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Offer from Amex, will reinstate card membership with payment

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Everyone:

I had an Amex account years ago. I was a bad monkey and it became a CO. The debt has long since passed statute, and seven years have lapsed so this negative TL is no longer reporting, either.

I got a letter from Amex today offering to reinstate my card if I pay my collection balance of $825. I am a little wary because the letter reads that I will be sent a pre-approved application upon payment... I was expecting the pre-requisite field of asterisks after that statement, but there was none. The letter goes on, and I quote: "Your application will be approved unless you have filed for bankruptcy, do not make the payment required, or have an existing open AMEX charge card relationship."

I have no bankruptcy, will make my payment, and do not have an existing AMEX relationship. Could this possibly be a way to get my AMEX back? Or is this just a trick to get me to pay past statute and then pull the rug out from under me?

This ever happen to anyone else?

THANKS

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This is known as the Oasis program. It's legit. Whether or not you accept it depends on your desire to be back in the AmEx fold. It's probably the only opportunity you will ever get to have an AmEx again because they have a loooooong memory.

If my past mistakes with them totaled only $800 and they offered me this, I'd take it in a heartbeat. But this is a decision only you can make. Call them and ask about it if it will make you feel better... then decide if a second chance at prime credit with AmEx again is worth $825 to you.

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You need to call them to find out what the current deal is but this is what it was about a year ago... You would pay the CO amount and they gave you an Optima card that had a credit limit of half of what you paid. So if it works like it used to, in your case you would pay them 825 and get a credit limit of 412.

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With the Oasis program you would have to pay the balance in full? You would not be able to make a settlement with them?

They used to send two letters, the "pay in full and get the Optima card" letter followed 30 days later by a "pay 40% and we will consider it done with" letter. But if you ever want another card from them you have to pay the full amount. All my information is a least one year old. They may have a different deal now.

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I recv'd the same offer but my old balance is claimed to be over $5000. I am now on public assistance so taking them up on it (even at a percentage) is not an option.

When their collections dept first called looking to collect this debt (15 years ago) they were informed how I was of some diminished capacity and should never have been issued a card to begin with.

They must have immediately done a write off as there was never any entry on my credit reports and I never heard from them again... Until this week!

QUESTION #1: Am I legally obligated to repay?

QUESTION #2: Should I ignore the letter entirely or contact them and have them re-visit the original write off?

Thx all

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Wait... they're attempting to collect on a debt from over 15 years ago? A debt that has been past the SOL for years? Who is this letter from exactly?

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The SOL thing is my dilemma too. This debt is over seven years old-- the SOL for legal action is long-since passed, and the federal reporting statute has also lapsed. Hence, it's not on any of my bureau reports, it's like it never happened.

My fear is that I will pay this, and since it's with an OC, it will reage the account and start the bad information all over again. I definitely don't want that-- but I also want a prime card like Amex again--

Will this re-age the acct since it's the OC?

hints?

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All of this is actually very interesting. If the debt is out of SOL, this "rehab" offer could indeed be construed as a collection attempt...

But I've never heard of AmEx placing an old negative on someone's CR for participating in this program. That of course doesn't guarantee anything. You should really call them up and ask how it works, with specific questions about what becomes of the old TL. You might even mention that the debt is SOL and ask if this is a collection attempt... and if you are allowed to tape convos in your state, do so.

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>> If the debt is out of SOL

Is there a NY law I should cite for the SOL if/when I speak to them?

>> this "rehab" offer could indeed be construed as a collection attempt

>> But I've never heard of AmEx placing an old negative on someone's

>> CR for participating in this program. That of course doesn't

>> guarantee anything.

Aren't the CR agencies *not allowed* to add a SOL to a CR?

>> You should really call them up and ask how it works, with specific

>> questions about what becomes of the old TL.

What's a TL. (I had a different idea what SOL was until I ready this thread!)

>> You might even mention that the debt is SOL and ask if this is a

>> collection attempt and ...

What does that gain me that I might need to...

>> ... if you are allowed to tape convos in your state, do so.

Also an update: I just recv'd the discounted offer to pay 60% so I can get an Optima card.

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