AmEx: Show Me the Tax Return

David Lazarus from the L.A. Times reports that credit card company American Express has, in what a company spokeswoman called “isolated cases,” required certain card holders to send in copies of their tax returns in order to keep their accounts going. This is to prove that the customer has the ability to actually pay them.

“If a cardholder declines to share such info -- and who wouldn't? -- she said that person's card might be canceled or its use could be suspended until the balance was paid down” writes Lazarus.

Of course, according to the spokeswoman, American Express is only trying to “manage its risk prudently.” Drawing upon the credit card industry’s long history of honesty and ethical behavior, she reminds us that “American Express is a brand you can trust.” After all, she says, it’s not like you’re sending your information to some unknown number. Trust us.

In other news, a bill aimed at curbing certain practices within the credit card industry widely critiqued by consumer groups is expected to pass both the House and Senate before being signed into law. It “would limit the ability of card issuers to retroactively increase the interest rate on a consumer's balance. It would also require firms to provide consumers 45 days notice before interest rate changes take effect, and prohibits double-cycle billing and fees.”

According to the Wall Street Journal, 90 percent of Americans favor changes to credit card regulations.