Comments on: American Express Cancelled My Card With Them Because My Mom Defaulted on Hers After 32 Years. – Carl http://getoutofdebt.org/7540/american-express-cancelled-my-card-with-them-because-my-mom-defaulted-on-hers-after-32-years-carl Free debt help and debt advice on how to get out of debt, getting out of debt consolidation scams, and inside information on the debt relief and debt help industry. Mon, 13 Feb 2012 01:25:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Thomas Fox http://getoutofdebt.org/7540/american-express-cancelled-my-card-with-them-because-my-mom-defaulted-on-hers-after-32-years-carl#comment-13824 Thomas Fox Mon, 27 Jul 2009 10:13:57 +0000 http://getoutofdebt.org/?p=7540#comment-13824 Unfortunately, I am not surprised. It seems that more and more creditors are using voodoo matrix to avoid messy balance sheets. Unfortunately, I am not surprised. It seems that more and more creditors are using voodoo matrix to avoid messy balance sheets.

]]> By: Steve Rhode http://getoutofdebt.org/7540/american-express-cancelled-my-card-with-them-because-my-mom-defaulted-on-hers-after-32-years-carl#comment-13774 Steve Rhode Sun, 26 Jul 2009 21:19:08 +0000 http://getoutofdebt.org/?p=7540#comment-13774 Mark, I think it is a two part problem. The first part is that American Express wants to bring in as much money as quickly as possible now. Second part, is that AMEX has a formula that triggered the closure. The calculation probably says that if one person at an address defaults, it is more likely that something is happening in that household that could snowball. I think they are just being hypersensitive to avoid more losses. Unfortunately, in situations like this it becomes a self-fulfilling prophecy. If American Express simply sent a notice of closure but did not accelerate payments, then the cardholder might actually have a chance to repay. One last thing. American Express might just want to accelerate repayment if the person has a Chase card, for example. Creditors are greedy and each one wants all their money first, before anyone. The end result, is that if someone has multiple creditors, an action like this by American Express, can result in other creditors doing the same thing and leaving the consumer totally buried. Steve Mark,

I think it is a two part problem. The first part is that American Express wants to bring in as much money as quickly as possible now. Second part, is that AMEX has a formula that triggered the closure. The calculation probably says that if one person at an address defaults, it is more likely that something is happening in that household that could snowball. I think they are just being hypersensitive to avoid more losses.

Unfortunately, in situations like this it becomes a self-fulfilling prophecy. If American Express simply sent a notice of closure but did not accelerate payments, then the cardholder might actually have a chance to repay.

One last thing. American Express might just want to accelerate repayment if the person has a Chase card, for example. Creditors are greedy and each one wants all their money first, before anyone. The end result, is that if someone has multiple creditors, an action like this by American Express, can result in other creditors doing the same thing and leaving the consumer totally buried.

Steve

]]> By: Syllana http://getoutofdebt.org/7540/american-express-cancelled-my-card-with-them-because-my-mom-defaulted-on-hers-after-32-years-carl#comment-13764 Syllana Sun, 26 Jul 2009 18:44:06 +0000 http://getoutofdebt.org/?p=7540#comment-13764 Carl, it never ceases to amaze me how creditors depend upon the "fear factor" and their assumption that they are in charge. They are in fact not in charge, especially if you have no assets. You just need to know this. AMEX ought to realize that your options are either to pay, or not pay. It seems pretty clear to me which would be better for them. Carl, it never ceases to amaze me how creditors depend upon the “fear factor” and their assumption that they are in charge. They are in fact not in charge, especially if you have no assets. You just need to know this. AMEX ought to realize that your options are either to pay, or not pay. It seems pretty clear to me which would be better for them.

]]> By: Mark @ TheDebtHawk.com http://getoutofdebt.org/7540/american-express-cancelled-my-card-with-them-because-my-mom-defaulted-on-hers-after-32-years-carl#comment-13763 Mark @ TheDebtHawk.com Sun, 26 Jul 2009 18:29:36 +0000 http://getoutofdebt.org/?p=7540#comment-13763 I am very sorry that this is happening to you Carl. It is a shame that they accelerated your payments like this. Steve, do you think that the accounting rules applicable to credit card companies are causing these types of account closings? I know that credit card companies are working hard to clean up their balance sheets, but I am hearing more and more people talk about their cards being cancelled. .-= Mark @ TheDebtHawk.com´s last blog ..<a href="http://feedproxy.google.com/~r/TheDebtHawk/~3/TTLok8gOg24/this-week-in-personal-finance-july-26" rel="nofollow">This Week In Personal Finance – July 26</a> =-. I am very sorry that this is happening to you Carl. It is a shame that they accelerated your payments like this.

Steve, do you think that the accounting rules applicable to credit card companies are causing these types of account closings?

I know that credit card companies are working hard to clean up their balance sheets, but I am hearing more and more people talk about their cards being cancelled.
.-= Mark @ TheDebtHawk.com´s last blog ..This Week In Personal Finance – July 26 =-.

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