AMEX and defaults in self managed DMP

PalmSprings2024

Just posting here to see if anyone had experience as to how quickly AMEX default? 2 payments have been missed and the interest is climbing rapidly so keen to know if anyone had experience of this? Many thanks 

MattMattMattUK

PalmSprings2024 said:

Just posting here to see if anyone had experience as to how quickly AMEX default? 2 payments have been missed and the interest is climbing rapidly so keen to know if anyone had experience of this? Many thanks 

From what I understand from on here and experience more than twenty years ago Amex tend to default after the third missed payment, close the account and then they take the legal route to recover any money owed. 

PalmSprings2024

Many thanks @MattMattMattUK
When you say the “legal route” do you mean a CCJ/charging order? 

MattMattMattUK

PalmSprings2024 said:

Many thanks @MattMattMattUK
When you say the “legal route” do you mean a CCJ/charging order? 

Yes. Amex are known for pursuing aggressively and using the full range of options available, I think they also use attachment of earnings as well. 

PalmSprings2024

Thanks for your reply - hoping that I can negotiate a payment agreement if the debts get sold on but good to know the worst case scenario. Is there any chance they can apply to make me bankrupt?!

DullGreyGuy

PalmSprings2024 said:

Thanks for your reply - hoping that I can negotiate a payment agreement if the debts get sold on but good to know the worst case scenario. Is there any chance they can apply to make me bankrupt?!

They tend to litigate rather than sell debts. 

Dont spend enough time on this part of the forum to say if they petition for bankruptcy or not.

MattMattMattUK

PalmSprings2024 said:

Thanks for your reply - hoping that I can negotiate a payment agreement if the debts get sold on but good to know the worst case scenario. Is there any chance they can apply to make me bankrupt?!

They could apply to make you bankrupt, as in it is within their range of legal options, but I do not know of any case where they ever have taken that route for people on here. 

In general Amex do not sell on debts and to not negotiate, they default after the third missed payment, close the account, obtain a CCJ and then take whatever payment plan is agreed via the court. When it comes to card providers they are the least flexible and the most aggressive at recovering debts. This seems to be because their target demographic almost always have the income and/or assets to clear the debt, which means that they have no need to accept a loss by selling on the debt or negotiating. 

sourcrates

Bankrupt? no, it would cost them an arm and a leg to make you bankrupt, with absolutely no way of knowing if you had any assets or not, only HMRC do that kind of thing, a lot of companies may threaten to do it, but the reality is its virtually unheard of for a credit card debt.

Starfish75789

I’ve just missed my 4th payment to Amex. They closed my account 2/3 weeks ago and sent me a default letter (although my credit report doesn’t show this yet). They have also passed my account to NCO Europe to collect. I’m still waiting to hear from them.

ES19901990

Starfish75789 said:

I’ve just missed my 4th payment to Amex. They closed my account 2/3 weeks ago and sent me a default letter (although my credit report doesn’t show this yet). They have also passed my account to NCO Europe to collect. I’m still waiting to hear from them.

Jus wondered how you got on with this?

Starfish75789

ES19901990 said:

Starfish75789 said:

I’ve just missed my 4th payment to Amex. They closed my account 2/3 weeks ago and sent me a default letter (although my credit report doesn’t show this yet). They have also passed my account to NCO Europe to collect. I’m still waiting to hear from them.

Just wondered how you got on with this?

Im still waiting, I still haven’t heard anything. Im assuming at some point NCO will start to send letters but not received any communication from them at all. Credit report is still not showing any defaults.