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
Short answer
In most cases, yes. American Express handles little of its own collection work, so once your account is placed with a debt collector or a collection law firm, any payment arrangement or settlement goes through that collector rather than through Amex.
Key points on this page
- Amex does not bundle up unpaid credit card accounts and sell them to debt buyers as a general practice, so Amex remains the legal owner of the debt.
- Amex has no internal recovery and collection department to speak of. Once the account is behind enough to enter the collection pipeline, you are routed to third party collectors.
- Under about 90 days late, Amex may bring you current or put you on a temporary hardship plan with a lower interest rate for several months, sometimes up to a year. Avoid that plan if the setback is not temporary, because the payment goes back up at the end.
- With contingency collection agencies, Amex accounts can settle as low as 25 percent of the current balance, while other agencies will not go below 50 or 60 percent. Some files are flagged for no settlement, usually where the account is new or the balance is mostly recent usage, cash advances, balance transfers or big ticket items.
- Attorney collectors, such as Zwicker and Associates, can file a collection lawsuit shortly after their first letter. Settlements at that stage tend to be 50 percent or higher. Balances under about four thousand dollars are less likely to go to a collection attorney.
- Amex will not delete its credit reporting and does not do pay for delete, but it does update the entry to a zero balance once the settlement is complete.
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 owe AMEX ~$4000 and it has been written off and gone to collections. I am in a position to pay the debt in full at this time and want to negotiate the removal of the negative information on my credit report. Is this probable and if so how should I approach this. I have had no communication with AMEX.
I would say you have no chance of a pay for delete with AMEX. You can pay or settle your AMEX account for less and have that fact updated to show a zero balance and a paid collection on your credit reports. That is what you need at this point.
Are there any other unresolved collections on your credit besides AMEX?
Michael,
i have recently paid off two debts to ARSI (amex ca agency) and they were both for different cards. I paid these debts entirely in full. They acknowledge full balances of both cards are cleared. My question is: will I be liable for any 1099-c interest for these two card balances, or NOT since I paid them in full and didn’t settle at all?
Thanks
The taxable event when settling debt is when there is $600 or more forgiven or canceled in the process. If you do not meet that description I cannot see how you would be taxed.
Did you get the agreements to pay the accounts from ARSI in writing? Did AMEX or ARSI send you any correspondence after you paid them?
Yes, so what happened was I paid them off and then they sent me a correspondence (from Amex) stating that upon successful payment they would be sending me an application of Amex optima which I did receive and then send back, but as I mean the only confirmation I have is speaking to the agencies and agreeing to pay. Then calling Amex DIRECTLY and confirming both accounts were zero’d
Sounds like you are good to go. I would check your credit reports and make sure your AMEX accounts have been updated to reflect their paid status. Let me know if you find anything that should not be there now that you paid ARSI.
Great,
will check my report, is there a “best” way to check your report ongoingly. I already used my free annual credit report and unfortunately, I read over all 3 instead of just reading one and using the others every 4 months. Which I guess could be a reminder to your readers, if you approve of that, I’ve heard its best to just read one of the 3, then space out the others so that you can get a free report every 4 months.
That said, do you recommend any BEST pay site or paid tool to check on it, I feel like credit karma is crap and doesnt give you a full legitimate report 🙁
I am a big fan of checking a free one from the bureaus every 4 months through http://www.annualcreditreport.com and cover that on many of the credit reporting related pages.
I like the credit report card available over at http://www.credit.com as a free credit checking tool once a month.
As far as paid services to check your credit, there are many to like, especially the ones available direct from the bureaus. But the only time I would pay is if I was rebuilding credit for a known financing purpose in the near future.
I had two American Express accounts one with a small credit line and balance and the other with a large credit line and balance when I lost my job. I now have a new job and just settled for the smaller card 50%. I don’t have sufficient income to pay as much as they would like on the large balance and it has gone unpaid for a year. The attorney took me to court but dropped the case temporarily when I asked the judge for time to meet with counsel and went to an attorney who told me I was a good candidate for bankruptcy. Now that I have a job, they are pulling me back into court next week moving ex parte for removal of the case from dismissal list.
