Product: Credit card

Subject : XXXX XXXX XXXX American Express for Unfair and Predatory Practices Dear Consumer Financial Protection Bureau ( CFPB ), I am writing to formally lodge a complaint against American Express regarding their unfair and predatory practices concerning my business credit card account. In XX/XX/XXXX, I was issued a business credit card from American Express, which was marketed as offering 0 % APR for the first 12 months. However, after a few months of use, I encountered a situation that I believe is not only unfair but also predatory in nature. 

In particular, for a period of XXXX months, American Express allowed me to exceed the credit limit on my card without any immediate consequences or notifications indicating that I was doing so. Based on this lack of response from American Express, I reasonably assumed that additional charges beyond the credit limit were permissible and that the card would decline transactions once the limit was reached. To my surprise and detriment, American Express subsequently increased my APR to approximately 20 %, citing that I had exceeded the credit limit. 

This sudden and drastic increase in XXXX, without prior notice or a warning that I was exceeding the limit, is deceptive and has caused me significant financial harm. This is a violation of my consumer rights, and I believe it represents predatory lending practices. 

Justification for Complaint : Implicit Permission to Exceed Credit Limit : By allowing me to exceed my credit limit repeatedly without notifying me or declining transactions, American Express implicitly permitted these actions. This created a reasonable expectation that exceeding the credit limit would not result in penalties. The sudden imposition of a higher APR is not only unfair but also misleading, as it retroactively penalizes me for actions that American Express had allowed. 

Legal Reference : Under the Truth in Lending Act ( XXXX ), credit card companies are required to clearly disclose the terms of credit, including the consequences of exceeding the credit limit. If American Express did not notify me of exceeding my limit, this could be a violation of XXXX 's requirement for clear and accurate disclosures. 

Failure to Provide Proper Notifications : Credit card companies are legally required to notify cardholders if they exceed their credit limit or if their account status could result in significant changes in terms, such as an increase in XXXX. If American Express did not provide such notifications, it is a clear violation of fair lending practices under the Credit Card Accountability, Responsibility, and Disclosure ( CARD ) Act of XXXX, which mandates that consumers receive notice of significant changes to their credit terms. 

Case Study : In the case of CFPB v. American Express, the CFPB took action against American Express for failing to provide proper disclosures about credit card fees and penalties. This case highlights the importance of transparency and the consequences of failing to notify consumers of changes to their account terms. 

Predatory Nature of the XXXX Increase : The abrupt increase in XXXX to 20 % after the initial 0 % promotional period, particularly if it was triggered by actions implicitly permitted by American Express, could be seen as predatory. This practice places a significant financial burden on consumers who are misled into believing they are within acceptable spending limits. 

Legal Reference : Under the Fair Debt Collection Practices Act ( FDCPA ), creditors are prohibited from engaging in practices that cause consumers undue financial hardship through deceptive or unfair practices. The retroactive penalty of a higher APR falls within the scope of practices that could be deemed predatory and exploitative. 

Comparative Experience with Other Lenders : I currently have XXXX other credit cards with major lenders, including XXXX XXXX XXXX XXXX XXXXXXXX, and XXXX. Additionally, I have had accounts with XXXX and XXXX, which were closed due to intentional inactivity. In my experience with these other lenders, I have never encountered a similar issue. They have consistently followed proper procedures for handling credit limits and APR adjustments, which underscores the unfairness of American Express 's actions. 

XXXX XXXX : The CFPB v. XXXX case illustrates how other financial institutions have been penalized for failing to properly disclose XXXX changes. This demonstrates that American Express 's practices are not in line with industry standards, further emphasizing the unfairness of their actions. 

Request for XXXX : Given the circumstances outlined above, I request that the CFPB investigate this matter thoroughly. American Expresss practices appear to be in violation of several consumer protection laws, including the Truth in Lending Act ( TILA ), the Credit Card XXXX, Responsibility, and Disclosure ( CARD ) Act of XXXX, and the Fair Debt Collection Practices Act ( FDCPA ). 

The CFPBs role in protecting consumers from unfair and abusive financial practices is critical. I hope that this complaint will not only help resolve my issue but also bring attention to practices that XXXX be affecting other consumers. I am seeking a full investigation into these practices and a reversal of the XXXX increase, along with a formal apology and compensation for the harm caused. 

Thank you for your attention to this matter. I look forward to your prompt response and any assistance you can provide in resolving this issue.