AMEX has been doing it for years.You also have the universal default clauses inall the credit agreements. I tell all my clients that if they have a personal AMEX and business AMEX and they file personally, AMEX will close the business card. Just had a client where son wasalso on the card. They closed it and won't even let him pay off the balance.There's legislation pending to change credit card practices, but won't go into effect until sometime in 2010 and now I've heard they are going to push it back again - guess who has the stronger lobby!!!
Andrew Goodman
LAW OFFICES OF ANDREW GOODMAN
21650 Oxnard Street, Suite 500
Woodland Hills, CA. 91367
818-827-9250
818-932-3684-fax
andyg1207@yahoo.com
________________________________
To:
cdcbaa@yahoogroups.com
Sent: Monday, April 20, 2009 8:53:03 AM
Subject: [cdcbaa] Sole Proprietor Debtor Blacklisted on Merchant Account
I have a Chapter 7 client who runs a small retail shop. When he accepts payment from his customers via credit cards, he runs them through his American Express merchant account. He also owed American Express on a separate credit card. About 30 days after the Chapter 7 filing, American Express closed his merchant account (which was not unexpected), but also sent alerts out to other providers, in essence blacklisting him. The upshot is that because of the American Express alert, he has not been able to find an another entity to handle his credit card transactions. Is this legal? Any suggestions?
AMEX has been doing it for years. You also have the universal default clauses in all the credit agreements. I tell all my clients that if they have a personal AMEX and business AMEX and they file personally, AMEX will close the business card. Just had a client where son was also on the card. They closed it and won't even let him pay off the balance. There's legislation pending to change credit card practices, but won't go into effect until sometime in 2010 and now I've heard they are going to push it back again - guess who has the stronger lobby!!!
Andrew GoodmanLAW OFFICES OF ANDREW GOODMAN21650 Oxnard Street, Suite 500
Woodland Hills, CA. 91367
818-827-9250
818-932-3684-fax
andyg1207@yahoo.com
From: Kenneth Schwartz <
kennethjschwartz@yahoo.com>To:
cdcbaa@yahoogroups.comSent: Monday, April 20, 2009 8:53:03 AMSubject: [cdcbaa] Sole Proprietor Debtor Blacklisted on Merchant Account
I have a Chapter 7 client who runs a small retail shop. When he accepts payment from his customers via credit cards, he runs them through his American Express merchant account. He also owed American Express on a separate credit card. About 30 days after the Chapter 7 filing, American Express closed his merchant account (which was not unexpected), but also sent alerts out to other providers, in essence blacklisting him. The upshot is that because of the American Express alert, he has not been able to find an another entity to handle his credit card transactions. Is this legal? Any suggestions?
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