I want to set up payments but don’t think I can afford what they want plus would like to avoid paying attorney fees. Attorneys scare me. I would prefer to work with a more collaborative agency like the agency that worked for American Express that helped me make payments I could afford for a year and then recently settle on the smaller American Express balance . Any chance I can get American Express to transfer this to that agency or another agency or am I stuck with the attorney.
If I am stuck, should I call the attorney and try to set up payments before going to court which is scheduled in 15 days? I don’t want to have my paycheck garnished because it will likely drive me into bankruptcy and it seems like it will be very embarrassing at work.
Please advise so I can take smart action quickly.
You will typically be stuck with the attorney for AMEX in your current situation.
What is the balance owed currently? How long would it take you to raise half of that?
Hi Michael .. I just got a call from Jaffe and Asher, in NY where I live .. they are trying to collect a debt from AMEX for about 6K which I absolutely do not have and they said that they are going to proceed to sue me if I don’t pay them. I explained to them that I live hand to mouth at $15 an hour and that paying them any more than $50 a month would compromise my basic needs, but that I would be very willing to do that if they would accept it .. he said he would take it but couldn’t guarantee that they wouldn’t still sue me. I’m thinking about filing bankruptcy .. is that something people do in this situation ? I was unemployed for a couple of years and basically just have nothing to give them. I really want to avoid some horrible legal problem and would rather just wipe the slate clean. what are your thoughts on this, is it even possible at this point ? thank you so much for your informative website !!
Filing bankruptcy, especially chapter 7 where you discharge credit card debts, is very common. It does not matter what stage of collection you are at with your American Express account, filing would stop Jaffe and Asher collection activity.
There are costs to filing chapter 7. You will have to work that into your planning. You should connect with an attorney in your area for a consult, but read my article about finding the right attorney before you do.
Are there other credit card bills and unsecured debts besides the AMEX account (whether in collections or current)?
Hi .. Thank you so much for your prompt reply !! I have just a little more cc debt at 1k from a different cc but my main issue is old student debt that I owe for about 30k … But I don’t think the. Chapter 7 would do anything for that ? What are the downsides to filing chapter 7 ? Thanks so much !!!
It is difficult to discharge student loans in bankruptcy. Are those loans federal or private?
Depending on your situation, there are not many downsides to chapter 7. If assets are sold that are not exempt, settling American Express debt can be a better alternative.
Read over this comparison of credit impacts from bankruptcy and other debt relief options.
Hi Michael, I have reached an agreement with jaffe and asher for 60% of what i originally owed. They want me to pay 1k today and the rest by the end of the month. Do I need a written letter agreement or an email from them is ok?
Jaffe and Asher collects on many AMEX accounts. They should readily be able to provide you with a written outline of your agreement. If it comes in the form of an email, I would still want the email to have a pdf attachment of the settlement letter.
Let me know if they balk at sending you anything in writing.
Thanks for the reply Michael, yes they emailed me 2 pdf’s 1 is the agreement and the other one is the wire transfer instruction. Could I trust this email or should I ask for a written letter?
It sounds like the letter you received attached to the email is exactly what they would mail to you. That is normal and what I accept often.
You can compare the letter Jaffe and Asher sent about settling with AMEX to the items I list in my article about what to look for in a settlement agreement.
Just reached a settlement with AMEX settling a balance of $6,300 for $3150 ($400 of that is attorney fees since this went into lawsuit).
I don’t know if thats a good deal but they accepted it very quick, I should’ve went for a lower offer but I guess its too late now.
I’m insisting on including in the settlement that the creditor, in exchange for the settlement, remove any derogatory marks regarding the account and change the account status to “satisfied in full” or “paid” status with all 3 credit reporting agencies Transunion, Equifax, and Experian immediately upon settlement.
