A large 2012 case with the Consumer Financial Protection Bureau (CFPB) ended with the requirement for Amex to refund $85 to approximately 250,000 customers plus a $27 million fine. Debt Relief Á la carte is not a credit repair company. American Express Legal Debt Collection FDCPA Violations New York Complaint. I charge 10-15% of the savings. Cordoba & Associates has a history of working with American Express to collect defaulted credit card debt. American Express offers world-class Charge and Credit Cards, Gift Cards, Rewards, Travel, Personal Savings, Business Services, Insurance and more. By their representation that they are American Express, they have violated federal and probably state collection laws. They're ordered by the date the settlement was reached. Debt buyers.A debt buyer is different than a collection agency. The first rule in settlement with American Express is therefore to avoid any sort of tactical “games” like debt validation, which are generally unnecessary anyway. January 16, 2020. (full bio). They hired me again about a year later to settle one other account. It also directs cardholders with reservations through Amex Travel to a separate COVID-19 information hub for airline-specific details. For details of each, see pages 11-12 of the complaint, at the link below. Therefore, the offer of $3,100 for a $5,200 debt is approximately 60 cents on the dollar, which is higher than average but not unreasonable. Understand that the majority of settlements with American Express are negotiated through these third-party collection agencies. You might actually owe money to American Express, and so you believe the caller works for them. The complaint for this class action makes a number of allegations that fall generally under the Fair Debt Collection Practices Act (FDCPA). Collection agencies. I’ve worked for large third-party collection agencies, collection attorneys and large debt buyers. Iggy Azalea: $299,000 in debt to Amex. To safeguard American Express consumers, we have required the three American Express entities to reform their debt collection practices. American Express is frequently represented by Modlin Slinsky, P.A.r, Cooling & Winter and Zwicker & Associates, P.C.. Are you being sued or harassed by American Express? The rule of thumb for American Express is 50 cents on the dollar. Copyright © 2002-2020 Debt Relief Á la carte, Inc. All rights reserved. I’ve worked for large third-party collection agencies, collection attorneys and large debt buyers. Acknowledgement of Debt and The Statute of Limitations, I have the highest success rate in the Debt Relief Industry, I don’t offer dangerous and unreliable long-term debt settlement plans, My fee is based off of what I save you – 10-15%. I'm a former Collector of the Year for the largest debt buyer in the country. Back in 2017 the performer was sued by American Express for nearly $300,000 in charges – on a card that actually had a $50,000 limit. These examples of past performance are not intended to be a guarantee of any future settlement results. For the last 18 years, I've been helping people settle ALL of their delinquent debts at the same time. Debt Relief Programs – One Way to Avoid Them, Debt Relief Concerns for Families and Couples, The Role Credit Counseling Plays in Debt Relief, How to Settle Debt with DIY Debt Settlement. Please provide any additional information about your inquiry. Under the Rosenthal Fair Debt Collection Practices Act, American Express may not communicate with a consumer in connection with the collection of any debt— However, in some cases American Express may assign their accounts to third-party collection agencies or debt buyers following overdue payments, often as early as 90 days late. A large 2012 case with the Consumer Financial Protection Bureau (CFPB) ended with the requirement for Amex to refund $85 to approximately 250,000 customers plus a $27 million fine. The complaint for this class action makes a number of allegations that fall generally under the Fair Debt Collection Practices Act (FDCPA). Browse American Express US Customer Service Topics in our Online Help Center to learn how to create your account, confirm your card, dispute a charge and more. Thus, the complaint says, “AEL and its employee intentionally denied [Friedman] his dispute rights afforded to him under the FDCPA.”. Financial Hardship | American Express UK Life doesn’t always go according to plan, and when you face difficult times we are here to offer support. Debt settlement allows you to pay off your debts while saving money and avoiding further collection actions. Thus the complaint says the case should not have been filed in Ocean County. The FTC announced a complaint and settlement with American Municipal Services Corporation (AMS), which collects debts for cities and towns. If you are receiving collection calls from American Express and you are a California resident, you may be entitled to up to $ 1,000 under the Rosenthal Fair Debt Collection Practices Act. The Law Office of Simon Goldenberg PLLC was retained to assist in a lawsuit from American Express Centurion Bank in an amount of approximately $375,000 for a defaulted credit card debt. Being sued is a scary, nerve-wracking experience. Original creditor.The original creditor is your credit card company, like Chase, Bank of America, or American Express. Learn about the dangers of debt settlement, Learn what most debt settlement companies won’t tell you…, I’m a proud 15-year member of consumer advocate Tom Martino’s. american_express_legal_fdcpa_complaint.pdf. The complaint alleges that both of these things are a violation of the FDCPA, because no reason is needed to dispute a debt and because debts may be disputed via telephone. We’re the only debt settlement company he has EVER allowed on his referral list. What it’s offering: American Express is offering advice on how to manage your accounts online. This client was mixed. This field is for validation purposes and should