Do I have to deal with debt collectors for American Express?
I stopped paying my American Express account when I got laid off. I am working again, and it has taken this long to catch up with most bills. I want to tackle this one, but I cannot pay the full amount.
Can I call American Express and set up payments? I got an offer to pay less than the full amount from a different debt collector than who has my account now. Can I agree and set up payments for that amount with the new collection firm?
How can I deal with a debt collector for American Express?
—Maria
American Express handles little of the collection activity for the credit cards people fall behind paying. Your options for dealing with Amex accounts that are already placed with a debt collector, or collection law firm, are going to be limited to working things out with the collectors in most cases.
You can pay or settle with debt collectors on American Express credit cards at the different stages of collections. Below is general information about resolving an AMEX account. I can get more specific with each individual persons situation when you provide details using any of the three below boxes (ask a question, request a settlement estimate, schedule a call with me).
Be sure to read through all of the options I outline in this article, including how American Express will update your credit reports.
You are Less than Ninety Days Late with American Express
American Express has some programs available for repayment when you are struggling with your finances. You can call a customer service rep at AMEX, and if early enough (within a few months of missing payments), they can help you bring your account current, or enroll you in a temporary repayment plan. These plans are generally going to offer you a lower monthly credit card payment for several months, and often up to a year.
The lower AMEX bill is because they are dropping your interest rate down during the months you are on the hardship plan.
Try to avoid taking advantage of any short term payment plan if your financial setbacks are not just temporary. You have no assurance the AMEX will extend the lower payment plan once your time on the temporary plan is up. That means your monthly payments will go back up, and may still be out of reach.
American Express also regularly works with nonprofit credit counselors who can get your monthly payments reduced, and get your interest rate lowered for the life of the balance, or while paying through the counseling agency, which can last up to five years.
You can be current with your credit card payments and still work with a counselor to pay your American Express bill each month.
If you are not yet 3 or more months delinquent in paying your AMEX credit card, and would like to see if you can get a lower monthly payment for the life of the balance, I would encourage you to consult with a credit counselor and get an exact payment quote at 800-939-8357, choose option 1.
If you have more than one or two credit cards you are struggling with, a counselor can help you consolidate most or all of those accounts into one lower payment.
Unpaid American Express Credit Cards are Not Sold to Debt Buyers
One of the first things to point out to people dealing with American Express accounts in collection is that they do not sell debt.
Many major credit card issuers sell off some of their credit card bills (that remain unpaid long enough) to debt buyers. AMEX does not bundle up unpaid credit card accounts to sell off as a general practice. That is not to say AMEX will always retain ownership of their delinquent debts. Bank policies do change from time to time, and operational realities could lead to AMEX changes too. But for now, AMEX is ultimately the legal owner of your unpaid credit card account.
This is an important distinction to point out. There are situations where someone dealing with a debt buyer collecting will have additional strategies to consider.
Amex is also one of few credit card lenders of its size that has no internal recovery and collection department to speak of. That is not to say they are lacking in customer service for their credit card account holders who do call you frequently in the first couple of months you are late. But once your account is behind enough to be dropped into their collection pipeline, you are typically not going to be connected to internal AMEX collection resources. You are, more often than not, going to be routed to third party collectors that AMEX sent your account to.
If you have had financial setbacks that caused you to stop paying American Express, but your accounts are already out for collection, you are generally going to find that any payment arrangements you make, settlement offers you receive, or that we can help you negotiate, will go through the debt collector that is currently collecting for AMEX.
Settling Your American Express Account with a Debt Collector
The type of settlement you can realistically aim for with AMEX credit cards can depend on several things. Your account usage leading up to missing payments is sometimes part of the equation, and so is how collectable you look to the debt collector handling the account for AMEX.
Who the debt collector is can also impact your settlement opportunities. Not all American Express debt collectors are the same. Let me break this down a bit.
The most common debt collector is a working on a contingency. If they can get you to pay something through phone calls and mail, they get to keep a percentage of what you pay. American Express accounts can settle for as low as 25 percent of today’s balance with some of the collection agencies they use, while others may not settle for under 50 or even 60 percent.
There are files that are flagged for no settlement. Some of the reasons this may happen are:
- Your account with American Express is too new.
- Recent AMEX card cash advances.
- Amount owed consists largely of balance transfer.
- The balance owed at time of default was made up of mostly recent months credit usage, or big ticket items.
Being Sued for Your AMEX Debt
There are large debt collection law firms that pick up large blocks of AMEX accounts to collect. They will call and write to you in seemingly the same way as a third party debt collector I just described. But do not let the similarity fool you. Some of these attorney networks, like Zwicker and Associates, can and do file collection lawsuits with the courts shortly after sending you their first collection letter.
Smaller local collection attorneys may contact you about your unpaid American Express card. And any collection letter you receive from an attorney with letterhead showing an address in your state, or one neighboring you, is a clear indication that your risks of being sued to get you to pay have escalated.
Smaller AMEX balances, say under four thousand dollars, are less likely to go to collection attorneys.
Settlements with attorney debt collectors for American Express accounts, whether in or out of court, tend to be at 50 percent or higher. If you appear highly collectable, and are already being sued, decent settlement percentages are harder to negotiate. If you are reading this and have recently been sued for an AMEX account, let me know where you are at in the process using one of the three options below.
We have good success helping people settle with AMEX, even when sued, for under fifty percent, and also with getting the settlement set up over many months. The extra time to pay the settlement can often be the difference in your success!
What if you cannot pay right now?
You mentioned you are not able to pay what is owed, and would hopefully be able to get a payment plan to only pay back what a prior debt collector offered as a settlement. Unfortunately, those lower balance settlement offers usually come with an expiration date. You can try to negotiate the same deal with the new debt collector, but they are not bound by that prior offer, and settlement amounts you can realistically target can change dramatically the more time you need to make monthly payments.
Remember that a debt collector is all about how you need to pay them right now. Anything you say about how tough your finances are at the moment will circle back to what you can pay today and in the near future. Every communication from collectors is for the exclusive purpose of getting money from you. That is how debt collectors are, for the most part.
You need to be concerned with your whole financial picture, and not just this one bill. No matter what the sense of urgency you feel when you are dealing with collectors, always know your cash flow, and never agree to something you are the least bit concerned you will be able to follow through with.
