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Got hit with a Financial Review on my Amex Platinum Business card!! Now what?

the.J129 2,027 July 9, 2012 at 08:57 AM in Finance (8) More American Express Deals
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So here's what happened- I wanted to get some detailed information about the travel insurance that they offered, so I called their helpline. Either I somehow got transferred to their financial department, OR they had my account flagged, so that if I called, the call would go to the financial department.

Anyway, that's what happened. The analyst began asking me questions about my business (Which I listed as ebay.Wink) And my total annual income.
So, then she asked me for my email address, and told me that she was going to email me a form, and THAT'S when it struck me that this was a financial review!! MadMadSo, the card has been placed on hold. I asked her, what triggered the review. She said that they are just doing the review to make sure that "Based on your income, you're getting the best value and service from this card"


Now, when I was applying for the card, (I did it over the phone) I specifically asked the rep, if he wanted me to mention the annual income as it appeared on the Tax return? Or if he wanted the total, including what I made through eBay and various other sales, that I am NOT required to report to the IRS? He said, to give him the entire amount...Now the analyst tells me that they will get in touch with the IRS to get a copy of my tax return and verify what my annual income is...and this is NOT going to match what I told the rep when i was signing up...


So, long story short, I've been told to get back to them ASAP. And the analyst ASSURED me, that as long as I reply, to them there is NO chance of them cancelling my card. I'll just be given some sort of spending cap. And that is fine by me! She also said, that they don't want to cancel my card, and the ONLY way that i could get the card cancelled was if I didn't reply to that email.
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TL;DR- Got hit with a Financial review on Amex Platinum Business card. Now what?


Has anyone gone through one of these? I wonder what triggers them? I have not done any MAJOR spending on the card. I've only charged around $500 to it.

I hope they don't cancel it...because if they are, then I'd like to beat them to it. I'd rather have it show on my report that I cancelled my card rather than Amex cancelled it. Roll Eyes (Sarcastic)
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38 Comments

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#16
Quote from dzap View Post :
Ummm yeah. That's probably why.

First off, it's a Plat Amex.

Secondly, it's a business amex.

I charge more than that a month on my Amex Zync.
I am a loley middle class worker with no kids and charge 6-8 times that monthly. I must be doing something wrong.
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#17
Quote from sd99 View Post :
How are you not required to report your other income?
He is, but he doesn't. Most of us do something similar
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CDI gave me free netflix!
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#18
Quote from nizzy1115 View Post :
I am a loley middle class worker with no kids and charge 6-8 times that monthly. I must be doing something wrong.
I wouldn't say you are a "lowly middle class worker" if you can charge $3000-$4000 each month and pay that off in full each month (unless that is like your only bill you pay each month).

You're definitely upper middle class if you can put $36k-$48k on a charge card each year.
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#19
Quote from dzap View Post :
I wouldn't say you are a "lowly middle class worker" if you can charge $3000-$4000 each month and pay that off in full each month (unless that is like your only bill you pay each month).

You're definitely upper middle class if you can put $36k-$48k on a charge card each year.
Bigeye It sure doesn't feel that way.
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CDI gave me free netflix!
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#20
Quote from nizzy1115 View Post :
Bigeye It sure doesn't feel that way.
Really? So what..no other expenses? It sounds like your household is making like $100k+ a year. I think you need to cutback on shopping at Emporio Armani everyday. laugh out loud

Maybe sell one or two of your Rolls Royces and downgrade to a BMW.
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I beat the Kobayashi Maru
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#21
Let me start off with Full Disclosure. The ONLY reason why I got this card is because I got a targeted offer of 100k. You can judge me if you want.


Quote from dzap View Post :
Ummm yeah. That's probably why.
First off, it's a Plat Amex.
Secondly, it's a business amex.
I charge more than that a month on my Amex Zync.
Well, I wasn't aware that there was a minimum spend required each month. So what if I have only charged $500 to it? I got it a week ago. And over the next few months, I was planning on moving most of my spending over to this card to meet the threshold of $5k by November 12th (my deadline)


Quote from sd99 View Post :
How are you not required to report your other income?
Quote from Formless View Post :
He is, but he doesn't. Most of us do something similar

Well, it's not like my other income is in the tens of thousands. I'm just a student. And part of that extra income comes from family and flipping electronics on eBay and overseas. Only half of the 10k that I didn't report came from selling something. ALSO- I was under the impression that you got the 1099 from Paypal only after crossing 200 transactions AND $20k in sales? No?

