Consumer complaint received 2018-12-31
Company: AMERICAN EXPRESS COMPANY
State: TX
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Closing your account
Sub-issue: Company closed your account

Complaint:
American Express consistently alleges it has the right to cancel my card without notice, reason or explanation. 1. ) This statement is in clear violation of 1666 ( c ), the cardholder " need not pay the amount in dispute until the card issuer has complied with 1666, '' and that pursuant to 1666 ( d ), the card issuer " may not restrict or close an account due to a [ cardholder 's ] failure to pay a disputed amount until the [ card issuer ] has sent the written explanation required by [ 1666 ( a ) ] '' Summary of this case from XXXX v. XXXX XXXX, XXXX, XXXX. It must be noted one of the reasons American Express provided for their decision to close my accounts was the revolving credit balances on my accounts. As this platinum card is required to be paid in full every month, the only remaining balance every month was the amount actively being disputed and investigated by American Express. This statement is in clear violation of 1666 ( c ) since the only balances revolving on my account were in dispute and my account was closed due to the revolving balance made up solely of disputed transactions. American Express violated 1666 once more when it failed to properly report the disputed amounts and status to the CRA 's when furnishing negative information. American Express claims all disputed charges were fully investigated and settled. This is contraindicated by reviewing the monthly statements where months after account closure American Express provided statement credits for newly resolved billing errors. While credits were issued for the charge in question, no statement credit was received for interest, fees or penalties assessed on these billing errors. Once again in violation of 1666.

I would also bring the following case summaries in opposition to the stance assumed by American Express : 2. ) Holding that a contract between a credit card company and card holder did not allow the credit card company to revoke the credit card after charges had already accrued because such a contract would be illusory Summary of this case from XXXX v. XXXX XXXX. 
3. ) Holding that because American Express was a New York corporation, there was a sufficient basis to defer to the clause calling for the application of New York law Summary of this case from XXXX v. XXXX XXXX XXXX. XXXX. 
4. ) Recognizing ability of parties to agree upon law that will govern contract provided choice bears some substantial relation to the parties to the transaction Summary of this case from XXXX XXXX v. XXXX XXXX. 
5. ) Declining to give effect to provision in card member contract that would have effectively waived coverage of Fair Credit Billing Act Summary of this case from XXXX XXXX XXXX v. C.F.T.C 6. )  Stating that if the defendant " seeks to avail itself '' on the ground that " its cancellation was proper because it was for reasons other than those prohibited by [ 1666 ( d ) ], '' then the defendant has to establish those facts through " substantial evidentiary proceedings '' Summary of this case from XXXX v. XXXX XXXX, XXXX, XXXX. 
7. ) Applying Maryland choice of law principles in upholding the contractual selection of New York law because one of the parties was a New York corporation and the choice bore some substantial relation to the parties or their transaction Summary of this case from XXXX v. XXXX XXXX XXXX. XXXX. 

American Express has remained stubborn opposition to follow federal statutes and previous judgments. In doing so American Express also falsely advertises it's credit cards. Statements like : * '' No Matter How Many Miles You Travel, You Only Need One Card The Platinum Card can reward you at every stage of the journey. Earn Membership Rewards Points on travel purchases. Enjoy benefits on your way to the airport, while you relax in a XXXX XXXX  before your flight, and once you arrive at your hotel. Discover all the ways it pays to travel with the Platinum Card. '' As well as " Why American Express? Small business owners used their Business Cards from American Express to fund more than {$200.00} billion in business purchases last year.

American Express Business Cards provide the funding that can help you buy what you need when you need it to run and grow your business. '' This would imply mutually agreed upon account terms, especially as each account is custom crafted on an individual basis. The stance American Express has taken and their unilateral approach to account terms, without the need to give any notice, invalidates these advertised statements. One can not trust this would be the only card they'll need or that American Express will fund their business purchases as they can unilaterally decide not to and plunge consumers and businesses into financial ruin should these advertised statements be taken as factual. 

Furthermore, American Express took this adverse action based off information they were aware of was fraudulent on my credit report. While American Express was aware of my true and accurate credit report and that the new negative items posted were fraudulent yet based their adverse action on this fraudulent data knowingly.

Company response to consumer: Closed with explanation