Consumer complaint received 2018-07-30
Company: AMERICAN EXPRESS COMPANY
State: AZ
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Credit card company forcing arbitration

Complaint:
AmEx Breach of Contract XXXX XXXX XXXX aka XXXX XXXX XXXX XXXX XXXX, Arizona XXXX XX/XX/2018 CONSUMER FINANCIAL PROTECTION BUREAU XXXX XXXX XXXX XXXX, IA XXXX Dear Sirs : This complaint is about Breach of Contract by the credit card company, American Express. This company has in fact caused me great damages and the erosion of my credit with other creditors and institutions, due to their failure in Specific Performance and the imposition of Contract Modification that was never agreed upon ; quite the contrary, they are violating what was agreed upon. 
This has brought upon me a series of problems that are not only a part of the breach in our agreement but also in direct violation to many of the Articles in Regulation Z. Among them is the failure to provide the Change-In-Term Notice : Change-in-Terms Notice ( 12 CFR 1026.9 ( c ) ( 2 ) ( iv ) ) If a creditor makes a significant change in account terms that requires a 45-day advance notice, the notice must contain the following information : A summary of the changes made to terms required to be disclosed by 12 CFR 1026.6 ( b ) ( 1 ) and ( b ) ( 2 ) or 12 CFR 1026.6 ( b ) ( 4 ), a description of any increase in the required minimum periodic payment, and a description of any security interest being acquired by the creditor ( 12 CFR 1026.9 ( c ) ( 2 ) ( iv ) ( A ) ( 1 ) ).

In this case, they informed me three days after the fact. We had a running agreement for throughout the month of XX/XX/XXXX yet they cancelled it and changed everything on the XX/XX/XXXX. 

I will not argue that an increase on the credit limit was requested by me ; quite the opposite, they, AmEx, informed me that I had an ample amount to cover my requested authorization to spend {$5500.00} during the month of XX/XX/XXXX and that after XX/XX/XXXX, I could pay over time because I already counted with that feature in my current account. Additionally, they informed me that I could spend up to {$10000.00} during the month of XX/XX/XXXX and begin payments in XX/XX/XXXXthat is, after the month of XX/XX/XXXX. 
So, I would say that this feature was in order but it was not used : 226.51 : Ability to Pay The CARD Act prohibits card issuers from opening a credit card account or increasing the credit limit of an existing account without considering the consumer 's ability to make the required payments. Section 226.51 requires issuers to consider repayment ability for the required minimum periodic payments under the terms of the account based on the consumer 's income or assets and current obligations. 

In essence and to summarize, this complaint is about an agreement with American Express and the fact that they authorized my petitions, on reiterated and recorded telephone conversations. I emphasized that I needed to be totally assured because only then would I make commitments with a travel agency, buy a tour package to XXXX and XXXX and pay for my bills during the month of XX/XX/XXXX, when I would not be working because schools are closed then. To this they replied that I would have absolutely no problems and that I was assured and allowed me to make commitments with others parties in order to execute my plans with an approved amount of {$10000.00} and that I was already authorized to pay over time after XX/XX/XXXX. I again reiterated that I had a prepared budget and that I would not need {$10000.00}, only {$5500.00}. They again answered that this was fine, not to worry and that everything was approved under those terms. 
I do not have the dates for these conversation, they were five at least. The first time I spoke with a representative named XXXX, he gave me his employee ID number as : XXXX. The last person with whom I had a conversation was XXXX # XXXX, someone else called me after that but it was only to dictate and threaten and to undo what agreement I had reached with XXXX, which was very despotic and did not correct the Modifications which they had imposed after the fact and thus annulling the authorization which they had reiterated on at least four occasions. 
TIMELINE AFTER AUTHORIZATION : I called for authorization at the end of XX/XX/XXXX and spoke with XXXX # XXXX, this was a recorded conversation, as were all the conversations that I held with AmEx. 
In the beginning of XX/XX/XXXX ( I cant recall the exact date ) I spoke again with a representative. I would be buying the plane tickets for around XXXX at XXXX XXXX in XXXX, Florida and I didnt want any uncertainties. I again explained to them that I would be committing and must be certain that all was approved. Their Representativethis time I didnt take his name or employee numberverified and reassured me that all was approved and that I could make use of up to {$10000.00} and again I reiterated that I would not go over {$5500.00}. 
A few days later, I had to pay for the tour package which was slightly over {$2200.00} and again I called to make certain all would be approved. The Representative at AmEx again assured me that all that was approved from the first time I spoke with XXXX. I went and paid the amount for the tour package and all went well. 
On XX/XX/XXXX, I received a Statement from AmEx for the amount of {$3400.00} that was not due until XX/XX/2018. I pondered the situation and the fact that I would start making payments after XX/XX/XXXX but since these expenditures had taken place in XX/XX/XXXX, I sent the amount of {$480.00} on XX/XX/XXXX ( which was due on XX/XX/XXXX ). 
On XX/XX/XXXX. I left for XXXX and found the inconvenience that the American Express card was not accepted anywhere in XXXX or XXXX, so I had to make use of my bank card from XXXX XXXX and deplete my reserves. I also borrowed money in XXXX, for food and other expenses. 
At this point, I was sure that I could count with about {$1100.00} to cover my expenses for the month of XX/XX/XXXX ; which included car payment, Internet, food, and a partial amount of my rent, which I would finish covering with my XXXX Social Security pension that arrived on the XX/XX/XXXX of each month. However, when on the XX/XX/XXXX, I tried to make a small purchase at a drugstore, my card was rejected. When I spoke with the Representative of American Express, they told me that I could not use the card and I had to pay them XXXX immediately and of course I could not, not under those changed conditions and without warning. American Express had made Modifications against what had been agreed, without consulting and later informing me XXXX days after the fact. 
At that point, I spoke with someone named XXXX # XXXX and he DICTATED that I must pay {$450.00} on the XX/XX/XXXX of the month of XX/XX/XXXX as they said that I must pay the full XXXX immediately. This would leave me in a state of total inability to cover all my payments for the month as had been agreed as part of my reason for being authorized. I could not have paid on the XX/XX/XXXX,  so I would wait for my pension money to arrive on the XX/XX/XXXX and then pay them after meeting my rent payment which had priority. Nonetheless, American Express got into my XXXX XXXX Bank account and took all my money out, leaving me delinquent with all my other payments. 