Unless you are dealing with an attorney debt collector licensed in your state, or have already been sued for collection, you probably do not have a debt emergency. And while I do recommend taking advantage of some of the better offers to settle your AMEX accounts with debt collectors early on, you can only do what you can. And even if you are in late stage collections with AMEX (in the courts or about to be), you still have options to navigate the situation, and even delay things.
How AMEX Will Show on Your Credit Reports
If you are only late a couple months on your AMEX payments, they will be showing one or two 30 day late pays on your credit reports. It can still make sense to do a hardship plan in this situation. But if you are more than 2 months late I am typically a fan of settling with AMEX for less, as it could actually benefit your credit more than by getting back on track.
I know… it is weird that your credit could improve years faster from settling for less, than by paying all the money back over a longer period of time. We did not make this system, but we do have to operate in it.
Late payments do not go away. And when you settle a debt for less, AMEX is not going to delete their reporting. They will update it though, and to show there is now a zero balance, once you complete the settlement. This will often mean you are taking a negative credit item and getting it to reflect a zero balance sometimes in a matter of weeks or months, instead of making monthly payments on the full balance of a negative credit reporting item for years.
American Express will not do pay for delete. Most banks will not.
Oh… and I should point out that not paying your AMEX credit cards may result in losing miles and other points in rewards programs, and those not paying their full balances back may not be able to get approved for American Express accounts in the future.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
i need to amx 130000 and they cancelled my card and gave to third party to collect. i am working with them to settle for less what they are proposing. i want to know that once we settle for amount and i pay them would i be put down as default payment. i other words would they report me to the bad credit. as i want to buy a house in future and would need a loan.
American Express would typically already appear on your credit reports for a personal account, so I assume you are talking about an AMEX business account (which usually does not appear unless you go 30, 60, 90 days late).
You should assume that your American Express business account will show as a paid collection on your credit once your settlement is complete. That would be normal. It is also still normal to get a mortgage approved with paid collections on your credit. Happens every day.
You usually find it difficult to get a mortgage with unpaid collections.
I cannot seem to get American Express to settle for less than 65% and Discover for 60%. I was able to settle Citi, Chase, and Cap One for around 35%. All account are around 150 days. Any strategies to get AmEx and Discover to 50%?
Settling with American Express accounts is typically done with outside collectors. Who you are dealing with can impact what you can save, or the way you negotiate.
Are you still having dialogue with American Express?
If you are dealing with a collection agency or law firm, who is it?
Hello,
I have an Amex account in collections with debt collection lawers modlin and slinsky. In June 2018, I had an outstanding debt of $12,000 and we came up with a payment arrangement that would last until 2021. I however, made a $4,000 payment back in May and continued to make my monthly payments. I started a new job at the beginning of the month and was unable to make a payment this month due to the fact that I had to pay rent and other bills. The lawfirm told me that I was violating the payment arrangement and could possibly take me to court. Should I be worried that they will sue me? I did miss one payment one time but since then, I have consistently made my payments. I only have about 1,600 left and paid over $10,000 over the course of the last 13 months.
They could sue, but it sounds like you could also end up paying it off and getting the suit dropped with as little you have left to pay.
If they get aggressive let me know and I can help you from there.
I have had a issue with American Ex Blue – which is for business . I do not think the signiture card is my signiture and AMX will not provide me with the signiture card .
Also the card is a business card and was taken out in my personal name not business name . It was taken out by my x-partner I believe .
I would raise this to a fraud level concern if the account was opened without your knowledge and is being used.
Below 50% with American Express is very fortunate. They are not easy to work with, congratulations on your settlement!
I have a few things in collections, and an old AMEX account is one of them. I got my account back in 2014 with a credit limit of $500. Some life stuff came up, and I stopped making payments. On my credit report, it says that AMEX still holds the debt. On my report, it says I owe them $1,000.
My Father offered to co-sign on a new credit line for me to help consolidate my debts (roughly $3,000). Is this a good idea?
Are you going to use some of the money to settle unpaid accounts? If you stopped paying in 2014 you may only have 2 years of bad credit reporting left. If AMEX is the only collection account, settling would make sense if it were me, but too many more accounts and I might just wait it out.
Hi Michael,
My situation is a business Amex Card which I have had for and used for my business transactions for 15 years. We carried the debt on that card forward from the Company afte I sold it into a sub-company of the parent which I kept. It has finally caught up with us, we are not late yet but cannot make the payments anymore which are basically all interest,, the current balance is in the 50k range (interest is accruing and most on a pay overtime amount.
Our next payment is coming due. My questions are, do I contact Amex when this month’s payment is due to let them know I can’t make the payments they are requiring now or in the near future and need to negotiate the debt way down or wait until it goes into collection? I had to pay them 10k over the past 45 days which about put us under. My business has slowed down and I am in a catch 22 where I can’t even ship my product in order to sell it and bring revenue in. The Company has no assets, of course I am the guarantor on the card, I have no assets per se they can come after. One other note, bankruptcy is not an option for me as we are an on-going business, I have had conversations with a couple of attorneys and debt relief companies, because this is a Company situation I am running into road blocks in the way of help. There has to be some way to get relief. Amex just got out of control with the large payments over the last 90 days they were requiring from us. Personally, I have never missed payments on any of my accounts and as you can imagine this one could stress the best of us out! Your thoughts?
You can click the get debt help tab in the upper right corner of any page on this site and create your user profile (secure and private), and when you get to the part where it says schedule to talk with an expert, bring up that calendar and pick the day and time you would like for me to call you to go over this.
Amex is a very different process to deal with when you cannot no longer maintain payments, or want to settle.
I have been receiving calls from a third party collector for American Express. He is quite harassing even though I’ve been making my monthly payments on my online American Express portal on an account that has been closed. He has called me at work which I have told him not to. How would I go about repaying a portion of this account debt vs the entire amount and not working with this individual?
What is the balance owed?
How much can you pull together in order to fund a one time lump sum settlement offer?
Who is the collection agency the collector works for?
About $7k due. At this point I can only pay $3k in a lump sum. The collector identifies himself as working for AMEX. When he first started calling I thought it was a scam because it’s not a list AMEX number. I also have never paid him over the phone like he demands, instead I log in to my AMEX online account and pay.
