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AMEX need tax return, please help


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One of my friends almost max out $25K balance with AMEX and they suspended his charge privileges. They want the tax return paperwork by filling and faxing them out Form 4506T. The annual income he was stating when applied is way low. How to get around on this situation? He has stocks, 401K and ebay business transactions that can support the falsely stated income. What would be the consequences about this? Please help and advise. Thanks, Sam

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What do you mean when you say the income he stated when he applied was "way low"? He told them he makes less than he does?:confused:

When AmEx decides to do a financial review, it's serious business. The fact that your friend was asked for tax returns and not just paystubs means they really don't trust that he's good for what he owes.

AmEx will give you plenty of rope with which you hang yourself, happily handing out credit line increases every time you ask, then one day, BOOM! They want to know why you need so much credit and how you plan to pay them back if you max it out. They're unlike most creditors in that way. And if you made a mistake with them, even 30 years ago, good luck trying to get back in.

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He's gotten the full on financial review.

If he doesn't comply, they'll close the account.

If he does and his income is what he stated, he may be okay if he can pay the account. Otherwise, they'll close the account.

Note that if his income wasn't what he said and he files BK, they may try to get around discharge by claiming fraud.

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It's never a for sure thing with Amex. They MIGHT permit him to keep the account open.

In any closed account situation, when there is a zero credit limit (as a closed account has) and a balance due, that'll trigger adverse action from other creditors and tank one's fico anyway, so even if they permit paying over time, it's not a good idea FICO wise (or financially because of the interest).

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