Forgiven By AmEx? Not So Fast!

[PotO]

It seems there are degrees of forgiveness in the world of American Express.

 

A little background ...

 

Around 1990 a cousin committed ID theft and opened up a boatload of accounts and then, unsurprisingly, cashed them out and skipped town. Strangely, none of the 15+ creditors called my brother, wrote him or even reported the derogatories to his credit reports. AmEx was amongst the victims. The only clue was when several years later the state police dropped by and asked my brother to make a statement. Apparently they were smart enough to figure out that it wasn't him, but someone else and they had a good idea who that someone else was. They just wanted me to confirm it. Well, he was not going to drop a dime on the relative no matter what. Yet he also did not want to see a felon get away free.

 

The prosecutor agreed that if he went before the grand jury and an indictment was returned, they would offer the relative a chance to make complete restitution to avoid prosecution. The relative made restitution and everybody was happy. Except AmEx. In spite of calls from the state AG and speaking with the police, they still kept my brother blacklisted with the b.s. excuse that "AmEx closed your previous account." Every once in a while he would apply knowing that if blacklisted they wouldn't even pull his credit reports. Finally last November he applied and was approved. The limit on his Blue was only $3,000, but what the hell. He was finally back in with backdating to 1990.

 

Now ...

 

After about four and a half months he tried for a CLI. Denied.

 

"Your American Express account(s) indicates previous delinquencies."

 

So, it seems that AmEx does forgive, just not so much. I suggested he just keep the card open and use it once a month or so for some minor purchase.

 

Anybody with similar experiences?

Edited March 12, 2013 by PotA

[hegemony]

amex, unlike more issuers, is judicious with managing its risk. the forgiveness was the new approval. it sounds like this new account is also very young. he should keep it open and PIF and ask a CSR for a CLI when it is over 12 months old.

[PotO]

Good idea, Hegemony. Do you think after a year or so AmEx will increase their level of forgiveness and up him to, say, $5k with a CSR CLI?

 

I actually told him that going for the AmEx 61-day 3x CLI was probably not prudent. Guess I was right. Just hope they don't FR him or anything.