Michael, would you recommend I ask for that? Also anything else I should ask for before I sign and pay?
50% settlements with AMEX on litigation files is often as good as it gets. Who was the collection law firm you dealt with?
Debt collectors for American Express, whether a run of the mill collection agency or a law firm, will have zero ability to impact how AMEX reports your account to the credit bureaus. Making that part of your request is not a good idea since it will fail. I would not do it.
AMEX will show the debt as paid or settled and a zero balance owed the way they normally do. The way they do it is actually just what you need to happen, so I would not get hung up on it for a second.
You do want to be sure any unresolved action in the court is dismissed as a result of this agreement.
It was Michael and Associates.
Why do you think they accepted the offer so fast? It seemed like it was lightning fast, literally the next business day. Didn’t seem like it was a difficult decision at all.
The goal is usually to resolve accounts. It is not surprising that the settlement went through that quickly. It is the end of the month after all. Debt collectors have goals to meet to…. Congratulations are in order!
I have 3 accounts with AMEX all charged off and one paid in full and good standing. Based on some of what I’ve read and what you’re saying is that AMEX won’t give me a deletion but only a paid status. Will those 3 delinquent accounts reflect poorly as I try to rebuild my credit score before the 7 years knocks them out of the report?
How quickly credit will bounce back with vary from one person to the next. I would recommend you read my article about a former customer and her experience with her credit score bouncing back after settling her debts.
The more your situation resembles Nichole’s, where she had equal or more positive accounts, than resolved collection accounts, the faster your credit will bounce back.
Credit scores are primarily there to serve as a utility function for our personal financing goals. Resolved collection accounts with AMEX that will be showing on your credit reports may not hold you back from goals even in the short term.
What financing goals do you have for when your debts are all resolved?
Thanks Michael, will definitely take a look at the article right after this.
My goals are auto lease, maybe business loan, and eventually home loan down the road so I figure it would be a good idea to begin preparing.
I just listened to your voice message from last night CK. You can send an email to me at the same address you get these comment notifications from. Those all come to me.
Thanks Michael for that advice, I did not get any email notifications from this website and I don’t see any features to activate notifications. I’d like to show you the settlement offer first if thats ok.
You can send any email to info at consumerrecoverynetwork.com
I got your email CK. The letter from Michael and Associates PC outlining your settlement on the AMEX account with them would be good enough for me if it were my account being settled.
I have one other credit card also with amex that is 2500 that i’m going to pay, for whatever reason it is with a different collector (central credit services) i have paid them 330/month lately but I will pay them a lump sum to cover it before the end of this month.
People have been discussing this OPTIMA card, and the CA did offer me it at the beginning of my starting to pay them off, is that an option to get when i cover these balances i owe, in full.
I have not looked into the Optima card much. Were you quoted an interest rate?
No i was not, only that I would receive a 1900 limit which equates to about half of what i had on my card that i’m paying off in exchange for getting the card. Ive done extensive research and it is american express’s “burying the hatchet” card with you. They agree to start over with you with this card.
If you like AMEX products (it sounds like you do), and the interest rate is competitive, I see no problem with it.
It would be great if you posted about the approval and interest rate on the Optima card once you get it. That information could help future readers.
I have a letter from CCC with info about the Optima Card. The Pricing and Terms are a $9 Annual Fee and the Interest is the Prime Rate + 14.99% (+25.99 if you earn the penalty APR).
The reason I am here is I am able to pay my AmEx debt off, but I was trying to verify that CCC was a legit operation. It looks like they are. Not sure if I’m willing to take the Optima Card with those rates though. I might just pass on that.