be left unchanged. Misled consumers about debt collection: All three of the American Express subsidiaries deceived consumers into believing there were certain benefits to paying off old debt. American Express Collections is a debt collections agency. If you've fallen behind on your American Express bill or are simply tired of throwing away money each month on interest and fees, debt settlement may be one option for eliminating your debt quickly. (full bio). This includes the consumers’ right to dispute the debt and obtain validation of the debt within thirty days of receiving the communication. Fill out this form for a FREE and prompt case evaluation. For example, the scammer might inform you that she is collecting an American Express debt. I charge 10-15% of what I save you. American Express Bank FSB is a creditor that often files suit on defaulted credit card debt in the state of Texas. If you're interested in finding out what I may be able to settle your debts for please feel free to contact me for a free consultation. They are well known to be debt scammers, the company is run by someone of Indian descent who has an office in western New York, world's capital for dabt scammers, but uses a call center based in Mumbai, India. Amex is not usually known to sell their debt to a third party debt party. The claims made are examples of past performance and are not intended to be a guarantee of any future settlement results. Five classes have been proposed for this action. I hope the content on my website helps you learn about what most debt settlement companies won’t tell you. A collection agencyis a company that the creditor hires to collect the debt on the creditor’s behalf. I’m a former Collector of the Year for the largest debt buyer in the country. Although you’ve mentioned AmEx has said it will not report the debt, I would not recommend that you simply forget about it until the matter is resolved with your former employer. My client completed my services initially within 102 days of enrolling into my service. While we take precautions to prevent the occurrence of errors and omissions, the users of this website should not take the accuracy of the information for granted but should seek individual professional advice that is relevant to their particular situation and needs. Had 50K limit. If you are being sued by American Express for credit card debt, you have options in dealing with debt collectors. Including my fee, this client spent a total of $34,557.61 to resolve $68,685.74, Including my fee, 50.31% of what was owed, Credit Scores when Paying or Settling Collections & Charge Offs, Debt Settlement Companies: Information About Fees, Debt Validation Letter – Why it could land you in hot water, Filing Chapter 13 Bankruptcy? The percentages saved are on the balance at the time of settlement. I always recommend proactive telephone contact with creditors, and American Express is certainly no exception. In Pollak, Firstsource Advantage, LLC (Firstsource) was functioning as a third-party debt collector for its client, American Express. American Express has historically kept their own accounts and pursued them by filing collection lawsuits. Consumers were wrongly told that if they paid off the old debt, the payment would be reported to credit bureaus and could improve their credit scores. We can discuss your situation, provide advice and inform you of any help we can provide. American Express farms out its debt to several third party collectors, and each has their own philosophy in settling on debt. 3 of the accounts were with the original creditors and were settled prior to charge-off. On October 15, 2014, defendant sent plaintiff a … In December 2019, Friedman called AEL to tell the company he disputed the debt. The issuer may be able to lower your monthly payment and provide relief from late payment fees, among other relief measures. Furthermore, the complaint claims, “Upon information and belief, aside from the complaint [Friedman] received from the Defendants, the said December 19, 2019 communication was the Defendants’ initial communication with [Friedman].” The FDCPA requires that certain information be provided to consumers, either within debt collectors’ first communication with them or within five days thereafter. I have a transaction called "Collection American Express 5," for $5.95, which I have no idea about it. American Express is a major credit card company, yet recent years have seen it involved in lawsuits regarding credit card and debt collection practices. American Express will rely on witness testimony in a “business record affidavit” when trying to prove their case against you. American Express files lawsuits throughout the State of Texas for debt collection. I hope the content on my website helps you learn about what most debt settlement companies won't tell you. Learn about the dangers This usually happens when you forget to pay a bill for a period of time, and your debt is sold to them. We use reasonable care to ensure that the information appearing on this website is up to date and accurate. The events in the case seem to begin with the service of a complaint on plaintiff Joel Friedman. Client had 4 accounts totaling $68,685.74. Don’t panic if this happens! However, before the suit was filed, Friedman had contacted Amex to tell the company that he had moved to Brooklyn. The case is brought against American Express Legal (AEL), attorney Alexander Fink, and American Express National Bank (formerly known as American Express Centurion Bank or Amex). It quotes the FDCPA as saying that “the term includes any creditor who, in the process of collecting his own debts, uses any name other than his own which would indicate that a third person is collecting or attempting to collect such debts.”