You have to be late with payments in order to settle an AMEX account for less. You may have fallen behind on a payment, and even though you are logging in monthly to make payments, AMEX is acting like you did not bring the account current.
Amex is super aggressive and can be a bit complicated to settle with. I generally recommend getting help settling AMEX debt. The professional help can pay for itself.
You can click on the get debt help tab in the upper right corner and complete a short profile and then click on talk to an expert to bring up my calendar and schedule a time to talk with me about strategies for AMEX, including bringing the account current and getting the collector off your back.
Recently received a summons from AMEX and their attorney(Modlin Slinsky. I have 20 days to respond and that is tomorrow. I spoke to their attorney last week but they were not interested in negotiating. Any suggestions on opening negotiating again? My debt occurred from Hurricane Irma and a child custody issue expenses and I’ve not been able top recover.
Hurricane Irma, How many days late were until the threat of lawsuit? What was the outcome?
My amex account went to GC Services aa few years ago, I’ve been paying them around $108 every month like clockwork and it doesnt look like im getting closer to paying my balance of $4,500 off anytime soon. I just got laid off 2 weeks ago and my husband has been out of work on disability for almost a year, neither of us can pay until one of us finds a job but when i spoke to GC on the phone this week, they said i cannot put a freeze or skip a payment amount. What are my options?
If you cannot pay, you don’t. You will want to come up with a plan to settle this at some point, and I can help you with that when the time is right (your finances are better), but right now it just is what it is.
Hi, dealing with Relin Goldstein and Crane. 4600 Amex balance last paid in December 2016. They are willing to settle for 3500 OR if i pay in full, I can qualify for the Optima program. Any idea on the affect on my credit report for paying off in full vs settling? I live in NY State and Relin is in Rochester.
Check out this video about settling debt for less vs paying in full. I cover it in more detail there, but there is no real difference to paying in full or settling for less, when it comes to credit reporting on an older collection account like this.
Hello. I’ve been reading thru the Q&A hoping to see a situation like mine regarding Amex but I didn’t really see one. So here is my question and if you don’t mind answering, I’d sincerely appreciate it. I am a single mom of 2 early 40’s with a relatively new Amex Gold card that I’ve used once and already paid off the balance and now it sits with zero balance. So I am currently having some dental issues that will most likely require full replacement. Implants and while I do have dental insurance, it’s not the best and I know I’ll have to come up with a chunk payment to pay for my dental work. I have a good full time job and receive zero child support. So my question is if i decide to use my Amex to pay for my dental work and then don’t repay the full amount the following month, what will happen?
Will I essentially, In the end, will I be sued and receive a judgement with my paychecks garnished? Or will they just continue to try and collect? Will garnishment be CERTAIN? what can I expect other than the obvious of lower credit credit score and collection calls?
I must have this dental work done and I don’t have any other liquid assets. I rent an apartment. Have an older car that I make payments on still monthly $205, I’m not even sure why they approved me for this Amex Gold card and I know I can’t afford to have it but still on the other hand am grateful that I happen to have it just for this type of emergency. Please let me know what are the most likely outcomes and certain outcomes for owing in the range of $5k, $10k, and $25k – please? I’m most concerned with garnishment. Will I be garnished!? Is it pretty much certain?
Thank you for your time and advice.
You have to be sued before garnishment or bank levy becomes a concern. That can happen with AMEX quicker than others, but assume you can drag the process of default out a year or more. Can you save up money in that time to deal with AMEX?
Amex will sometimes convert your gold card balance into a monthly payment. You can pursue that with them and still have access to future AMEX products.
There is often reason to have escalated lawsuit concerns with AMEX when your account is opened recently; has large transactions; followed by default.
Have you looked at whether your dental provider offers a credit product, like through Synchrony and their Care Credit brand? That might help you get the care you need and an affordable monthly payment without strategic default.
Thank you for responding! I super appreciate it! So actually I have a couple department store credit cards through Syncrony currently in good standing and about 5-6 years ago I had other dental work done and that was funded by Care Credit for around $5K. I tried at the time to make the payments but soon after lost a job and stopped making those payments. So I’m sure I won’t be approved for care credit again. My other thing is, so Amex isn’t like any other credit cards then in the respect that they will try to collect then just write it off? They go the full shabang themselves and just automatically sue? (After they exhaust their collection efforts?). What I mean is, for example, if I had a Kohls credit card lets say, and I stopped paying it, they would try to collect, call, and even send letters. But eventually I would never really hear from them again after the 7 year mark…but with Amex…. they will try to collect relentlessly then eventually Sue – correct?
Btw, I’m only exploring my options at the moment. I haven’t decided officially to strategically default just yet. I just recently started building back up my credit and have been doing good. But this dental issue is really a pressing issue that must be handled soon. And it is looking like this may be my only option…
I would not say that most other banks just write off the debt and go away after a time. There are many banks that pursue collection through the courts, or sell debt to buyers that will later collect through the courts.
Amex does not sell debt, and is just more likely to use the courts. Lawsuit are not automatic, but you are better off to approach these situations in anticipation of that happening.
Have you considered any of the online lenders that have reasonable offers?
I have a company called American Express Global Collections which is obviously based in a different country. I started getting suspicious and asked for a letter from American Express about settlement and it still looks weird. Are there people who try to scam you to pay that amount then take it?
What is the back story or details of your AMEX account? When did you stop paying?
Thank you! I was contacted by First source advantage. He offered 31% by feb 27 to pay off my mother’s debt. But is it a red flag that it’s not in writing and he wants the routing and account number now. He says as soon as payment electronically noted for a date prior to feb 27, he can then send a letter out that forgives the rest and that Amex will also send a letter forgiving the rest. What if they don’t send a letter? He says they must by law.
My concern is that I’m giving someone banking info over the phone. Don’t they usually send these offers by mail?
First Source regularly sends out debt settlement letters before payment info is in the computer. Try connecting with a supervisor. Tell them you are not able to get all the money from family who are all chipping in unless they see it in black and white.
You can always record the call with a smart phone app or a cassette recorder. Tell them you are recording and why (they will not send the letter our first). Keep the recording until all the documents come.
As a caution, you could call AMEX and verify they have the account out with First Source Advantage (the do a lot of collection for AMEX).