I had a judgement back in March of 2009 with AE for 20k for debt incurred in 2006.. I have been self employed working on commission only the last 14 years so there was never any payment plan set up, deduction of accounts, etc. I had and still have no assets. I just received a letter from Central Credit Services. that they have been requested to assist them in the collection. I know this sounds bad but I am will not respond to them.. Is there a time limit that they can collect on? I am sure I have received these letters through the years. Just curious of how long AE pushes their collections. I live in FL.
Judgment debts can be renewed in many states. Your AMEX judgment in Florida can be renewed every 7 years. It is often better to resolve a debt like this than have to continue to look over your shoulder forever.
If you need help putting a plan of action together send an email reply to me using the address you get these comment notifications from, or you can call me at 800-939-8357, choose option 2.
I have similar situation, have judgment since 2011. Recently I contacted Amex, they referred me to Central Credit Services that offered to settle for around 35%. I’m getting help to pay that to start a new beginning. They accepted to send a letter after my payment to state this is settled for less than agreed and I will not owe them any more money. Do you think it’s wise to send the money and if I have any other option? How long does it take for them to send the letter? thank you for all the information.
and how do I remove the judgement?
See this article about getting judgments removed from your credit reports. The short of it is, you generally are not going to get a judgment off your credit, but will get it updated to show paid or satisfied. That is all many of us need to move on with credit and finance goals. But read the article and the comments to get a feel for where things go from here.
thank you. I will read the article.
It can take a couple of weeks after your payment clears to get a paid letter.
So ultimately, if i have the capability to pay it all off right now, is that best? Should i just stick with some measly settlement and get it done with.
My ultimate goal is to retain the best credit i can in the end. I want it back to where it was, so that being said, can I get there by settling or is it best to pay in full? For instance, my goal would be to have an amex card back in the future, is it best then to just pay in full?
If you do not pay back an AMEX account in full, and later try to get approved for new card with them, you will be declined.
If you pay ARSI the full amount owed you will have a shot at getting another AMEX card down the road.
Do you have any other accounts that are unpaid or in collection?
okay I am picking up what you are putting down exactly. I have the capability to cover the entire balance of the arsi account no issue (4200) with an 800 emergency fund left in my name. I do indeed want this thing to be marked as “paid” but after reading everyones information I truly want to hard sell them on deleting it for a quick pay in full no questions asked because I’m totally in a position to pay it the completely the second they would agree to that, but how do i approach it with the arsi rep?
-youre a god sent for having answers for people with these situations, I’m confident everyone is very thankful for your aid.
ARSI has absolutely no influence on how American Express reports to the credit bureaus. American Express is not going to entertain a pay for delete offer. You could offer AMEX more than what is owed on the account and they are not going to agree.
Once you settle with or pay ARSI your credit reports will be updated to show the AMEX account is resolved. Your credit can improve from there.
I received the last call (today), which was actually the first from arsi as well uniquely enough. (They just bought the debt obviously) because i’ve received calls last year from a different company.
ARSI did not buy your American Express account. It is highly likely that no debt collector will purchase your debts from AMEX because they do not sell debt. There are some new debt collection rules anticipated for 2016 that could lead to AMEX selling unpaid accounts.
If ARSI just got your AMEX account for collection they will have it for a 2 to 3 months. They are a good debt collector to negotiate AMEX debt with. If it were my account I would look to negotiate the best deal with ARSI and resolve the debt soon in order to avoid the risks of the account landing with another collector that is harder to deal with, or who does not settle for the best savings.
Hey! Thanks for all of your information.
i have two delinquent accounts with american express
1. Central Credit Services has contacted me and the balance was about 6k, I’ve since paid them 330 monthly and told them that I intend on paying and paying until the balance was completed entirely (we are now at 3200).
2. The other I have ignored for a while and just recently received a letter from ARSI (American Recovery Services INC.) This balance is 4200,
last time i made an actual payment (before going delinquent, was probably a year and a half ago.
MY QUESTION: i am completely ready to pay these both off in one shot in full completely. I want to get them OFF my credit report entirely. As i read above, these agencies are collection agencies but like you said amex doesn’t really sell any of its debt, so technically they still own it. i want to approach amex with a pay for delete agreement for both of these account balances and send them a check to get rid of it all, how do I go about doing this?
