Consumer complaint received 2021-03-11
Company: AMERICAN EXPRESS COMPANY
State: TN
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Other problem

Complaint:
In XXXX of last year we disputed a charge with American Express for a pair of earrings that were purchased at the XXXX XXXX XXXX in XXXX, Hawaii in XXXX of XXXX. These earrings were just shy of a thousand dollars in cost ( exact amount shown in attached document ). They were represented to us at the resort as rough cut diamonds, and carved amethyst set in sterling with an overlay of 18 karat gold and rhodium. The earrings were not even worn until last summer and upon wearing the first time, one of the center 'amethyst ' stones fell out of the setting. As soon as our local jeweler reopened following shutdown, the earrings were left for repair. To our extreme surprise the jeweler informed us that they could not be repaired because they were made from pot metal, not sterling, not gold, not rhodium. No precious metal at all, and the 'amethysts ' and -'diamonds ' were quartz costume jewelry stones. This was being sold for $ XXXX by XXXX XXXX  ( the location is now closed ). The dispute was filed with American Express and was ultimately denied becuase they supposedly couldn't reach the merchant. It was suggested we go through Purchase Protection. This was done with the understanding that we would receive further direction by mail for submitting our proof for coverage of the earrings. This never occurred. After a month of no further communication, I called American Express to inform them we had not received any further direction. The individual that I spoke with was extremely curt and borderline rude, informing me the claim was closed. When I questioned why, he kept stating it wasn't covered under the plan. I continued to question him about specifics and the discrepancy in what we had been advised to do by American Express and our extreme frustration, he remained silent and would not address my concerns. A few days later, on the same day, two letters arrived dated one day apart. One one XX/XX/XXXX, the other XX/XX/XXXX, the first was the letter we had been told we would receive to provide documentation, the second a letter informing us our claim was denied for the reason that the item was " one of a kind, antique, or previously owned '' NONE of which was true or applicable to this purchase. Again, the letters arrived the same day and dated a day apart, clearly form letters sent out to cover their bases after my phone call. It is very clear that American Express is not protecting their cardholders from fraud or unscrupulous business practices. They charge high membership fees yearly for supposedly providing benefits for situations such as this, then refuse to act or provide the protection and insurance they sell to their consumer. We have a certified statement ( attached ) by our gemologist that these earrings are " pot metal costume jewelry ''. We have emailed XXXX XXXX twice with no response as well. American Express is responsible for protecting their cardholders in such circumstances and yet they do not act, send out form letters that have no basis in fact, and close claims and disputes so that they can be absolved of their responsibilities. We demand a credit for these earrings to be processed to our American Express card.

Company response to consumer: Closed with explanation