Before we issue this credit card, let's talk about your mother...

A woman who pretended to be a Saudi princess to get an Amex black card is suing Amex because they should have known she was mentally ill and shouldn't have the card

First of all, it doesn't make sense that Amex would court people who have they know can't pay their credit card bills, since Amex winds up footing the bill for those transactions. More importantly, if she wins this, will credit card issuers have to examine the mental health of everyone who applies for a card? In addition to filling out my job and salary info, will I have to tell Amex that sometimes I feel sad and lonely?