American Express will not agree to delete these from your credit reports. Best case is paying or settling in order to get zero balance reporting, which is often all you really need in order to accomplish credit and financing goals.
Are you buying or refinancing a home, or do you have some other personal finance goals?
Nope, I’m not doing any of these things in the near future, so I’m not needing it to correct my score fast, however, obviously I’m looking to fix this up asap.
If they wont delete them, then i’ll still want to pay in full and get rid of them as you said, and how do I get sqeaky clean after that? Once they’re paid, can i dispute them on my report and hope they just don’t validate them or take them off that way??
my other question for you, would be, since i’m dealing with two agencies that contacted me, can I even speak with amex or just deal with these people. Didn’t you say somewhere that amex doesn’t really sell debt, they just have people working on their behalf to get it collected, so when working this out, I can work with amex??
If AMEX has your accounts with collection agencies your call to them will typically result in being referred to the collection company to resolve the debt.
When is the last time you got a collection phone call or letter in the mail from ARSI or Central Credit?
Once you pay American Express or ARSI and Central Credit Services your credit reports will be updated to show the accounts as paid. The late pay history will remain for up to 7 and one half years from the date you first stopped making your payments to AMEX.
You can dispute virtually anything on your credit reports. Disputing accurate, current and up to date information by AMEX on your credit reports is likely not going to lead to much. You would basically be doing that to see if you get lucky, and even if you were, I see these accounts pop back on credit reports.
Hi,
I owe AmEx 14,217 and have been deliquent for about 9 months. I went deliquent on several other cards and have settled most of them. I got a letter in the mail yesterday for a settlement offer of $8530 – exactly 60%. I have been getting calls from 877-443-0144 once a day for the last week. Fortunately I am in a position where I will receive enough money w/in the next two weeks to pay the settlement. I am eager to pay it off and begin rebuilding my credit history. The question I have is should i try and negotiate further down to 50%? Also, sent they sent the payment coupon offering a full settlement in the mail does that constitute ‘in writing’ or do I need any other documentation? Thanks in advance.
You may be in a great position to get a far better deal than the 60 percent settlement on your American Express account. Whether or not that is possible, or even something you should try, can vary. Call me to talk more about that at 800-939-8357, choose option 2.
If you do settle for less than what is being offered today you will need a different letter that confirms the different amounts.
I tried to call you a few times but you never answered. Anyways, I called them and and they said if I could pay 50% all at once they would settle. I told them I needed to get to 40%, they talked to their ‘supervisor’ who said 45% so I took the deal. Am glad its over with, looking forward to making the payment and being completely debt free for the first time in a really long time.
Sorry about that. I was away for the long weekend and I can be tied up on the phone solid many days. It is often best to leave a message so I know to return the call, or set up a specific time via email.
Great job getting an affordable deal negotiated on your AMEX account!
Hello Michael,
My friend passed away leaving a lot of debts. Now the wife is being sued by the debt collectors. One debt is a balance with American Express where the wife and children were supplementary card holders. AMEX has written to the wife and children that they are responsible for the total debt of the my friend who was the primary card holder. My question is are they liable for the total debt or only for the portion that they used with the supplementary card?
Thank you
Marie
How certain are you that the wife was not a co-applicant on the American Express credit card? If she was truly only the authorized user I would encourage her to contact an experienced debt collection defense attorney about how to handle the lawsuit. I can email you some contact information to any I know of in her area if you post the name of a large city near her.
It is possible that his estate would be sought for the balance owed to AMEX. And it is is feasible that authorized users could be found liable for charges made after his passing. Talk to the attorney about all of that.
What is the difference between the balance owed at the time of his passing, and the balance on the account now?