Hi Michael,
I have recently had my wage garnished from a collections company in California on AMEX account that’s been closed for over 5 years. I owed just over 20K. I am okay with the garnishment as I owe the money and due to a messy divorce I did not know about being sued in the first place. I was served by publication and didn’t know until the garnishment. My question is now I am seeing American Express is now reporting me late on my credit report and it appears the amount is going up each month. Any idea what this is about? That debt was sold a LONG time ago it appears. How would the amount be going up? Thoughts on what I should do?
AMEX does not sell debt.
The balance goes up from interest being charged under your contract or agreement with AMEX. Once a judgment is entered in the court there is judgment interest that gets added. The interest rate on judgments is based on state law, and is often capped. California caps interest on judgments at 10%.
I typically do not see credit report entries increase month by month once a judgment is entered. I am concerned that Amex is reporting an inflated amount that is not accurate. Not that it is much of a concern right now, but at some point you will have resolved the debt, and if it has not already aged off your credit, I would monitor what they report, as there appears to be something wonky with this entry already.
Michael,
I am 4 months behind on my AMEX account. A few months ago I signed up with a debt settlement company and have made several payments to them. I am behind on a number of other credit card accounts as well. I withdrew from the debt settlement program last night and am thinking of filing for bankruptcy. I have to come up with the $1700 fee first. Today I received a notice from AMEX that my account will be sent to collections in 14 days unless I call them now. After 14 days it goes to a debt collection agency AMEX will no longer work with me. Do you have any idea how long it will take before they file a lawsuit? I have a home and am a single mom to 2 young teens. I can’t have my check garnished. What do you recommend I do?
It sounds like you consulted with a bankruptcy attorney about chapter 7 first, and know that you qualify for that. How long before you can raise the money to file? If it is the next couple of months I would not be overly concerned about what AMEX does. If longer than that, post an update with who they send your account to and I can give you better feedback.
I would like to talk to you re: three AMEX credit cards that are in default.
You can fill in the talk to Michael form in the right column of the site. When I see that I email you to set up a time to connect on the phone. I can also be reached at 800-939-8357 ext 2.
Michael, I had two Amex accounts: 1 personal & 1 business. I overpayed the personal account but for some reason Amex wouldn’t transfer the balance to my business account as they had done in the past, so I stopped paying the bill until they got their act together. A few months go by and Amex closes my account, lists it as a chargeoff on my credit report & proceeds to sue me. Nearly 4 years later the lawsuit has finally ended. My case was based on principal (Amex had my money the whole time, how could they sue me for money already in their possession!), but they won based on technicality (I paid into wrong account and if Amex says they can’t mix funds then that’s their right per judge). Anyhow, being that Amex has been paid in full and made whole (they cut me a check for the overpayments to personal account and I had to deposit and cut them a check for business acct with same money), how do I force them to fix my credit report so it does not state chargeoff with serious delinquencies?
You probably will not be able to get the charge off removed. But they should update their credit reporting to show the balance is now zero.
There could now be a judgment on your credit report due to how your case turned out. It too will show as paid/satisfied.
I am being sued by American express. I had a reduction in income in Oct 2015 and could not pay my account in full each month. In Jan 2016, I got a 12 month payment plan option. June 30, 2016, my employer closed its doors suddenly. I made a payment in July 2016 but without work could not pay more.
During the same time I was diagnosed with disease and my 2 year old with autism.
I got a summons for to be in court earlier this month. My family member is helping me by making an offer on the account.
I am told that the account is not in charge off status and therefore AmEx will only accept full payment to avoid lawsuit.
Do I have any options?
You do have some options. Fill in the talk to Michael form in the right column. I will see that and email you to set up a time to talk on the phone. You can also call me at 800-939-8357 ext 2.
I just missed a second meeting with a judge(1st meeting was 12 months ago. After the 1st meeting Lawyer Collectors wouldn’t budge from 500 per month. on 20K owed to AMEX. I had offered 50$ per month. I missed the second meeting because I wasn’t notified in time to attend or find a proxy to attend so right now I don’t know what happened at the second meeting, Judges secty directed me to the court house records are kept. My monthly income, basically Social Security Retirement for my wife & me. I have been looking for work for 6 months. My age–75 may not help. The judge fined me 394$ for no show–assuming I’m irresponsible instead of asking what happened. I plan to talk to the judge and I’m looking hard for a lawyer.
Do you have assets to protect, like your home, or cash savings?
I owe American express 6000 and they sent the account to collection agency. I have called American express multiple times requesting statement but haven’t received one. I don’t want to make payment to collection agency but want to pay it American express. Is it possible to do that?
Are you trying to settle the debt for less or make monthly payments?
You typically want to deal with the collection agencies instead of dealing with AMEX directly. The outcome is usually better. Which collection agency is handling your account?
We were audited and I owe the IRS over 150,000. I’m concerned with my amex BC I owe 46k and it is a burdon. I’m not late at all but was thinking of defaulting to only have to pay a portion. If my husband is an authorized signer is he affected? The house and cars and business are in his name only. So I’m guessing Amex can’t levy or place a lien on them. Is this. Smart idea?
How quickly will you be able to come up with the settlement money you will need to resolve the AMEX account?
Call in and take your husband off as an authorized user, and preferably before you are late with payments. If you do not, his credit could be impacted.
Michael~
I’m the one left with debt of a dissolving nonprofit from which I retired almost 4 years ago.
Regarding negotiating with an Amex debt collector: what is considered the “principal” sum of the debt? Is it the amount at which I stopped making payments? The debt is constantly escalating with their penalty interest . . . I need to know how to calculate an offer of 35 – 50%.
Margot of the nonprofit debt
It was nice to speak with you yesterday Margot. That sum is the amount owed today with all interest and penalties added in.
Yipes! The Amex debt is growing at penalty interest of 28%. And you are still advising I wait until April or when a collection firm contacts me?
The trouble is that you often have to wait until an account goes unpaid a certain amount of time before you can target the best settlement outcome. If you have an early offer, and though you think you might get a 10 or so percent better deal in 2 months, you can calculate the balance accretion and find it is a wash between paying the deal now, or waiting it out.
There is also the issue of AMEX being more aggressive with collection much earlier than virtually all other banks. And this can lend to the reasoning of settling earlier too.
