Is American Express Collections Hurting Your Credit?

Who is American Express?

American Express, often abbreviated as Amex, is a multinational financial services corporation based in New York City. Founded in 1850, the company has grown into one of the largest and most recognizable names in the financial industry, renowned particularly for its charge card and credit card services.

In the United States, American Express is one of the biggest credit card issuers, known for its range of consumer, business, and corporate credit cards. These cards offer various benefits and rewards programs, often tailored to cater to the needs of different user profiles, such as frequent travelers, small business owners, or those looking for cashback benefits.

However, like any credit card issuer, American Express expects cardholders to meet their agreed-upon payment obligations. If a cardholder fails to make their monthly payments, the account may go into default. This default can be reported to credit bureaus and listed on your credit report as a collection account.

How can I remove Amex Collections from my credit report?

Collection accounts can impact your credit score for up to seven years, so it’s essential to address them promptly. To remove collections from your report, start by disputing any errors related to the account with the credit bureaus.

If the information is accurate, consider negotiating a “pay-for-delete” agreement, where you offer payment in exchange for the account’s removal. Another option is to work with a credit repair service that specializes in challenging collections.

Should I contact or pay American Express?

Before contacting a collection agency, verify that the debt is legitimate and accurately reported. Credit reports can contain errors or list debts that are no longer valid. Also, be aware that making payments on a debt can reset the clock and potentially harm your credit.

The most effective way to deal with American Express collections is to work with a credit repair professional. They help remove millions of negative items every year from companies like American Express on behalf of their clients.

Will American Express sue me or garnish my wages?

American Express can sue for unpaid credit card debts. If they win the lawsuit, they might obtain a court order to garnish your wages. This means a portion of your paycheck would be directly sent to them to pay off the debt.

However, legal action is usually not the first recourse for a credit card issuer. They are likely to attempt multiple communications and payment arrangements with you first. If you’re unable to pay your debt, American Express may sell your debt to a collection agency, which can then decide whether to pursue legal action.

American Express Collections Complaints

Many collection agencies have numerous complaints filed with the Consumer Financial Protection Bureau (CFPB) and the Better Business Bureau (BBB). Most complaints are about inaccurate reporting, harassment, or failure to verify a debt. If you are being harassed, consider filing a complaint.

You have many consumer rights under the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). These rights include disputing credit reporting errors and being treated fairly and respectfully by debt collectors.

Your Rights When Dealing with American Express Collections

Debt collectors must follow state and federal laws. The Fair Debt Collection Practices Act (FDCPA) prohibits abusive, unfair, or deceptive practices and ensures your rights are protected:

• It is a violation of federal law for American Express to report inaccurate or incomplete information about you.
• You have a legal right to request debt validation on an alleged debt. Send the collection agency a debt validation letter. They have 30 days to prove the debt is yours and the amount is accurate.
• American Express cannot threaten or harass you, call repeatedly, swear at you, or publicly publish a list of debtors.
• American Express must be honest about who they are and their purpose. They must notify you in writing and verbally that they are a debt collection agency.
• American Express cannot threaten to have you arrested or imprisoned for unpaid debts.

Remove American Express Collections From Your Credit Report Today!

Credit Saint offers assistance with disputing American Express credit card accounts. With over 15 years of experience, they have worked with clients to address incorrect entries on credit reports.

If managing collection accounts feels overwhelming, working with a trusted credit repair company could be a helpful step toward improving your credit.

Visit their website or call (855) 281-1510 for more details.