AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY CORPORATE CARD LAWSUITS WITH JAFFEE AND ASHER

American Express is one of the most common creditors that we have encountered over the years in both business and consumer debt matters that are sent to collection, litigation, and judgment enforcement. However, American Express also lends to larger businesses with larger revenue on a corporate basis, which means there is no personal guarantor involved. This is rarer than the standard American Express business card or loan debt matter that smaller businesses obtain. An American Express Corporate card or line of credit is different than the standard American Express Platinum or Gold card primarily because these cards always have a personal guarantor that American Express will pursue if a default occurs. With the Corporate card, the risk is higher for Amex since there is no one to pursue if the business shuts its doors, but it is given to larger businesses with much higher revenues, lowering the risk of default from the standpoint of the creditor.

We have seen a recent increase in the filing of American Express Corporate lawsuits, which may mean that defaults are up amongst larger companies and may be an overall bad signal for the health of the economy. When American Express pursues collection and lawsuits on its corporate debt, it usually retains Jaffee and Asher, a collection law firm, to do so. Years ago, Jaffe and Asher were a familiar name when it came to all sorts of collection matters, especially on American Express cases, but it seems that they only pursue their corporate debt matters now. Zwicker and Associates is another law firm that we see from time to time on corporate matters, but they usually handle more of the business and consumer debt matters for Amex.

The corporate client must be defended as with any lawsuit matter, and so it is critical to submit an answer with defenses once a lawsuit is received to prevent a default judgment or, alternatively, to file a motion to vacate the default if one is obtained as quickly as possible. Resolution via negotiated settlement is a very good option when it comes to these matters, given that there is substantial leverage on the side of the defendant. American Express must be concerned when they see a large corporate matter default, as they know that there is no guarantor to pursue if the business fails. They are usually willing to discuss both substantial reductions and longer-term interest-free repayment plans, especially if the debt is a larger one. However, leverage must be obtained by showing that the defendant is willing to litigate the matter, if need be, which is surely taken into account. American Express Corporate debt matters can and should be defended for these reasons and can be resolved, saving the client a large amount off the total balance while obtaining fair repayment options.