Michael ~
Zwicker & Associates has begun to call associates and my husband. I have a friend attorney who has been in collections who says they are now seeking and address to send a demand letter. He says he will respond disputing the validity of the debt in case they cannot produce the agreement I signed 12 years ago. He says that may slow down the process.
My attorney friend says if I am served to get it to him immediately so we can get an answer filed and start negotiations.
Is this the best way to handle Zwicker and Amex?
Bless you for your advocacy!
You can also look to settle with Zwicker before the suit is filed. You can often get the same outcome either way.
My husband who is disabled and recieves only as disability is being sued by amex. We were sued in a county we didn’t live in….we filed an answer but was never given any further information regarding the suit. We were just served by a county sheriff (once again in a wrong county) and the paper work has no signatures or any other proof of service. To add to this the lawsuit apparently was filed 2 months ago and the attached extra summons was just filed . This is a law firm out of Arkansas. Do I file the same answer as before?? I guess I should mention that this is a now 4 year old debt. It is a debt we cannot afford to pay or we would had. Paperwork in the past have had inconsistencies and looks like something they send out in status quo. My answer before separated his debt from me. Addressed the income as disability payments (which to my understanding they cannot touch because of it) and I guess they are hoping we screw up but haven’t they screwed up because of the issues of improper service? I don’t know how they can sue in all the improper counties (we have a courthouse in our county) Plus we have no resolution or proof thereof from the other suit. Please help!!!
I would contact an experienced debt collection defense attorney in your state and talk to him/her about the suits being filed in the wrong county when they obviously have your address to serve you. There may be something actionable there. What is the name of the collection law firm suing you?
Are you in Arkansas? Would you like me to email you a list of attorneys with the experience you need?
Michael I need help. I am the founder of an 18 year old nonprofit. I took out the Amex card in 2007 to Use as a payme vehicle. We always paid it off monthly. In 2013 we hired an Executive Director and I was fired 9 months later – after adding her as an authorized user. In June of 2014 during a meditation settlement with the nonprofit the Board Chair acknowledged the responsibility for the Amex bill (now over $22K and in penalty interest), stopped charging on it, and paid minimum payments.
Now the nonprofit is dissolving and leaving $16K in Amex to me.
What can I do??????
If you are on the hook due to the personal guarantee you may end up having to settle this account before AMEX sues you. Suing the nonprofit that is broke and dissolving would not appear to be a good use of resources.
Can you raise the money to settle with American Express? Are you willing to make monthly payments? Are there any assets of the nonprofit you can try to get creative with them on?
Hello Michael,
We received a summons for just under $25k for an AMEX account that does not belong to us, we ran our credit reports for both myself and my son (we both share same name) and this debt does not appear on either report. How do we go about contacting either AMEX, or the attorneys or the court? We are obviously very concerned as the document said that they have tried sending letters however we never knew about this until the server showed up.
If the account is not yours in anyway I would contact the attorney for AMEX and see what they want to do about it. But there are enough examples of collection attorneys being non responsive to logic, that I would prepare to file a debt collection complaint against the law firm with the CFPB; speak with an experienced debt collection defense attorney in your state; or even file an answer with the court that it is not your account.
Hey Michael,
Thanks for the content here…been a crazy year recovering from a big business dip in Q3 and Q4 2015 and then prepping for birth of our baby. Made payment to Amex end of April 2016 and haven’t paid since.
I think they’ve sued me (or are getting ready to) but haven’t been served with anything.
I only found out that it was at this point because I started getting legal advertisements saying I was “sued” on Dec 20th 2016. Far as I can tell they’re legit though it isn’t in the county records yet.
Is there a way for me to find out who has my debt? I haven’t figured out who’s been contacting me from their side to start a settlement and kinda found myself at the “end stage” of courts without realizing it.
I have some funds to potentially get a settlement done if I know who and how and what to contact to get something done with American Express.
Any suggestions or resources to find out where it’s at and get a settlement negotiation started?
American Express does not sell debt. You can call them and find out what collection law firm they sent your account to for collection. You can also look up your name in your court and find out what firm has your account and filed the suit. You can then call to negotiate the account. How quickly can you come up with half or more of the balance?
My mentally ill son used my American Express card fraudulently. It happened three separate times in the last few months. Each time I called AmEx. So they cancelled the card and sent a new one. And then sent me a letter that they didn’t consider it fraud. The third time I received a bill for $2400 I told them not to send me another card. And I received another letter disavowing my claim. Then November 21 I received a call from the fraud department wanting to know how I was going to pay the bill because the charges were now up to &4100.00. I was floored. It seems that most of the charges were done on line
I am a 77 year old widow who is trying to survive on social security and meager savings. I won’t press charges against my son because he is also gay and it would be a death warrant for him. He has done this during a major depression episode and takes five different medications. Do I have to pay this? My son has filed for disability, but in Florida where we live that wheel turns very slowly.
I would connect with an experienced debt collection defense attorney in Florida and learn what their experiences have been in similar situations. I can email you a list of those I know with the experience you need if you like?
Could you email a list of experienced debt collection attorneys to me in Palm Beach County, FL
AMEX offered an unrealistic pay back plan. We had three credit cards with AMEX including a business card.
I should add, Just to make things a little stranger. American express did request the police get in touch with me to ensure i was safe and alive. I only know this because the industry that i worked within had me working with a handful of police officers in a technical capacity.
So between that and 1 letter in the mail saying your payment is overdue not a peep from them.
I’m going to use some round figuers for some privacy….
Dec 2009 I owed between 60 and 65k on a amex black which is a charge card and 55 and 60k on a platinum credit card.
This was in Queensland, Short story was none of it was pre-meditated or intentional. I have never had anything more then 1 letter in the mail from them saying my account was past due. Alot has happened since then and i thought the statute of limitation was 8 years in QLD however it seems it is 6 years.
I do find it interesting that i never proved anything to american express other then my ability to pay my card off every month without fail sometimes with balances as high as 5m
Funny enough I can still log into my amex portal and see both cards there with the debt, however no interest has accrued in the 7 years.
I have never had any contact through the courts and to re-iterate I have never had anything more then a letter in the mail from amex.
Strange Right…..
For the past month I have been trying to get my credit report from My Veda to no avail.
What would your thoughts on this situation be?
All that I can imagine are that amex at the time did its homework, they did credit checks on myself on 3 continents, realized that suing my would reap them nothing, and bankrupting me would only loose me as a customer for life. I got my black amex when i was under 25 through my own business with everything above board and legitimate.
