What do you do when your debt is so bad that it’s out of control? If you’re a business owner, the last thing you want to worry about is whether or not American Express will sue for the money they are owed. This article discusses what AMEX does and does not do when it comes to collecting debts.
A lot of people are worried that American Express will sue for debt when they do not pay their bill.
What will happen if I cannot pay my AmEx Bills?
Traditionally, a company will file suit against a customer to collect on unpaid debts. This usually occurs after three months of delinquency.
Otherwise, when the account is deemed past due, most companies send out a series of letters notifying the customer of their delinquent status and informing them that an action could be taken if the balance is not paid in full by the due date. In severe cases (e.g., where your debt or payment history make it prohibitive for you to accumulate frequent flyer miles), airlines might terminate your privileges without further recourse.
Series of events that Happen when your AmEx Card is Delinquent
If you have an AmEx card that’s delinquent, they will send you letters – but at no point do they mention suing for debt.
They just keep sending more letters until the balance is paid in full or disputed with documentation of repayment/payment plan requested (AMEX has been known to ask for copies of cancelled checks).
AMEX does not sue individuals unless it can be proven there was intent to defraud. This means they usually wait until after all other avenues such as phone calls and written corresp
ondence fail before issuing legal documents against customers who refuse payments. However, this doesn’t mean AmEx is not serious about collecting the debt; they will do whatever it takes to collect on what is owed.
Do this if you cannot Pay your Credit Card
The first thing you should do is call American Express and ask them for a payment plan, or other ways of making payments more manageable. This could include setting up an automatic withdrawal from your bank account each month until the balance has been paid in full (a fee may apply). If you still have problems, notify the company of your financial hardship and they will work with you to make payments more manageable.
The last thing you should do is ignore the letters and hope they will go away. If there’s no documentation of response, AMEX launches a lawsuit against customers who refuse payments in order to force them into bankruptcy where they can be liquidated for what is owed.
How long before American Express sends my debt to collections?
If you’re an AMEX customer and have a past due balance, they’ll send letters for the first three months. After that, if you still refuse to pay what is owed or work out a repayment plan with them, your account will be sent to collections where it will remain on your credit report indefinitely as long as there’s no documentation of payments or dispute filed.
What happens when American Express Sends Debt Collection?
If American Express sends your debt to a collection agency, they will continue trying to collect until the balance is paid in full. This could be an expensive endeavor if you are unable to pay what’s owed. Because of this, it’s important that you work out a repayment plan or other kind of payment immediately so as not damaging your credit score and credit report (which can make getting new loans more difficult).
What to do if you get sued by American Express for unpaid dues?
The best thing to do is to dispute the claim and cross examine them on any charges that might be incorrect before going into bankruptcy.