Consumer complaint received 2018-01-15
Company: AMERICAN EXPRESS COMPANY
State: PA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement
Sub-issue: Credit card company isn't resolving a dispute about a purchase on your statement

Complaint:
Here are the details of the event Arrived at XXXX XXXX in XXXX a little after XXXX on the XX/XX/XXXX. Grab a seat and ordered a couple of beers. I gave my card to the girl to start a tab for the evening. ( Card was NOT returned ) Approximately at XXXX myself and my friend that came with me were approached by 2 ladies asking if we wanted to accompany them to the VIP area. We agreed and were taking downstairs to a private area. Upon going downstairs we were told that the charge was {$20.00} per song for entertainment. After 3 hours I was asked to pay the balance due. 
You would figure each song would be about 3 minutes and 30 seconds so approximately 17 songs per hour. So at {$340.00} per hour times 3 hours would be {$1000.00} a person. I was paying for my friend as well so the charge should have been around {$2000.00} for both of us. Including tip that would reflect the {$3100.00} charge on my card ending in XXXX. That charge is fine! After having that time charged to my card we went back downstairs for more entertainment. My friend and I proceeded to spend another 3 hours in the VIP area. Based on {$340.00} per hour times 3 hours would be {$1000.00} a person again. So the total should have been around the same as before. I said just put it on the same card as before. I was told the card declined. I know my available credit and I knew my current balance at the time so I figured American Express was declining the card due to possible fraud. Rather than calling American Express at that time I just put the balance on my XXXX XXXX XXXX card. That card posted to my account in the amount of {$3100.00} which makes sense because it was almost identical to the time spent in the first 3 hours. We also had a bar tab that I paid with a different card for {$1000.00}. At no time would I ever authorize a charge of {$21000.00} to a card that only had a {$20000.00} limit. As you can see by my account history I have never missed a payment nor disputed a charge. I feel that we were completely taken advantage of by XXXX and the charge of {$21000.00} is not valid. There was no merchandise purchased or services rendered so the merchant is not losing anything. At {$20.00} per song the charges that I agreed to make perfect sense which are the {$3100.00} to the AMEX card and {$3100.00} to my XXXX card. 
I began a dispute with AMEX on XX/XX/XXXX after seeing the charge on my account. I have provided documentation to them showing what I have already paid and which charges are valid. I received an email from AMEX in late XX/XX/XXXX stating the dispute has been resolved and my account was credited the {$21000.00} along with the foreign transaction fee. I though the situation was over until I received a call from AMEX fraud department on XX/XX/18 stating they are reversing the credit??? Their reason is because I was in the establishment on the date of the charge, and its not considered credit card fraud because I had my card at the end of the evening. I did NOT have my card the entire evening it was given approximately to the 'waitress ' at XXXX and was not returned until after XXXX. AMEX also advised me to file a police report which I have done and it has been attached. I have also contacted the XXXX Police Department and I am waiting to hear back from the to file a report there also. Also attached is a screenshot of the charges on my AMEX app. 
After doing some further research online I am not the only person that this has happened to. I have read dozens of complaints about XXXX overcharging their guests.

Company response to consumer: Closed with explanation