All that I can imagine is that they hope that one day I will contact them to repay the debt and go on being a customer of theres. To be honest i dont think in the grand scheme of things they lost anything, I would have charged approx 15m over 5 years and at 2.8% merchant fee that is $420,000
It is a bit odd to have not heard more from American Express, or any of the debt collection firms they use.
Unfortunately, I am not able to comment on collections and credit reporting concerns outside of North America in a meaningful way.
Hi Michael,
Thank you for this site. I got an offer from family to help me get back on my feet and settle my debt. I owe American Express 6800. I just called Amex and they said they could settle with me today for 3000, or I could pay in full and have a prequalified optima card and maintain my relationship with America express. Obviously the first option is the most attractive, but which one is better for recovering my credit and building a more solid financial future?
When did you stop making your minimum payments to AMEX? The longer it has been, the less meaning there is to paying in full compared to settling for less.
If you are more than 90 days late with American Express, and certainly more than 6 months late, there is next to zero return for paying in full as it would relate to your credit scores bouncing back.
i have a balance of 1734 due by dec 27th on AMEX i have scheduled paymetns made for the next month and im also on the financial hardship plan? Can I still be sued?
If you have an agreement in place, and keep your side of it, it is highly unlikely you will be sued.
About what balance amount ends up with a collection lawyer versus a balance ending up with a collection agency? I owe $5400.
The balance size may not have anything to do with it. I see balances half or less that amount with AMEX end up in court.
Hi Mike I owe 6000 to American espress is being 5 months without paying them ,5 months ago I contac nationalwiide debt direct and they told me they will be able to help
Me to pay them less,,a collection company is calling now , Ican i trust nationalwide??their plan is for 20 months with them ,,can American Express send me to jail ,do not know what to do,,I’m going crazy thinking should I answer the collection company and make a deal with them!!please help me
You cannot go to jail for an unpaid credit card debt in America.
Can you pull together half that AMEX balance? How soon can you have the money?
Hi Michael. My father is in a nursing home with dementia and end stage Parkinson’s. Up until he went in the nursing home he was paying his AMEX bill. Now the nursing home gets his social security check. Now, he has a Notice to Appear from an attorney debt collector. I am his POA so I will go to court for him but what are the chances of the judge making him pay this? He has no money.
There is a good chance the lawsuit will end with a judgment against him. But if he has no assets, and no other income than social security, there is a zero percent chance the judge, or anyone else, will be able to force him to pay. Check out that link for more.
Thank you.
Hi Michael,
My Friend recently left the USA with an Amex liability of roughly $3500 and returned back to the UK because he was unable to continue with his work visa and financially was unable to pay it off before leaving. Will Amex transfer that liability or collect from him abroad in the UK, or is likely nothing to come of it, if he no longer wishes to return to the states.
I typically do not see debt based in the United States track people to other countries. You can still settle with collectors while not in the country. But lawsuits, while technically possible, are not probable.
I have an AMEX account that got sent to FirstSource. I owe 1300 on the account. Im paying very little every month, but still paying so the situation doesnt escalate. In terms of credit score impact, does it matter if I pay in full or is the outcome the same if I reach an agreement to pay partial? Aside from having too many credit inquiries, this is the only other problem I can see on my credit report. I am planning to apply for another auto loan soon, and Im not sure how the AMEX card payment choice will affect the loan chances. Also, is there a way after paying off the card to get the deragatory mark taken off? Thank you!
You cannot typically do a pay for delete with AMEX.
How many months ago did you last make a regular minimum payment to AMEX?
How long has First Source had your AMEX account (when did they first call or write to you)?
For many of us, there is next to no difference to our credit scores if we pay a collection account in full or for less than the balance owed. The end result of either option will be a zero balance reporting to the credit bureaus. And it is the zero balance you want.
I stopped paying my American Express bill about five months ago. I am disabled,and have 0 income. American Express is still sending me bills directly, but a few weeks ago I also received a letter from a law firm in my state, saying that they now had my account for collection. It was not a summons, it simply said “we have this case now.”
My question: how long does a person typically have with AmEx from the time the account is turned over to a debt attorney to the time they file a lawsuit? I’m trying to set the wheels in motion to file bankruptcy to stop all of this in its tracks but with my illness and constant medical appointments I need time to figure it out. There is no way I will be able to pay them anything.
Should I write to the AmEx lawyer and ask them what their intentions are? How long will they typically give me?
It can be a matter of weeks before you are sued. Writing to the AMEX attorney will not delay anything more than a month (by requesting validation that they will respond to quickly), and maybe not that long.
Try to connect with an experienced chapter 7 bankruptcy attorney and retain her/him. Once the attorney contacts AMEX and their attorney, it can often slow things down the way you want, though they may still file if they are not getting the creditor notice that you have filed your petition with the court.
Michael,
We have a very serious debt with AMEX, and a VERY immed need to sell a piece of real estate and we are nervous AMEX will show up at the title and I will need to pay it. We have hired two lawyer to go after AMEX but have gotten NO Return [phone calls after 9 months
what do you suggest we do? Its a alrge amount of $ already and we really need to settle this
Fill out the talk to Michael form in the right column of this page Evan. When I see that I will email you to set up a time to connect on the phone. There are a good amount of details I will want to get from you.
I’m on permanent disability I have stage four cancer and I have $25,000 in Amex debt I just got notice that they are suing me. Does the court take this ability into account?
The court is typically not going to take your ability to pay into consideration at this stage of a lawsuit. The court is there initially to determine a liability. You either owe American Express or you don’t. If it is determined that you do, and a judgment is entered, that is when your inability to pay, and personal hardships can be tested to meet your state exemptions from collection.
In other words, you may not be able to work. Your disability income is protected, but your property (like a home) may not be. Check out this article about collection exemptions.
Hello Michael,
I had worked for a company that issued corporate AMEX cards. They list my name / then my company name. The settlement has always been done by my company though I was copied on paper statements which I never looked at. I ceased working for them as of 7/1 this year. Evidently despite me changing over some of my recurring office expenses to a new card; Verizon continued to charge for 2 months leaving me a small $200 balance. I never knew / realized a balance existed because anything addressed to my old employer my wife and I toss in the trash.
