payment ever. I have lodged complaint and now waiting for amex managing level to call me back, at least I want to get my annual fee back, as I only just renewed these 3 cards in last 2 months and yet to use any benefit (travel credit, flights etc).

I wonder if anyone had any similar experience with my FR case, and what should I do if the manager would not want to give me my annual fee back (financial ombudsman?). How long can I apply amex again (not sure if I will be blacklisted).

Any help is much appreciated, thank you all.

Regards,

Lucky but not lucky anymore

 

[Tallfont]

I would be very interested if other AMEX card holders have had this happen.

I have been with AMEX for 16 years and have always found them exceptional to deal with. I put reasonably large sums through the Platinum charge and always pay before due date. What sort of circumstances would trigger a Financial Review such as this?

Tallfont.

 

[knagelli]

Reason being file provide does not look positive, I was unable to get anymore information and simply been told decision has been made, and its final.

I understand it is very frustrating to have no information about the action being taken. However do you mind sharing which file/documents were they referring to for not being okay.

 

[lucky777]

I understand it is very frustrating to have no information about the action being taken. However do you mind sharing which file/documents were they referring to for not being okay.

I am not sure, and thats the points. Its all substantial information, only issue could be that I had charge card and salary showing is slightly under 100k? But you would think that would not cause cancellation on whole account, correct?

I would be very interested if other AMEX card holders have had this happen.

I have been with AMEX for 16 years and have always found them exceptional to deal with. I put reasonably large sums through the Platinum charge and always pay before due date. What sort of circumstances would trigger a Financial Review such as this?

Tallfont.

I am not sure, maybe due to large amount spending recently and I never use to spend this much. Or maybe I added my partner as supplementary cardholder, and I have added him before and then deleted some time ago and added again.

 

[knagelli]

Its all substantial information, only issue could be that I had charge card and salary showing is slightly under 100k

I don't think that will be an issue as long as you have declared your income correctly in the application. However if someone has declared something and later it is identified to be incorrect ,that might be one of the cases but again guess work at times is very dangerous. So I don't want to conclude anything as it could be any other reason.

Hope you get the fee back so you are not at loss and Amex Management is able to provide you with some meaningful information.

 

[Vic]

This sounds just like a phishing scam to me. What number did you call? The one provided in the email?

 

[lucky777]

This sounds just like a phishing scam to me. What number did you call? The one provided in the email?

Its legit number, as confirmed by amex number on back of my card.

I don't think that will be an issue as long as you have declared your income correctly in the application. However if someone has declared something and later it is identified to be incorrect ,that might be one of the cases but again guess work at times is very dangerous. So I don't want to conclude anything as it could be any other reason.

Hope you get the fee back so you are not at loss and Amex Management is able to provide you with some meaningful information.

Thanks for the input. My income is around 85k.
This would be sufficient for explorer and velocity, and I have only $3000 limit on these 2 x cards.

 

[amaroo]

Amex are doing the rounds. I got a call rather than a letter, the agent went through the details and confirmed a guaranteed minimum limit on my Plat card. No change to the limit on my other cards. Advised I could spend higher, and they would raise if required.

FWIW - I've been a member for 26 years, have held 4 different AMEX cards (now only 3) and have a long history of paying large sums (6 figures a month) in full every month.

The conversation was only on the limit, no request for information, etc ..... I'm happy with the result of my FR.

 

[travelnutjohn]

wow, sounds like its either huge mistake or something fishy is going on either side.

I would assume that your income has to be correct at the time of the application, and if it goes down after, it shouldnt concern amex

 

[amaroo]

FWIW - I've only ever used two travel credits and no free flights over the whole period of time. Maybe they're reviewing income v outgoing I.E travel credit usage.

 

[wxxnxs]

Thanks for the input. My income is around 85k.
This would be sufficient for explorer and velocity, and I have only $3000 limit on these 2 x cards.

The income isn't met the criteria what you had for those cards, you might meet with one card but not three. However, I will be surprised if AMEX uses that to cancel your account. There might be other reasons trigger the decision, if AMEX suspects that you might or might have involved in any types of money laundrying, or spend significantly higher amount than your income can support, etc. then it will ask you to provide your financial evidence to verify to check if all of expenditures are legitimate.

