Consumer complaint received 2017-10-25
Company: AMERICAN EXPRESS COMPANY
State: FL
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Advertising and marketing, including promotional offers
Sub-issue: Didn't receive advertised or promotional terms

Complaint:
Both myself and my husband opened balance transfer cards with American Express. I transferred {$750.00} to one card in my name and my husband transferred {$1500.00} to a different card in his name. We were suppose to receive a 0 % promotional interest rate on both cards for 12 months. On my first statement, I was charged about {$7.00} in interest, so I called the company and they said they would resolve it. It was never resolved and on my second statement, I was charged another {$15.00}. I did not charge any additional amounts/purchases to the card and I have made all payments a few days before the due date. Similarly with my husband 's account, he was charge {$13.00} on his first statement, and {$25.00} on his second statement after already notifying American Express. We have called in on both accounts twice for a total of 4 separate instances ( each instance of interest charged ). On our most recent call, we were told that it was a known issue and they would credit the account for the interest charged but were unsure if this would resolve future statements and to call if we noticed interest on our statement. I told them that I should not have to keep calling in to have compounding interest removed from our cards and that the amount we were being charged did not even make sense since we keep making payments and we were not making any additional charges regardless of the promotional period. I was told by American Express that they were only able to fix this issue for people who called in. Though I have finally received a credit, I feel that since this happened to both of our accounts, that we will both be charged interest again next month and will have to have it credited again. The credit only happened after I told American Express they had violated the TILA Act as well as the Credit Card Act of 2009 because they originally claimed when I called in that the interest was from the balance transfer fee. My balance transfer fee was only {$22.00}, my minimum payment was {$35.00}, and my on time payment was {$63.00}. With my husbands, the balance transfer fee was {$30.00}, minimum payment was {$49.00}, and his on time payment was {$120.00}. Thus, there should be no interest at all since the over payment should pay for the highest interest balance anyway, and I have a feeling that American Express is charging hundreds, if not possibly thousands of customers with interest that they are not even aware of. The only way to see this charge is if you read the bottom lines of your statement. Most people set up an automatic transfers or purchase additional items and possibly do not notice the inconstancy. I believe American Express is taking advantage of people and breaking the law. Again, they confirmed that this is a known issue and that they can fix it only if you call and argue with their customer service representatives. Though I plan to pay off this card and close it as soon as possible, I feel it is important this issue be reported to help make this right for American Express users.

Company response to consumer: Closed with monetary relief