Well here I am 4 months out from the last charge and received a phone call from “Central Credit Services” saying my account was in collections. I told them I dispute it and to mark the file as such while I sort out the details.
I don’t mind paying the full $200 of course; I just want to ensure this does not mark my credit.
What is my best recourse? I tried calling AMEX to explain but got a run around.
Thanks for your help!
Is it already showing as a collection on your credit reports? If so, there is often little you can do to get AMEX to remove it. But that is not really a big deal if this is the only collection on your credit, and you are not trying to finance anything for the next 6 months to a year.
Hello again!
I asked if nationwide would write a letter to reflect our settlement agreement. The manager said it wasn’t possible for a few days and then talked to someone and said that I could pay part of the settlement ($239 out of about $1300) and then the next day I would get the letter. Is it essential to have the letter of agreement absolving you from further responsibility before paying the settlement? Is a verbal agreement enough?
Thank you!
I find it necessary to have the agreement in writing first before paying. As an alternative you could record the conversation using one of the free apps available. The when the letter gets to you, you can delete the recording.
Nationwide regularly documents AMEX settlements prior to receiving payment. You are dealing with a debt collector trying to lock in your money is likely all that is happening here.
Hello! I am in collections for my Amex and negotiating with the collection company, Nationwide Credit.
They have reduced the amount to 40 cents on the dollar, wick is $1000, but I don’t have that full amount and am hoping that they will go down a bit. It’s only a difference of about $300 but I take care of my parents and it makes me uncomfortable with my ability to keep everything in order to pay $1300. I am hoping not to go into a payment plan for any amount as things get really busy and I would likely default. Is there any way to get a lower settlement? Can I call Amex directly? Thank you?
Sorry– $.40 on the dollar is about $1300. I am comfortable paying $1000.
I do see some settlements better than 40% in some situations. They are not common though.
You cannot call AMEX to resolve the debt when they have it out with an agency collecting. They will just tell you to call Nationwide.
Can you accept the settlement confidently if you split the payments into 2 or 3 months?
Thank you so much for your guidance! Nationwide had told me that the account would go back to AMEX on a certain date, but weeks later they were still calling me. Then, I started getting calls from Amex directly.
I told Amex my situation (that I had, for decades, been on time with payments and then 3 years ago my parents and sibling all got Ill simultaneously. I fell behind in everything, and it’s been non stop caregiving.)
I had two Amex cards that were closed, one which had been for the small non-profit organization that I had run.
Amex settled both for 30 cents on the dollar, which was better than Nationwide.
I have to say that representatives from both Amex and Nationwide were kind and understanding. I felt more comfortable dealing with Amex, though.
Unfortunately, I lost all of my Membership Rewards points. With my family’s illnesses, I couldn’t do anything but care for them. I never transferred them to an airline’s frequent flyer program. I was going to do an around-the-world trip with them and it hurts to have lost them. I am still caregiving, and lost the ability to go on vacation any time soon.
I share all this to say–if you have Membership Rewards be sure to transfer them to your airline of choice or use them. Don’t leave them in the MR account!
Peace and joy to all.
Congratulations on the settlements!
I know what you are saying on the rewards. It happens with most creditors when you default and cannot get back on track.
I live in Southern California. I received a summons from american express for an upaid debit yesterday. I intend to try to negotiage the debt down ($40,000) but in the event that does not happen they will proceed with a personal lawsuit. I have only received a summons at this time. I want to avoid any future lein placed on my property in the event they sue me. Would a quick claim deed (done yesterday so technically before the lawsuit ) to my husband protect this from happening? We both are on the title now and we both reside in the house.
Not necessarily. The day you were served is not the day the lawsuit was filed. You will want to consult with an experienced debt collection defense attorney about the look back period for that type of transaction.
If your goal is to settle with AMEX, how long until you can pull together 20k or a more?
I have every intention of settling this before the personal lawsuit moves forward. I have about $5000 to give immediately but $20,000 is out of the question in one lump sum. I am more than willing to make monthly payments but have no idea what hey will be asking for. Do they typically ask for 50% up front? and what if I don’t have it? Will they take less and let me make montly payments?
It can vary. Watch this video interview with the debt collection defense attorney in California that I regularly refer people to. Call him for a free consult.
My American Express credit card was abruptly cancelled without reason in January 2016. My balance was 1100.00.
In March I missed a payment due to my family having to evacuate from Houston and relocate to Fort Worth Texas due to flooding and loss of employment..
I planned to pay March bill but later in the month due to present circumstances at the time.
Before I could pay my bill GC services contacted me and advised that my account was turned over to them and to pay them instead of American Express going forward.
They said I needed to pay 72.00 a month so I set up automatic payments. I also updated my new Fort Worth address with them and I thought everything was fine as
I paid the 72..00 per month on time as agreed. I never heard from American Express again and I thought it was normal being that my account was closed and transferred to gc services.
As months went by it was time to find a permanent home for my family.
I was denied a home loan due to low credit score and poor payment history. I thought it was a mistake as I have always Maintained a good score and never missed payments.
While reviewing my report i saw that AE reported me 30 days late 4 times from May to August.
As a result my other credit cards lowered my limits significantly and my credit score dropped by almost 200 points.
I called gc services and they advised that they would file a complaint because I never paid late and that my 72..00 a month was a agreement with them and AE.
I called AE and they advised that even though I was paying gc services the 72 wasn’t enough to cover my minimum due to late charges added and left over amount from March balance.
I was completely unaware and had absolutely no idea I owed more that the 72 a month I was asked to pay.
AE said they sent statements but I never received any of them. They were mailed to my previous Houston address. I never received phone calls, emails , texts etc alerting me of any issues.
AE said I should have updated my address with them but why would I update my address with a company that is no longer handling my account? GC services had my new info so I thought all was good.
I called AE literally in tears pleading for them to re-age and remove the negative reporting.
AE said because they no longer own the account they are unable to make any changes to my acct.
I was told to call gc services for help, however gc services said that there was nothing they could do as they do not report to the credit bureaus.
I desperately need help. AE has ruined my credit and my temporary apt lease is up next month. I can’t get approved for anything and I desperately need permanent housing for my family of six.
I thought I was doing the right thing by paying the 72.00 I was asked to pay., but it backfired on me in the worst way possible leaving me with a 520 credit rating and zero chance for home approval.