I owe about 33K to amex. I have been paying 1400.00 a month for a while, while i was on pay later plan with them, anyway, due to some financial issues i can now only afford 700.00 to them and have had to drop my payments to twice a month for 350.00 each, well below the full amount owed they want now in full. i called to see if i could work out paying them 350.00 on the 5th and 350.00 on the 20th when i get paid for my job and was told absolutely not, amex does not offer payment plans. I about to have my 3rd missed payment, although i am paying some, just not the minimum, any advise on what i should do?
How you approach Amex to resolve the debt can vary based on your ability to pay, how collectible you are viewed, who is collecting for American Express, and a host of other concerns. Give me a call at 800-939-8357, choose option 2, and I can dig into the details of your situation and offer better feedback.
Hi Michael ,
I have been sued by Amex the debt is about $70k , originally dealing with the lawyers office Michael & Associates I had talked to them about setting up payment plan, he asked to have me send an offer which I did never received a response from him , later received the papers in the mail that I had a judgement against me , that was in May -2015, now yesterday they have levied my accounts. I have placed several calls and emails to them which they do not respond to , I have no idea how the levy works or how much at a time they can take , I had 1 personal account that they zeroed out and 1 joint account they took some out of . I also have business accounts for an LLC that were opened with an EIN number and under the business name. I have called the sheriff’s department which is the number the bank gave me and they can’t give me information either they referred me back to Michael & Associates. Is their any one else to contact to get information from about the levy. These people will not return a phone call . I have no idea where to go from here.
Thank You For Your Help
Give me a call to go over the details off line Rae. I can be reached at 800-939-8357, choose option 2.
PS- I forgot to mention that the card has been unpaid since at least September 2014. Also, my mother recently, unbeknownst to me (because I was traveling at the time), sent a letter explaining her situation to Amex and making a payment of $10.
More than likely my mom will not be buying a house on her own thus having a good credit score is not that critical. In fact, I wonder if bankruptcy isn’t a good option for her? The only thing is that her house is in the process of being sold and I do not want her earnings garnished to pay her debt.
Thanks again for your consideration of our case.
Lorena
A chapter 7 is what I want to talk to you about, as opposed to settling with American Express and other creditors.
Does her home have an offer, or is it that it is listed?
Hi Michael,
Thank you for your quick reply. I am awaiting a call back from First Source Advantage any minute now and I am afraid of not settling today as they told me that the offer of 33% to settle the account may be removed if we do not settle today. My mother’s house is in contract right now and if all goes well it should be closing on September 10th. That is why I do not think that bankruptcy is an option as we don’t want her house earnings in jeopardy.
I left you a voicemail and would very much appreciate a call back from you.
Thanks very much,
Lorena
It was good to connect with you Lorena. Please do keep this thread updated with how you progress with your AMEX debt settlement.
Hi Michael,
Thank you for the helpful advice you provide for those of us dealing with debt collectors. I am writing to ask for your advice in how I can best negotiate a settlement for my mother. She is 74 years old and recently divorced. Her ex husband wracked up debt on her Amex card which my mother had for over 30 years with a zero balance as she always paid all of her accounts in full and on time every month. With the divorce she was left with $15K in debt to Amex and we let the card go into default as there were no funds to pay the bill. We now have a little money to work to clear her many debts as a result of the divorce and we would like to begin with the Amex card. Today I took a call from the debt collector First Source Advantage. We offered to pay them $4K to settle her debt. They countered with an offer of 33% or $5, 124 and said that this was the absolute best they could do. I asked for a 24 hour window to review this deal. They said they would call us back tomorrow at 1:30PM. I am wondering if I can negotiate down to closer to 25% or max to $4K. My mother is living in affordable senior housing in NJ and on a very tight budget, she’s even collecting food stamps meaning she has very little to give. Her lifestyle has changed drastically as a result of her divorce and I would like to help her retain what little money she can for healthcare and other necessities. If you wouldn’t mind giving me some tips, I would greatly appreciate any assistance you can lend to us.
