Draft your settlement proposal letter. Include your name, account number, the total outstanding balance and the amount of your offer. You may also choose to include information related to your current financial situation and an explanation of why your account became delinquent.
Full Answer
Who can apply for the American Express Optima card?
The American Express Optima card is a ‘second chance’ card with a $49 annual fee. Who Can Apply For This Card? It’s not possible to apply for this card directly, you need to be invited to apply.
How do I settle American Express credit card debt?
Settling With American Express. American Express settlement typically requires a lump sum payment that is less than your current outstanding credit card balance. The payment is given in exchange for the company settling your debt.
How do American Express settlements work?
American Express settlement typically requires a lump sum payment that is less than your current outstanding credit card balance. The payment is given in exchange for the company settling your debt.
Is the AMEX Optima secured or unsecured?
The Amex Optima is an unsecured card, where the Discover it® Secured Credit Card offers a card requiring a deposit as cash collateral. Where the general public can apply for the Discover it® Secured Credit Card, only those who’ve defaulted upon and settled accounts with American Express might be invited to apply for the Amex Optima.
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Does American Express offer settlements?
American Express rarely negotiates debt settlements directly. Unlike other large banks, American Express does not have an internal debt settlement division. Amex accounts can be sent to collections agencies (such as Zwicker and Associates) after a few missed payments, as a result.
How do I file a claim with American Express?
How Do I File a Claim? American Express makes it easy – you can file your claim online or by giving us a call at 1-800-322-1277; if international, call collect at 1-303-273-6498. You will be asked certain questions about your claim at that time.
Will Amex give me another chance?
Amex does have a reconsideration line which you can call at 1 (800) 567-1083 in case your Amex application got denied. By talking to someone you can explain any information on your credit reports that might have gotten you rejected. They may or may not change their minds, but you should definitely give it a try!
What happened to the Amex Optima card?
Although the Optima Platinum card has officially been discontinued for years now, it's rumored that Amex will still invite people to apply for the card if another of their Amex credit accounts has been charged off.
Does Amex have section 75 protection?
American Express charge cards are not covered – including the The Platinum Card. However, Amex chooses to voluntarily match Section 75 protection although it is not legally obliged to. Section 75 only applies if you paid directly.
Can I buy a house with American Express?
Absolutely not. Kipp says that this is one of the top misconceptions about the program. The only involvement from American Express is the bonus you get after closing; you aren't actually using your credit card to purchase the house, nor are you using it to pay any deposits, title costs or mortgage fees.
What is the 5 24 rule?
What is the 5/24 rule? Many card issuers have criteria for who can qualify for new accounts, but Chase is perhaps the most strict. Chase's 5/24 rule means that you can't be approved for most Chase cards if you've opened five or more personal credit cards (from any card issuer) within the past 24 months.
What is minimum credit score for American Express?
According to the score ranges from FICO, that means American Express applicants typically have at least a 670 score: Exceptional. 800 and above.
How do you get a black Amex card?
You'll need to pay a one-time initiation fee of $10,000 on top of a $5,000 annual fee just for the privilege of having a Black Card. Plus, adding other cardholders costs an extra $2,500 each per year. In comparison, the Platinum Card's annual fee is $695 per year for many of the same services.
How does Amex Optima work?
The Amex Optima* is American Express' exclusive card for those with bad credit. Available by invitation only to Amex Members who've settled debts with Amex in the past and who need help rebuilding credit, the card offers no rewards, no perks and charges an annual fee.
What collection agency does American Express use?
Amex primarily pulls Experian, though sometimes Equifax or TransUnion reports. Chase favors Experian, but may also buy Equifax or TransUnion reports.
Will American Express reinstate a Cancelled account?
If American Express closed your accounts, you can try calling Amex to ask for reinstatement. However, affected cardmembers are reporting numerous transfers and long holds when calling Amex about their situation.
Do all American Express cards have purchase protection?
Every consumer American Express card offers purchase protection. The coverage maximums vary by card, though. Most offer up to $1,000 per covered purchase. A premium card with a higher annual fee may offer up to $10,000.
How do I claim my Amex extended warranty?
How to file an extended warranty claim. Go to the Amex extended warranty claims webpage to file online. After logging in, click "File a Claim." Go through the online claim process and provide the required information. If you'd like to file your extended warranty claim over the phone, call 1-800-228-6855.
How long is Amex purchase protection?
Purchase protection will reimburse you for theft or accidental damage to eligible items that occurred within 90 days of purchase. To be eligible, all you have to do is charge a portion of your qualifying purchase to your American Express card — but you'll only be reimbursed up to the amount charged to your card.
How do I use Amex return protection?
This purchase protection offers reimbursement for eligible purchases made with certain Amex cards. If you try to return an item to a store within 90 days of purchase and the retailer will no longer take the item back, Amex will refund you the cost of the purchase.
How much of your American Express balance will you settle?
You can probably expect to settle for 30% – 60% of the original balance. Factors like length of repayment and time since the last account activity help drive the ultimate settlement amount. Bottom Line: American Express offers a financial hardship program to help manage your debt in the short term.
When is a credit card company most likely to consider debt settlement?
Credit card companies are most likely to consider debt settlement if collecting more than the proposed settlement amount over time seems unlikely or not worth attempting. As a result, debt settlement usually comes into play after several missed or late payments.
How long does Amex take to pay off a credit card?
If you pursue this option, Amex will work with you to setup a payment plan spanning from six to 12 months, depending on the debt. You can pursue this option for your unsecured debt (personal loan or credit card) via online chat or by calling customer service at 1-866-703-4169.
How to negotiate a credit card debt?
