Consumer complaint received 2021-01-21
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:
By correspondence, dated XXXX XXXX, 2021 XXXX precise date not revealed to avoid identification of XXXX XXXX, XXXX received notice by American Express that states, " We're writing to let you know that about XXXX XXXX XXXX an error that occurred on your account listed above. Making sure you know about any mistakes we find is important, so we'd like to explain what happened and what we've done to make it right. '' " Due to a 'system issue, ' the incorrect Plan Fee ( Fixed Finance Charge ) was reflected on the XXXX Agreement we sent you. '' XXXX internal quotation added XXXX. 

After consulting with an American Express customer service agent, XXXX was informed that the " error '' was caused by the marketing team -- not a system issue. Despite the language used by American Express that they were conveying good news to a cardmember, the proposed new XXXX Agreement included : an increase from 1.00 % to 1.33 % Plan Fee ; AMEX removed the ability to the possibility of balance transfers out of the Plan, thereby requiring this Cardmember and presumably others to pay 1.33 % with no ability to transfer ; finally, AMEX modified the agreement to define cash advance to include the purchase of precious metals coins or bullion and digital precious metals products. 

AMEX has instituted their new XXXX XXXX effective immediately. This is a violation of the Truth in Lending Regulations, specifically XXXX Determination of Annual Percentage Rate, which states, in pertinent part : a )... An error in disclosure of the annual percentage rate or finance charge shall not, in itself, be considered a violation of this part if : XXXX XXXX XXXX The error resulted from a corresponding error in a calculation tool used in good faith by the creditor ; and ( XXXX ) Upon discovery of the error, the creditor promptly discontinues use of that calculation tool for disclosure purposes, and notifies the XXXX in writing of the error in the calculation tool. 

As stated, XXXX, the XXXX was informed by AMEX that the error was caused by the marketing team, and not due to a 'system tool ' error ( whatever that XXXX be ). Secondly, if the 'system tool ' was really a calculation tool, AMEX XXXX promptly discontinue use of that calculation tool for disclosure purposes, and notify the XXXX XXXX writing of the error in the calculation tool. Id. 

In addition, pursuant to this XXXX 's regulations, AMEX was required to provide XXXX ' notice of any proposed *permissible* changes to a cardmember 's agreement, however AMEX have notice of a non-permissible change and failed to give the requisite XXXX ' notice. Moreover, upon information and belief, AMEX did not notify the XXXX that it had immediately ceased usage of that certain 'system tool ' or provide the required written notice to this XXXX of the error in that tool, whether it be a calculating-tool or a evasive synonym of 'system tool. ' By engaging in these acts, without excluding the possibility of other unlawful acts not listed herein, AMEX has violated the Truth in Lending Act to the harm and detriment of its affected cardmembers, including XXXX.

Company response to consumer: Closed with explanation