Consumer complaint received 2023-12-11
Company: AMERICAN EXPRESS COMPANY
State: UT
Product: Payday loan, title loan, personal loan, or advance loan
Sub-product: Installment loan
Issue: Getting the loan

Complaint:
American Express sent me a prescreen loan offer, via the customer dashboard for the two credit card products I have, that said I was pre-qualified for a unsecured closed-end loan. I applied for the pre-qualified offer for the American Express Personal Loan in XX/XX/XXXX. I received a communication, dated XX/XX/XXXX, titled " Important Information Regarding your Loan Application '' which asked for " some additional information to verify your identity and ensure your security. '' I was directed to contact the American Express Fraud Department within 30 days of the communication at XXXX or else my application would receive no further consideration. I called XXXX on XX/XX/XXXX, within 8 days of the date of the letter and within the 30 day deadline stated in the Notice of Incomplete Application letter dated XX/XX/XXXX. Using the IVR phone system, the automated system told me that I had verified by identity by calling from the telephone associated with my American Express account/loan application and entering the correct One-time Passcode provided in the XXXX. My cell phone records show that the call lasted more than 1 minute. 

I received no other requests for additional information or documentation from American Express until I received a communication, dated XX/XX/XXXX, that it " cancelled [ my ] application because we were unable to verify [ my ] identity. '' after it had told me that it had verified by identity. 

I note that I've been an amex customer since XXXX and I have had an American Express Personal Loan, at least once in the last two years, all while living at my same physical address that I included on my Loan application. Amex knows my identity in the first place, so even this second step to confirm with the Fraud Department is unnecessary. 

Amex has violated my consumer credit rights in offering me a prequalified product that it did not intend to offer a final approval. Enticing myself and other customers to apply but being deceptive about its capability to extend credit to qualified applicants, in violation of Dodd-Frank Act protections. 

Amex has violated my consumer rights as outlined in ECOA, as implemented under Regulation B, by providing XXXX that did not accurately list the requirements necessary to complete an application and then, also, later by cancelling my application after I completed the steps outlined in the XXXX. I completed the tasks outlined in the XXXX and if my application was declined for any other reason, the Amex has violated ECOA in not providing an accurate XXXX. 

This is the second time that I have applied for an American Express Personal Loan where Amex has failed to comply with federal consumer protection rules and regulations regarding prescreen offers and providing the accurate and complete notices and disclosures in a timely manner. As this is not my first encounter with this treatment in the last year, the " I '' ssue at Amex appears to be systemic and ongoing and most likely affects a larger consumer population.

Company response to consumer: Closed with explanation