Change-in-Terms Notice ( 12 CFR 1026.9 ( c ) ( 2 ) ) When a significant change in account terms is made, the issuer must provide the consumer with a written notice of the change at least 45 days prior to the effective date of the change. A significant change in account terms is defined in Regulation Z as a change to a rate, fee, or other account term required to be disclosed under 12 CFR 1026.6 ( b ) ( 1 ), ( 2 ), or ( 4 ) ; an increase in the minimum periodic payment ; or the acquisition of a security interest.19 For increases in charges required to be disclosed under 12 CFR 1026.6 ( b ) ( 3 ) that do not meet the definition of a significant change in account terms, the issuer may either provide the Change-in-Terms Notice or provide oral or written notice of the amount of the charge before the consumer agrees to or becomes obligated to pay the charge, at a time and manner that the consumer would be likely to notice the disclosure of the charge. 

If a creditor decreases the credit limit on an account, advance notice of the decrease must be provided before an over-the-limit fee or a penalty rate can be imposed solely as a result of the consumer exceeding the newly decreased credit limit. The creditor is required to provide notice in writing or orally at least 45 days prior to imposing the over-the-limit fee or penalty rate and must state that the credit limit on the account has been or will be decreased. 
Credit line increases ( 12 CFR 1026.51 ) Credit card issuers may not increase a consumers credit limit unless they consider the consumers ability to make the minimum monthly payment on the account with the increased credit limit. The ability to pay requirements for credit line increases are the same as the ability to pay requirements for opening a credit card account.35 45 DAY NOTICE : 10. Ensure that the written change-in-terms notice contains the following disclosures ( 12 CFR 1026.9 ( c ) ( 2 ) ( iv ) ( A ) ) : A. A summary of the changes made to terms required by 12 CFR 1026.6 ( b ) ( 1 ) and ( b ) ( 2 ) or 12 CFR 1026.6 ( b ) ( 4 ), a description of any increase in the required minimum payment, and a description of any security interests being acquired by the creditor. B. A statement that changes are being made to the account. 

The estimated monthly payment for repayment in 36 months, as described in Appendix M1 to 12 CFR 1026. The estimated monthly payment for repayment in 36 months must be rounded either to the nearest whole dollar or to the nearest cent, at the issuer 's option ( 12 CFR 1026.7 ( b ) ( 12 ) ( ii ) ( C ) ) ; A statement that the card issuer estimates that the consumer will repay the outstanding balance shown on the periodic statement in 3 years if the consumer pays the estimated monthly payment each month for 3 years ( 12 CFR 1026.7 ( b ) ( 12 ) ( ii ) ( D ) ) ; and A toll-free telephone number where the consumer may obtain from the card issuer information about credit counseling services consistent with 12 CFR 1026.7 ( b ) ( 12 ) ( iv ). ( 12 CFR 1026.7 ( b ) ( 12 ) ( ii ) ( E ) ) Provision of information about credit counseling services. ( 12 CFR 1026.7 ( b ) ( 12 ) ( iv ) ) Required information : To the extent available from the United States Trustee or a bankruptcy administrator, a card issuer must provide through the toll-free telephone number, disclosed pursuant to 12 CFR 1026.7 ( b ) ( 12 ) ( i ) or ( b ) ( 12 ) ( ii ), the name , street address, telephone number, and website address for at least three organizations that have been approved by the United States Trustee or a bankruptcy administrator pursuant to 11 USC 111 ( a ) ( 1 ) to provide credit counseling services in, at the card issuer 's option, either the state in which the billing address for the account is located or the state specified by the consumer ( 12 CFR 1026.7 ( b ) ( 12 ) ( iv ) ( A ) ). 

My complaint is against AMERICAN EXPRESS CREDIT CARD. 

The people involved are all their agents and Representatives. 

Thank You Very Much and my Best Regards XXXX XXXX XXXX aka XXXX XXXX XXXX XXXX. 
XX/XX/2018

Company response to consumer: Closed with explanation