Quote from nizzy1115 View Post :
I am a loley middle class worker with no kids and charge 6-8 times that monthly. I must be doing something wrong.
Ummm... I can't afford to charge $4000 a month.

Quote from dzap View Post :
I wouldn't say you are a "lowly middle class worker" if you can charge $3000-$4000 each month and pay that off in full each month (unless that is like your only bill you pay each month).

You're definitely upper middle class if you can put $36k-$48k on a charge card each year.



My point exactly. Thank you!
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I don't understand why everyone expects me to be spending hundreds of thousands just because I got the Business Platinum. Now, I know someone'll say that "But it's Platinum, this card is meant for the uber-rich!" Ummm....I didn't ask for it! I was targeted.


I think why my account got the FR is beside the point now. I just don't want to get that card cancelled.
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#22
Quote from dzap View Post :
Really? So what..no other expenses? It sounds like your household is making like $100k+ a year. I think you need to cutback on shopping at Emporio Armani everyday. laugh out loud

Maybe sell one or two of your Rolls Royces and downgrade to a BMW.
Ha funny. Smilie I wish I could afford a bmw, but a mazda and kia are what we've got laugh out loud

Were still in that stage of buying nicer stuff for the house, fixing it up, and enjoying life while we can (before kids) - eating out often and doing fun things a lot. I guess it just all adds up fast.

Edit: I forgot golf. F'ing courses are so expensive. But I like to play 18 with a cart as often as possible.
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#23
Quote from the.J129 View Post :
Well, it's not like my other income is in the tens of thousands. I'm just a student. And part of that extra income comes from family and flipping electronics on eBay and overseas. Only half of the 10k that I didn't report came from selling something. ALSO- I was under the impression that you got the 1099 from Paypal only after crossing 200 transactions AND $20k in sales? No?
Oh, don't get me wrong - I do the same thing.

However, you are legally required to report any dollar of income. Receiving the 1099 is only a reminder of that and meant to help you track the amount when it gets to a higher amount.

Be careful with what you do/don't claim on your taxes. Law is one thing, reality is another (much like how many of us on SD don't enjoy paying sales tax on online purchases, but we're technically required to pay the sales taxes on everything we buy - we just don't).
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#24
Quote from the.J129 View Post :
Let me start off with Full Disclosure. The ONLY reason why I got this card is because I got a targeted offer of 100k. You can judge me if you want.

Well, I wasn't aware that there was a minimum spend required each month. So what if I have only charged $500 to it? I got it a week ago. And over the next few months, I was planning on moving most of my spending over to this card to meet the threshold of $5k by November 12th (my deadline)

Well, it's not like my other income is in the tens of thousands. I'm just a student. And part of that extra income comes from family and flipping electronics on eBay and overseas. Only half of the 10k that I didn't report came from selling something. ALSO- I was under the impression that you got the 1099 from Paypal only after crossing 200 transactions AND $20k in sales? No?
Now I'm even more confused. I'm in the SAME situation as you. I was a student till this past Spring. Parents were covering nearly all my bills, and the one or two times I had significant income was due to eBay flipping/etc, and I guess that allowed me to sign up for cards left and right without question. I have an AMEX Biz Gold and Personal Plat, had an AMEX Gold before. I got all these just to get the 250k points - same as you. Just churn cards for the perks and close em. Keep my credit well over 750.

What I don't get is why you got the review specifically. I've opened/closed nearly 20 cards all while being a student. Never had this come up as an issue. My brother got a financial review when trying to open his first or second card though. Seems really random to me.
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#25
Quote from 1stbuy View Post :
Now I'm even more confused. I'm in the SAME situation as you. I was a student till this past Spring. Parents were covering nearly all my bills, and the one or two times I had significant income was due to eBay flipping/etc, and I guess that allowed me to sign up for cards left and right without question. I have an AMEX Biz Gold and Personal Plat, had an AMEX Gold before. I got all these just to get the 250k points - same as you. Just churn cards for the perks and close em. Keep my credit well over 750.

What I don't get is why you got the review specifically. I've opened/closed nearly 20 cards all while being a student. Never had this come up as an issue. My brother got a financial review when trying to open his first or second card though. Seems really random to me.
Maybe in addition to set triggers they have random reviews as well?
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#26
Quote from nizzy1115 View Post :
Maybe in addition to set triggers they have random reviews as well?
It really sounds like it. Luckily I'll have an income sooner than later. Needa watch my back until then though!
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#27
Quote from the.J129 View Post :
What's AA and chasing the balance?


