AmEx application declined - based on outdated information?

russmacdonald

Hi all,

I recently applied for a British Airways American Express Premium Plus Card, as I hold both an AmEx corporate card for work and I'm in the BA Executive Club and wanted to earn extra points.

My application was referred online, and I subsequently received a letter stating
"Our records show that you previously held an American Express Card, but that your membership cancelled because the account was not conducted in accordance with the agreed conditions of membership.
You will understand, therefore, that in these circumstances we regret that we are not prepared to consider the further application you have now presented."

My current CreditExpert rating is Excellent - around 996.

However, I was made redundant 11 years ago, and entered into an IVA. I held an AmEx Platinum charge card at the time, and obviously the balance of that was included in the IVA.

Now, my circumstances have changed significantly in those 11 years. The IVA and all "adverse" credit entries rolled off my credit report years ago, as required by law.

It seems that AmEx has a long memory, but are they legally entitled to consider information that is over 11 years old in their decision making process? If all lenders did this, then no-one would ever get credit again following any kind of credit problems they had in their past.

Should I appeal to AmEx in the first instance? Does the Financial Ombudsman have jurisdiction in such cases?

Thanks,
Russ.

Buzby

Yes they can. There is no limit to the length of time they can refer to their own historical data. It is only the CRA's and service providers who have to limit their retrieved data to 6 years - even then, the CRA's do not have to dispense with this data, as long as they do not disclose it. The reason is because should the 'reasonable time' they are allowed to retain data is changed, they have the data ready to display.

As for AmEx, the data is theirs and they have no imposed limits on their own information.

bengal-stripe

Well, AmEx lost money on you once and as the old proverb goes:
"Once bitten, twice shy"

russmacdonald

Thanks for the responses.

They seem happy enough for me to have a Corporate Chargecard, and it seems a little unfair that they will forever judge me for having been made redundant 11 years ago, when my personal circumstances today are completely different.

I had thought that there would be regulations for data retention and accuracy that would apply.

piemaeu

Guessing the corporate charge card is paid and maintained by the company you work for.

Appeal the decision explaining what is different now than 11 years ago.

Wheres_My_Cashback

why would they want u back when u screwed them over once before.Reality check needed!

msallen

A corporate chargecard is just that - corporate. Its issued because of who you work for, not on your own merit.

What is inaccurate about the data they hold?

Sorry you don't like, but it's their decision (and I say that as a fellow BAEC member who can't get one).

reclusive46

American Express is infamous for black listing people. They are exactly the same in the US.

lisyloo

that they will forever judge me for having been made redundant 11 years ago

They are not judging you for being made redundant.
They are judging you for borrowing money you didn't pay back.

Have you considered redundancy insurance in your financial planning?
Or perhaps not buying things if you can't pay them back?

russmacdonald

Thanks again for the responses - some more helpful than others.

Just to be clear, my credit history has been excellent for several years, which I have worked hard to restore. I do have a mortgage and credit cards from other lenders which I am paying the balances off and all payments are up to date.

Other lenders have to use the information available from the CRAs within the last six years to make their credit decisions. I guess I will stick with them.

In terms of the redundancy itself, unlike bankruptcy this is not down to any negligence on my part - it is something that happens to you. I had redundancy insurance which covered my mortgage payments to ensure my family and I retained a roof over our heads. Unfortunately, at the time we ended up having no choice but to go into an IVA as after applying for over 40 jobs I had to take one that paid less than half what I had been earning previously.

Nowadays, it's actually very difficult (or expensive) to obtain redundancy insurance because of the economic climate.

Thanks again for your help.

Savvy_Money

I'm pleased Russ your back on your feet. I see it like this - AMEX don't want you - find another provider that does. You could appeal to AMEX but I think it will be a waste of time.

I absolutely agree that redundancy is not your fault - I think you should be proud to have picked yourself up!