With gratitude.
Lorena
Give me a call for a full consult about your mothers situation. I may suggest you make no settlements at all. You can reach me at 800-939-8357, choose option 2. Leave a message if you get voice mail so I know to return the call.
You do not have to commit to anything with First Source Advantage tomorrow, or before we can connect on the phone.
There are instances where you can get AMEX accounts being handled by third party debt collectors settled for less than what is on the table.
I just got served court papers from Amex. Attorney representing is zwicker and associates yesterday. I owe 15 thousand. I did not pay bill for about 4 months. What do u suggest as my 1st response to get best settlement amount. Should I call Amex or the lawyers? Any other tips?
Your next step dealing with an AMEX collection event like this can often depend on how collectable you look Zwicker and Associates.
You may want to call in for a phone consult. I will have numerous personal questions to ask that most folks are reluctant to answer online. You can reach me at 800-939-8357, then press option 2.
Hi Michael,
We got sued by AmXpress last December for a little over 10,000. The suit seems to be brought directly by AmericanXpress, i.e., it is from American Express Legal. I negotiated a 55% deal to stem the lawsuit, payable over 12 months, but have been unable to pay due to college expenses being a top priority for kids., Now, 7 months later, they are ready to move to default, based on a stipulation agreement. (We have 10 days to pay the balance owed.)
We are trading off whether to just let them get a judgment or to try to come up with the $$. My question now, do you know what AmEx typically does with their judgments? The account is in my wife’s name but she wasn’t working and has no $$ in any bank accounts. However she just started a part time job which may lead to a full time position, so I wouldn’t want her to be faced with any garnishment, lest it kills her chances at the full time job. There’s no way Amex knows where she works (I don’t think) but I assume they have ways of finding out. We have a house with a big mortgage and would be exempt from foreclosure for many years if they put a lien on it (unless another housing craze starts in New York suburbs, which is quite unlike). We have a huge Federal tax lien too, over 120,000 from ~ 7 years ago, which is attached to the house.
Granted, a judgment lasts 20 years and they may sell it to a third party, interest at 9% (unless we eventually declare BK), which leads me in the direction of just taking the 55%.
Once the judgment is in place it can be much more difficult to resolve the debt, and 55% may not be on the table again. That said, if getting the money together was going to create a hardship with knock-on affects of its own, it could suggest settling the judgment, after saving up to do so later on, would make more sense.
Are there any other unpaid bills out there besides this one?
Is the tax lien from personal or business related taxes?
Mike – Thanks for the reply. We had a total of 58,000 in credit card bills that we defaulted on, two credit cards of which were AmXpress, 10K (Costco) and 15K, both in wife’s name. We defaulted on all cards in mid-late 2013. I eventually got offers as low as 15% from Chase, one for 9K which I settled for 15%. Then there’s the issue of Federal and State tax owed when you settle, so it’s not as cheap as it sounds. Two other cards from Chase they just wrote off themselves (total of 4K). Hence we are now down to ~45,000 in total credit card default.
We only got sued on the 10K Amex card (so far). The 15K card was originally a Macy’s AmEx, but it is now listed with Department Stores National Bank, and we’re getting settlement offers from ARS National Services collection co. (which were once at around 50% but now they are only offering ~75%, maybe they think our situation is improving). Naturally I’m worried that they will sue on this one too eventually.
The tax lien is a personal one – in the mid 2000’s things were going great until they weren’t. Then the recession hit and 2-3 years of sub-par employment , plus 3 teenagers with only one reduced income, caused the situation that eventually led to default. Considered BK but I don’t pass the means test, so we’re now on an installment plan with the IRS after a few years being uncollectible status – they count all of your expenses but do not include college.
American Express is a priority, but one that has to be juggled with the other account they have, and the other debts too. Call me for a consult at 800-939-8357, choose option 2. If you get my voice mail be sure to leave a message so I know to return the call.