. Collection agencies usually get paid with a percentage of the money they recover or a flat fee. Individual results may vary. In some cases, a settlement can be reached if the debtor offers 30 or 35 percent of the debt in settlement. Although I don't have any debt, I'm getting nervous now because of the word, "collection." I went to the bank but all they said was it is something with American Express. Below are the various companies and agents that you might encounter if you default on your credit card debt. Should I Write a Debt Settlement Offer Letter? Although a third party debt collector known as TSI (f/k/a as NCO) will attempt to collect the debt before they decide to file a lawsuit. Debt settlement with American Express - Nationwide Credit. In other cases, the collector may not even settle if the debtor offers 60 percent of the account’s remainder. I’ve dedicated my website to teaching you about the dangers of long-term debt settlement and when settling your debts can make sense. Many original creditors do not file lawsuits or they sell their accounts to a debt buyer. of debt settlement, Learn what most debt settlement companies won't tell you... We do not provide legal, tax, or investment advice. Debt buyers p… The scam is that the caller has no relationship to American Express, and whatever money you … American Express is a major credit card company, yet recent years have seen it involved in lawsuits regarding credit card and debt collection practices. Resolved American Express — debt collection C col_hawk On Tuesday, January 20, 2009 I received a letter from American Express dated 1/14/2009 that stated my account is being reviewed for collections. The complaint claims, “The summons and Complaint [from Amex] as mentioned above, was served at [Friedman’s] old New Jersey address.” Therefore, the complaint says, “Joel Friedman was never served with a summons and complaint…” Because of this, the “affidavit of service was therefore fraudulent.”. It’s important to face the debt lawsuit head-on with a solid legal strategy than to have a default judgment filed against you that results in an automatic loss for you. I charge 10-15% of what I save you. I was formerly one of the most successful debt collectors in the country. Each show is filled with calls from people needing consumer help, information, and advice. The complaint was filed by Fink of AEL, on behalf of client Amex, on October 11, 2019 in the Superior Court of New Jersey, Ocean County. Tom can be heard weekday mornings on the radio from 9 to noon on Denver’s popular AM talk station 630-KHOW. I help people settle ALL of their debts at the same time. American Express must inform consumers when the debt they are seeking to collect is too old to be reported by a consumer reporting agency and that payment or non-payment will not affect their credit score. The Lawsuit was brought in the Supreme Court of the State of New York by the debt collection lawyers at Jaffe & … And don’t worry, I wasn’t one of those huffy-puffy types. Should I Send a Cease and Desist Letter to a Debt Collector? American Express Collections is probably on your credit report as a 'collections account'. We do not provide debt settlement services in all states. Also, the complaint alleges that AEL and Amex are virtually the same entity, but that AEL can be taken as a third-party debt collector. Please understand that these success stories are not published for the purpose of creating expectations of similar settlement percentages. I also held positions of Collection Manager, Corporate Trainer, and Director of Collection Operations. Most people have no … Other collection efforts, such as letters sent through the mail, can continue, but without the threat of a lawsuit American Express has few resources for collecting an old debt. I've dedicated my website to teaching you about the dangers of long-term debt settlement and when settling your debts can make sense. To find out for sure, call American Express and ask for a copy of the terms and conditions of the card. The amount I am able to settle accounts for varies from client to client and is dependent on a host of factors. A Reliable Alternative Exists. The various classes consist of all persons whom the defendants’ records show live in the state of New York who communicated with defendants’ representatives between January 16, 2019 and January 16, 2020. The representative demanded a reason for his dispute of the debt, then told him that he had to put the dispute in writing. Read Now. The situation could change if the unpaid debt drags on. After that, each class is additionally defined by one or more of the allegations in the complaint. Estimates are based on your collectabilty, our past experience, and settlement performance trends. It’s quite common for American Express to assign their accounts to third-party collection agencies well before the point of charge-off at 180 days late, often as early as 90 days late. The other account was with a collection agency. When a debt collector harasses and threatens you, it can be downright distressing – and illegal. American Express. View the outcome, letters, cost, time to complete. If you need legal advice, legal expertise, or court filings, you must seek the advice of a licensed attorney. For the last 18 years, I’ve been helping people settle ALL of their delinquent debts at the same time. How that one got by American Express, I have no clue, but she wasn’t the only one. The purpose of my success stories is so you may view my service in action and get a better understanding of how my service works. Tom Martino has been fighting for consumers for more than 30 years utilizing Radio, TV, Newspapers, Magazines, and the Internet. American Express provides payment, travel and expense management solutions for individuals and businesses of all sizes. Credit Reports American Express reports to the major credit reporting bureaus, with … I also held positions of Collection Manager, Corporate Trainer, and Director of Collection Operations. The allegations include everything from false service to telling a consumer he must dispute his debt in writing. 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