How to Propose Catch Up Payments for American Express

You might be able to negotiate with American Express

If you have fallen behind on payments to your American Express card, the interest charges, fees, penalties and other expenses can make a bad situation that much worse. These additional charges can significantly increase the amount you owe, and the addition of those charges month after month can make it all but impossible to catch up and pay what you owe. That is why it is so important for cardholders to contact American Express as soon as possible and try to negotiate a catch up and repayment strategy.

Things You'll Need

• American Express card
• Telephone
• Paper
• Envelope
• Settlement form

Instructions

1. Call the customer service phone number on the back of your American Express card. Listen for the prompts to see if there is an option to discuss payment plans. If not, just press the option for a customer service representative, then ask to speak to a supervisor when the representative answers the phone. The front-line customer service reps typically do not have the authority to set up payment plans.

2. Explain your financial situation to the supervisor. Be very specific about the reason for your financial difficulty, i.e. a job loss, large medical expense. Clearly state what you want American Express to do, i.e. set up a payment plan, waive interest charges and late fees.

3. Offer to make an extra payment, over and above the minimum due, each month until the balance is paid off. Be sure the dollar amount you offer is something you can afford--if you miss a payment American Express could cancel the entire agreement.

4. Make notes during your telephone conversation. Record any offers the supervisor makes, including offers to waive or reduce the interest on the card and offers to refund any late fees and other charges.

5. Ask for a settlement agreement detailing the proposal and American Express's agreement to the terms you proposed. Wait for the settlement agreement to arrive in the mail, then sign it and mail it back. Be sure to read the document carefully to make sure it contains the exact proposal you worked out over the phone. If it does not, contact American Express and ask that an amended agreement be prepared.

6. Mail the completed settlement agreement to American Express. Make your first catch up payment and send it with the completed form. Continue to make your regular catch up payments until the entire balance has been satisfied.

References

• Debtopedia.com: Saving Money by Negotiating Your Credit Card Debt
• Bankrate.com: Consumers Can Negotiate Credit Card Fees