Maintain Amex charge card while on a DMP

loopy.magic

Hi all

I am currently going through the final steps of setting up a self managed DMP, the remaining creditors are starting to accept my pro rata payments and I feel a lot better and relieved.

I have an American Express charge card which I use for work purposes, mainly travel related. I was wondering how realistic is it to expect to keep hold of this, I'm 3 months into my DMP and so far Amex have not contacted me or raised any other kind of objections.

Am I being naive to expect this to continue? Could I keep my Amex? (paid off every month with no issues)

Thanks in advance for any responses.

bottleofred

Amex may not be that worried when you are regularly clearing the balance and servicing the card, but I don't think your other creditors would be that impressed. I presume you didn't tell anyone about the Amex card on your financial statement though.

Sparklyfairy

When I started my DMP, I left my Santander card open. However, they started upping my APR to an insane rate (they tend to regularly check your credit report & if there are any missed/late payments to other creditors) & they reduced my credit limit until it wasn't worth having it anymore even though I always maintained at least the minimum payment.

Essentially for a DMP you need to stop using credit. If most creditors are like Santander, and I suspect they are, they will force you down the "no credit" route anyway. It's best to have a contingency plan in place...perhaps start a new savings account & put any/all spare money in it to cover these costs. Hth, SF

DVardysShadow

bottleofred wrote: »

Amex may not be that worried when you are regularly clearing the balance and servicing the card, but I don't think your other creditors would be that impressed. I presume you didn't tell anyone about the Amex card on your financial statement though.

As it is paid off each month, no debt was carried forward. So in that sense, it would be a bit like other creditors getting upset that the Electricity bill is paid each month rather than included in the DMP. As I see it.

loopy.magic

bottleofred wrote: »

Amex may not be that worried when you are regularly clearing the balance and servicing the card, but I don't think your other creditors would be that impressed. I presume you didn't tell anyone about the Amex card on your financial statement though.

I didn't include my Amex card on my DMP and debt list as it is paid off every month from the money I claim back from expenses.

MrsTinks

As someone who regularly incurs work expenses then I would have thought it would be acceptable... after all it's not like you are taking out loads of debt, you can if needed prove that all spend is work related and match it up with work expense claims etc.
Personally I'd say speak to your DMP provider and explain the purpose of the card and see what they say?

loopy.magic

I'm not using a DMP provider, I did take some advice from CCCS and used their Debt Remedy tool. But after that I decided to go forward with the DMP on my own. I'm really more curious as to what American Express's view would be when it comes to possibly doing a regular review of my credit worthiness and finding late payments, arrears and eventually defaults on my credit file.

MrsTinks

Well so long as you service that account they might take the view that you can keep the account. They might lower your credit limit or they might with draw the card. As to which line they will take... how long is a piece of string... it depends on how much debt you have I guess, what mood who-ever is reviewing your account is in, what targets have been set that week etc...
Unfortunately I guess you will just need to wait and see...

loopy.magic

Bump - Has anyone successfully maintened a credit card while being on a DMP? In particular an Amex charge card?

loopy.magic

Now into month 5 of my DMP and still no objections from Amex, 1st default is coming in the next few weeks.