Did you purchase large amount of gift cards in the past, or spend on behalf of other person etc. All of those factors that are abnormal may also bring AMEX to the attention.

 

[MEL_Traveller]

I would be extremely surprised if you were given the correct information regarding the refund of your cards' annual fees. A company can't take money off you, not provide a service, and keep the fee! This would be against all sorts of consumer laws.

Perhaps if you have committed some type of fraud, or in the absence of fraud you have obtained benefits where AMEX has lost money - to the value of, or exceeding - your annual fee they might be entitled to keep it. But that certainly doesn't seem like the case here.

I can't even see how misleading on your income would justify the retention of the fee. All that would mean is cancellation of the card and a return of the fee.

I would stick in there. But if you don't get the right result, let us know! There must be action you can take.

 

[benjy]

I'd be interesting to know what triggered the review with additional conversation and outcomes.

I'm always worried (no need to be) that I'll be picked up for FR and cards be cancelled, I like Amex and the churning opportunities

OP has a original thread here Financial Review - suggestion needed.

 

[Tallfont]

I would assume that your income has to be correct at the time of the application, and if it goes down after, it shouldnt concern amex

That's an interesting point. I forget what the minimum income for the Plat Charge was in 2004 but I think it was less than 100K. If I recall correctly I was not earning over the 100K mark in those days!

And as you say it should really be of no concern to AMEX. I am sure their computer systems have immense ability to see what you spend and where you spend it and your spending and repayment history. Put into the appropriate algorithms I am sure they would know what to approve and not. For example if I went to put a base level Kia on it I am sure it would approve, maybe not for a 150K Mercedes-Benz!

I still believe that it comes down to paying on time and as long as you do that there would be no need to review. A Charge Card inherently has a higher level of responsibility than a Credit Card and expects prompt payment each month. Do that and I cannot see there being a problem! Something else at play here?

 

[Pleb Status]

@lucky777 - Have you had any credit defaults of any type that Amex are not aware of?

Also, do you have any substantial lending that may affect your ability to pay that Amex are not aware of?

From the AFR article below, it would appear that a whole lot more data has just become available to Amex over the weekend and this may have triggered some of the reviews.

Fair use excerpt -
'Commonwealth Bank was the last of the major banks to go live with comprehensive mortgage data at midday on Tuesday, following ANZ Banking Group and Westpac Banking Corp providing more detailed information on mortgages and personal loans over the weekend. National Australia Bank was an early adopter of the ‘comprehensive credit reporting’ (CCR) regime, which the government introduced to increase banking competition.'

Link (paywall) -

Banks release customers' loan data to credit bureaus

CBA, ANZ, Westpac and NAB are now providing the full loan and repayment history of their customers to credit agencies.

www.afr.com

 

[lucky777]

I would be extremely surprised if you were given the correct information regarding the refund of your cards' annual fees. A company can't take money off you, not provide a service, and keep the fee! This would be against all sorts of consumer laws.

Perhaps if you have committed some type of fraud, or in the absence of fraud you have obtained benefits where AMEX has lost money - to the value of, or exceeding - your annual fee they might be entitled to keep it. But that certainly doesn't seem like the case here.

I can't even see how misleading on your income would justify the retention of the fee. All that would mean is cancellation of the card and a return of the fee.

I would stick in there. But if you don't get the right result, let us know! There must be action you can take.

Thanks. I have talked with amex manager and been told that I could lodge complaint via post (not email not fax). I am not yet decided if I should go to financial ombuzman direct, as this are more likely to be more effective.

 

[knagelli]

Thanks. I have talked with amex manager and been told that I could lodge complaint via post (not email not fax).

Based on your chat with Amex manager , did they give any indication on why your cards were cancelled in the first place and what was the reason for such a directive.

 

[Revolutionary String]

The whole series of events is really weird. OP, it seemed like you were pretty sure that your accounts would be closed back in August. If I can ask, why did you think this back then?

 

[MEL_Traveller]

The whole series of events is really weird. OP, it seemed like you were pretty sure that your accounts would be closed back in August. If I can ask, why did you think this back then?

I just reviewed that thread and the OP mentions their card was stolen with a $2000 spend. Maybe AMEX thinks the card wasn't stolen?

 

[wxxnxs]

I guess there should be more stories behind this case, otherwise I would assume AMEX will start closing many of us who are having their cards in here.