I have NO problems with a reduced spending limit because I'll be frank and honest here. The ONLY reason why I applied for this card was to get the 100k bonus points. There was a $450 fee involved, but it's offset by a lot of things..which are beside the point, right now.


Jeez. This sucks.
Adverse Action (closed account) and chasing the balance is when the credit card company reduces your credit limit to the current balance on your card. This type of behavior usually continues until the computer feels you are no longer a risk.

But after reading you have a Platinum card (IIRC this is a no preset spending limit card), I suppose chasing the balance does not apply.
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I beat the Kobayashi Maru
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#28
Quote from Formless View Post :
Oh, don't get me wrong - I do the same thing.

However, you are legally required to report any dollar of income. Receiving the 1099 is only a reminder of that and meant to help you track the amount when it gets to a higher amount.

Be careful with what you do/don't claim on your taxes. Law is one thing, reality is another (much like how many of us on SD don't enjoy paying sales tax on online purchases, but we're technically required to pay the sales taxes on everything we buy - we just don't).
Okay..how likely do you think I'm going to get into any serious trouble over this?
AMEX told me that they don't report anything to the IRS. all they are going to do is ask the IRS to supply that income tax information to them.

Quote from 1stbuy View Post :
Now I'm even more confused. I'm in the SAME situation as you. I was a student till this past Spring. Parents were covering nearly all my bills, and the one or two times I had significant income was due to eBay flipping/etc, and I guess that allowed me to sign up for cards left and right without question. I have an AMEX Biz Gold and Personal Plat, had an AMEX Gold before. I got all these just to get the 250k points - same as you. Just churn cards for the perks and close em. Keep my credit well over 750.

What I don't get is why you got the review specifically. I've opened/closed nearly 20 cards all while being a student. Never had this come up as an issue. My brother got a financial review when trying to open his first or second card though. Seems really random to me.
Quote from nizzy1115 View Post :
Maybe in addition to set triggers they have random reviews as well?


I don't know either. I really hope they don't cancel the card. damn.

How often do FRs take place? I was going to sign up for some more Amex cards to get Hilton points...but if this is a common thing, then I don't want to apply for Amex again.


Furthermore, my credit card apparently reimburses me the cost of applying for Global Entry. I've applied already. If they do end up cancelling the card, would they reimburse me that cost first?


Also- if THEY close the accounts, would that information ever come off of my credit report? Or would it be there for all eternity?
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#29
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#30
Quote from the.J129 View Post :
Okay..how likely do you think I'm going to get into any serious trouble over this?
AMEX told me that they don't report anything to the IRS. all they are going to do is ask the IRS to supply that income tax information to them.

I don't know either. I really hope they don't cancel the card. damn.

How often do FRs take place? I was going to sign up for some more Amex cards to get Hilton points...but if this is a common thing, then I don't want to apply for Amex again.

Furthermore, my credit card apparently reimburses me the cost of applying for Global Entry. I've applied already. If they do end up cancelling the card, would they reimburse me that cost first?

Also- if THEY close the accounts, would that information ever come off of my credit report? Or would it be there for all eternity?
The only thing I see as an issue here is AMEX somehow blacklisting you for awhile. If youre never having an issue paying bills, I think its dumb though.

Just send a secure message and request them to credit the global entry. They process requests very quickly for Plat card holders (for obvious reason). I got my global entry as well, finally get to use it next month. Do you get the $200 airline incidentals? Im not sure with the Biz Plat, use that quickly too if you do, and buy the 4 AA $50 GC. Also, I dont know of any good Hilton card sign-up bonuses right now anyways. There was a 60k card at one point, with no annual fee, I stored that card. Just get this FR mess figured out and then apply when a legitimate sign up bonus comes up for Hilton or the SPG cards.

Funny you mentioned it, I was actually reported to the IRS once by PayPal for my transactions/sales (exceeding way over 200 & $20k). Luckily I paid up quick and had no issues, but that wasnt a fun letter to receive. It seemed to have no relevance on my CC applications though. Dont think thats the issue. I think this is solely AMEX checking up on you cause its your first AMEX and you went straight for the big money Plat card. (These have no official spend limit, cause theyre charge cards.)
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