Is there anything I can do?
The employee at American Express likely lied to you. AMEX does not sell debt. They are the ones reporting a balance still due, so it is obvious they still own it for that reason too.
You could at least think about filing a debt collection and/or credit reporting complaint against AMEX with the CFPB. I do not see it changing your situation based on what you have shared, and the way I know AMEX. But I have been surprised in the past.
You will want to review my article about renting with bad credit.
Hi Michael,
Thank you so much for posting this as it answered some of my questions. Although I have some more.
I received a summons from American Express that they are going to sue me personally for the $40,000 I owe them. I am 4 months defaulted right now and my business is in debt. The summons came from a local lawyer so I believe I am now dealing with attorney debt collector.
I have my accountant responding to the summons. He has done this in the past but never with American Express. I have some questions:
1. Does the attorney now handling the case for Amex hold the power in the negotiations? Meaning does he make the final decision when/if a settlement is made or does Amex still hold that power?
2. What if I cannot pay the minimum Amex wants in the settlement? Does the attorney then move forward with the personal lawsuit? If so, my business in incorporated, do I have any protection because of that or does it not matter being that it’s considered a personal lawsuit?
3. If an agreement is settled upon, will the amount have to be paid in one lump sum or will I be able to make payments?
4. If my business files bankruptcy, am I protected at all from this lawsuit? Again, not sure being that it’s a personal lawsuit according to the summons.
5. Being that Amex does not sell to outside collectors, does this mean this will not affect my credit score?
The attorney holds the power (for the most part).
If you cannot pay the settlement amount, and the case ends in AMEX getting a judgment against you, your personal accounts and property are typically at risk.
We do settlements in your situation that can still result in a settlement with monthly payments.
If you were named personally in the lawsuit, which is normal for AMEX to do when they sue, your business filing for bankruptcy does not protect you in any way.
This is likely already affecting your personal credit now that you stopped paying. Pull your credit and let me know what you see.
Thank you for your reply and everything you have done for people on your site. I have learned more form reading this and your responses to others on this chain than I have from all the free consulations I’ve had. So again, thank you!
I’m going to do everything in my power to settle this and not have Amex proceed with a suit against me. I don’t want my husband affected in any way as this is really my small business debt, despite the personal suit, and it sounds like if an agreement is not met he will be exposed.
I have my accountant working with the lawyer on my behalf (apparently he has done this many times for his clients and I know him well) What should I be prepared to pay up front with a 40,000 debt? We are only at the stage where a summons has been issued so is there any key things I can pass along to him in the negotiations that might make a difference, perhaps if they think I’m ready to file personal bankruptcy?
I can read our comment exchange to mean you have been served the lawsuit from AMEX, and also that you have not. Can you post a reply about whether you have been served already? Also include whether you can pay a 20k settlement in a lump sum or not. If you don’t have that cash right now, could you raise it in 6 to 9 months?
Hi, we have been paying our Amex monthly to a third party (GC Services who is now AllTran Financial) for many years. Our balance was $17,000 when it was placed with the agency back in 2010. We are down to about $7,000 but it has been painstaking. Is there any way to settle this debt or get the interest rate reduced to tray and pay this off sooner than the remaining 24 months?
The debt collection agency you mention used to be called United Recovery Services now collects under the name Alltran.
GC Services is a different company all together.
You can sometimes still settle in these situations, but as will all things AMEX, it is a bit nuanced. Fill in the talk to Michael form in the right column. When I see that I will email you to set up a time to talk on the phone.
I am being sued for $21000 on an Amex account. The plaintiff is Centurion bank and it doesnt appear it is being handled by an outside firm or collector. I stopped being able to make payments about 5 months ago due to overextending myself on a new business that got a slow start. Today I filed an answer to the summons as with a general denial. There is a court date set for a month from now. Would it be wise to contact them and try to work out some sort of settlement? I wont have 5 or 10K up front but maybe a couple of thousand to start.
Negotiating your American Express collection account at this stage can often require some strategic planning. Fill in the talk to Michael form in the right column. I will email you to set up a phone consult to go over the situation in more detail.
Additional information regarding my account with AMEX. It has been over 6 months since I have made a payment until this month when I made a $100 payment while trying to reach a settlement. I’m not working due to health reasons and don’t anticipate that to change anytime soon. The law firm representing AMEX is Vinci Law firm in Denver, Co. My card balance is $12,855.
Can you realistically expect to raise roughly half the balance they are suing for in, say 6 months? You can often stall this out in the courts and buy that kind of time.
If your only hope of resolving this is monthly payments, it just is what it is, but I do not encourage you to agree to something you know you will fail with in coming months.
Is this the only unsecured debt you have? Have you looked at chapter 7 bankruptcy?
I’m trying to refinance our house but that is hard to do with bad credit. Also may be able to take out retirement funds to pay half within six months. I do have several other credit cards I owe on as well. I’ve checked into bankruptcy but was told our payments would still be $1200 per month. What will happen if this goes to court?
The home refinance likely has no shot until you no longer have unpaid collection accounts on your credit reports. If you have not been sued yet, it would be great to find a way to pay for a 50%-ish settlement with the attorney for American Express. If you are sued you may want to defend the case in order to set yourself up for success with a settlement a few months later.
If you were going to make a monthly payment in bankruptcy than you are talking about a chapter 13, and not a chapter 7. Were you told why you could not qualify for a chapter 7?
We have a lot of equity in our house so don’t want to give that up. That’s why chapter 7 is not an option. Do I need a lawyer to go to court as I really can’t afford one right now? What should I tell the court?
he homestead exemption in Colorado is 60k, and up to 90k if you meet certain elder or disability protections. There are other assets you cannot keep in a chapter 7 too.
It is best to have a lawyer assist you in defending a lawsuit if you need to buy maximum time to raise the money to settle.
Not sure why we couldn’t do chapter 7. Could it be that we have other assets like guns? Going to get another consultation regarding that.
Good idea. I would talk to several resources.
I have made but not signed an agreement with an AMEX law firm. However, it starts with low payments and then increases in a few months to payments I anticipate I will not be able to afford. I am currently unemployed. I also have a court date with AMEX set for December 3rd. I offered to make lower payments and this is their second counter offer which is still more than I can afford. What are my options?
Thank you!