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Amex's credit reporting loophole (?)


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As many of you know, I hate Amex... with passion. :twisted: In my efforts to search for other Amex victims, I ran across a website called amexsux.com. I found the posting below, and although I cannot attest to its validity, it sounds as if the author was able to successfully remove a negative Amex tradeline by closing the account (i.e. don't wait until Amex closes the account), then disputing it with the CRAs. Again, I cannot verify the validity of this method, but if you're currently heading the delinquency route with Amex, it won't hurt to try. Worst case scenario, you'll end up where you started anyway. Enjoy...

Source: http://www.amexsux.com/cgi-bin/yabb/YaBB.cgi?board=credit;action=display;num=1043860657

"Now that I'm done with AMEX and there isn't anything more they can do to damage me that they haven't already done, I'm going to publish something here that they will be extremely upset at my making public, but it's accurate information, and I'm under no obligation to withhold it....

This applies to anyone who currently has derogatory information on their credit report from AMEX. The law states that a creditor's derogatory entry against you can remain on your credit report for seven years, and the creditor is under no obligation to remove it.

The major bureaus have a dispute policy which states that any consumer has the right to dispute a credit report line item. When disputed, the bureau is required to notify the creditor in writing of the dispute and request updated reporting information. The creditor must repond to the dispute in writing within 30 days or the item is immediately deleted from your credit report. The well-published "trick" is to dispute all your derogatories every couple of months and hope that at least one of them misses the deadline to respond. That way, strictly by due process, items start to fall off your report. Lots of people know about this.

What I discovered after a lot of research and phone calls, is that AMEX has an undisclosed policy with the bureaus regarding disputes. AMEX was getting such a high volume of these, that they simply couldn't keep up with the paperwork, so they had to decide how to handle this and how to prioritize disputes. Ultimately, the policy was modified to state that AMEX would only respond to disputes against open accounts. If a bureau receives a dispute on an account where the "consumer relationship has been terminated", in other words, you called them and closed your account, then the bureaus have been instructed not to bother calling AMEX and just automatically delete the entry.

Now, here's how you take advantage of this....

If you owe AMEX money, or you're in default, or you simply have a derogatory with lates, etc, first call AMEX and make sure the account is CLOSED at your request. You do NOT have to pay off an account to close it. You just can no longer make new charges, which in AMEX's case is probably the case anyways.

Then, once you have confirmed by telephone that your account is closed (wait a few days), call the bureaus and order a copy of your report (shouldn't cost more than $12.95 on-line). When you receive it, call each of the bureaus and dispute the AMEX accounts. Within a week or so, you will receive a new report in the mail with all references to AMEX completely GONE forever.

Please make their screw-up your way to get even!

Good luck."

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That is an interesting notion, so this is on the basis, that AMEX still has the account & has not yet transferred it out to any collection agency.

And provided that you close the account before the grantor closes the account first.

That way, hopefully they don't consider this to be a priority to verify and that they slip up letting the account get deleted.

Interesting, sounds like it just might be do-able if they really do have a case overload of people disputing which I could believe for a company with a many customers as they have.

If a consumer was delinquent, they would also have the option of requesting re-aging prior to closing, if AMEX is of the mind to help their customers out, otherwise if you know you can't get their cooperation and that you won't be able to get caught up then yes this sounds like a possible way to go.

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Hi KB,

I saw your posting there... good point! :D I've been getting messages from a couple of Amex's victims since my posting there. I've helped them whenever I can, and I've also referred them to our forum and the CIC website. I just don't want to "advertise" our forum, because I don't want those slimy Amex reps to know what's coming to them :lol:

Regards,

TD

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Yea, I have a few other off the trail directions I have found over the months, try to help out when I can.

I read that one thread there to DH, and he said the same thing as one poster - that it should be printed and mailed to amex about their employees needing attitude ajustments, lol

Well what goes around comes around, :-)

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  • 1 month later...

might wanna follow this up with temporarily opting out of the bureau and also putting a fraud alert on your account. This oughta pretty well freeze your account and keep amex out of it...also, if your account is closed, i'm not sure if amex can legitly dig into it after that...

worth thinking about, haven't actually tried any of this, but might be a little sumpin' here.

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