Before negotiations begin, use the credit card (s) in question only for essentials and attend a credit counseling session to learn about your options. This will show the creditor that you are acting in good faith and only pursuing debt settlement as a last resort. This will go a long way in improving your chances for a more favorable debt settlement.
What is the difference between debt management and debt settlement?
The biggest differences between debt settlement and debt management are the amount of debt paid off and how long it takes. Other key differences between debt settlement and management include their credit impact, tax consequences, payment frequency and amount, and fees, among others. Debt settlement is the process of negotiating.
What happens if you settle a debt over 180 days?
If your account is over 180 days past due, you’re more likely to interact with a collection agency.
What percentage of debt is accepted in a settlement?
The percentage of a debt typically accepted in a settlement is 30% to 80%. This percentage fluctuates due to several factors, including the debt holder’s financial situation and cash on hand, the age of the debt, and the creditor in question. The debt settlement company you decide to work with pl
Which is better, Amex or Bank of America?
From what we know about the Amex Optima, the Bank of America card seems like the better option. The reality may be, however, that those with damaged credit may not be able to receive approval even for a secured card and may need Amex’s help digging themselves out of a bad credit hole.
Can you repair your American Express card faster?
That said, those who have the opportunity to repair their status with American Express may be able to do so faster through the American Express Optima Card, if given the option, than by rebuilding through other banks. If given the option to apply for the American Express Optima card, it makes sense to review the terms of the card and compare to other available options.
Does Bank of America have a cash back secured card?
The Bank of America Cash Back Secured Card offers rewards and an array of standard Bank of America credit card perks, like $0 fraud liability and access to FICO score. It does not charge an annual fee, but does require a deposit.
Is Amex Optima unsecured?
The Amex Optima is an unsecured card, where the Discover it® Secured Credit Card offers a card requiring a deposit as cash collateral. Where the general public can apply for the Discover it® Secured Credit Card, only those who’ve defaulted upon and settled accounts with American Express might be invited to apply for the Amex Optima.
What is pre-qualifying for a credit card?
Pre-qualifying for a credit card is a bit like landing a job interview— you know for sure you’re in the running, but there are still no guarantees. In this stage, lenders determine—primarily based on your credit history—whether you meet certain requirements.
How old do you have to be to apply for a credit card?
How to Apply for a Credit Card—The Basics You Need to Know. You may want to think twice about applying for any credit card if you: Are under 21 (unless you have your parents' permission or verifiable income); Don’t have a Social Security number; Are unemployed.
How long does a credit card application stay on your credit report?
Federal Reserve numbers show that in October 2018, for example, more than one in five credit card applicants were turned down.1 Experts point out that failed applications will knock points off your credit score, and the attempt will be visible on your credit report for as long as two years.2.
What happens if you don't pre-qualify for a credit card?
So, if you don’t pre-qualify for a credit card, you can spare yourself the ding on your credit.
What is the American Express Optima card?
This card was American Express’ first credit card offered (previous cards were charge cards) that originally launched in 1987.
What Benefits/Earning Rates Does This Card?
Like most cards aimed at those with poor credit this card doesn’t come with any real benefits for the $49 annual fee. It’s also not a rewards earning card.
Does American Express have secured credit cards?
American Express then offers this card as an option once these balances have been settled. American Express doesn’t offer a secured credit card, so this is an alternative to that. Sometimes these are referred to as second chance credit cards.
How did American Express violate antitrust laws?
Class Plaintiffs claim that American Express violated the antitrust laws by imposing rules that limited merchants from steering their customers to other payment methods and that required merchants that want to accept any American Express cards to accept all American Express cards. The Class Plaintiffs claim that these rules insulated American ...
What happened to American Express in 2014?
On February 4, 2014, the U.S. District Court for the Eastern District of New York granted preliminary approval of a settlement among American Express and all merchants who accept American Express cards settling two class action lawsuits. Class Plaintiffs claim that American Express violated the antitrust laws by imposing rules ...
What was the denial of the settlement based on?
The denial of the settlement was based on procedural grounds and the Court did not rule on the substantive aspects of the settlement. Class Counsel. The law firms identified below have been appointed by the Court to represent you and other class members.
What is settlement with American Express?
Settling With American Express. American Express settlement typically requires a lump sum payment that is less than your current outstanding credit card balance. The payment is given in exchange for the company settling your debt.
How long can you pay a settlement?
You might be able to pay your settlement over a six to twelve month period but a single payment will give you the best opportunity for significant savings. There are a few things you’ll need to do before you settle your debt: Stop payments – If you haven’t already, you will need to stop making payments on your account.
What are the negatives of settling credit card debt?
While this may seem like a quick fix to your overwhelming credit card debt, there are some negatives to settling: Your current credit card accounts may end up closed, meaning you won’t be able to use them. This is not the most ideal path if you plan to open another credit card in the future.
How long does it take to pay off American Express?
This could take you several months, depending on your current assets or how long it takes you to secure the funds. Some ways to gather enough money include selling your personal possessions, tax refund, ...
What to do if you have lost your American Express credit card?
If you’ve lost your income and have fallen behind on your credit card payments, a settlement might be your best option. Work with a debt counselor to evaluate your current financial situation. They will help you understand the pros and cons of an American Express settlement.
Why is American Express important?
banks in financial distress. This is important because of the distinctions between the different methods of collection by creditors. American Express doesn’t sell off its accounts but does assign bad debt to attorneys and debt collectors.
Why is American Express not a credit card company?
Settling with American Express is not like most credit card companies because prior to November 2008, it was not a bank holding company structure. It converted specifically to qualify for Treasury Department assistance under the Troubled Asset Relief Program (TARP). This program allowed the United States government to begin the bailout of U.S. banks in financial distress.
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