Double Rip-Off By AMEX On Small Business Account.
Date: Thu, 02/05/2009 - 10:40
She has continued to pay this off until she is down to the current $30K when 2 days ago she got wind that they are raising her current rate of 14% to 27. From what I have found this is a pretty common practice for these crooks and they were willing or so oblivious that they were willing to shoot themselves in the foot over nothing. She got this information by looking at her account on the net and hasn't gotten the official notification as yet in the mail. She contacted customer service and they said they would call back and of course never did. That is where we are at the present time.
She has heard that they will likely settle for around $10K if she holds out and stops paying. We have no other debt issues and never had and have most everything paid off otherwise. The only debt we plan on incurring down the road is our one daughters college. This Amex account is in no way attached to myself or any of our other assets. If this had happened last Spring I would have simply borrowed against my retirement account paid them off and told them where to go.
Long story short we have had it with these ignorant creeps so exactly what are the consequences of holding out for a settlement besides the taxes on the settled amount? If this is viable when and how is this done exactly, wait and don't pay or preempt? Any other things that can crop up that we haven't thought of? Consider this as coming from folks who are anything but desperate , just really mad and not about to be bullied. Sorry if this is verbose but I wanted to spell it out as clearly as possible.
I guess I'm not sure how they "double ripped you off". But you
I guess I'm not sure how they "double ripped you off". But you are unhappy with them, and I see why.
A couple of things I am wondering: Did you open a new credit card account, or is closing the AMEX affecting your wife's business? Do you have the funds, or income to make payments to pay the remaining $30k off over a reasonable period of time?
You are upset with AMEX but I don't think that's real justification for not paying the debt back. Particularly if you can pay it or make payments. And I think that most unsecured creditors will see it the same way. And I think if they see that you are current on all other payments (cards that are paid off each month, perhaps a new card for your wife's LLC), that they will probably not want to settle with you. Basically, what I am saying here is that the downside is that they will not settle with you at the 33% you think they will. If they think you can pay, but aren't, I think they might sue you. Potentially they can get a lien on your property or garnish wages, etc. Settlement is generally reserved for those who can't make payments, not those who choose not to make payments --- that's how AMEX will see it.
So I think you are running the risk of something along those lines, and it probably isn't worth it if you can afford to pay it.
I hope I didn't seem insensitive to your situation. I do understand that you are upset, and I personally don't understand why they'd want to treat a good customer like that and drive them away.
