Consumer complaint received 2020-04-24
Company: AMERICAN EXPRESS COMPANY
State: CO
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Problem with fees

Complaint:
This is my second consumer complaint to American Express. I will continue to submit these until the problem is resolved. This was the previous complaint : I received the American Express Platinum credit card on XXXX XX/XX/XXXX. I had the intent to use this card under the assumption that the {$550.00} annual fee for this card would be waived under the Military Lending Act, as I have been on XXXX XXXX military for the last 2.5 years. Every member of my unit who applied for this card had the annual fee waived within a week or two ( I can provide references for that if needed ), and so I went forward and eventually received the card. Around the time the annual fee was charged, roughly XXXX XX/XX/XXXX, I made an inquiry over the phone with American Express to apply for military benefits to have this fee waived. I thought this was strange because when applying for the card, the application asks for your source of income, and I had chosen the military option, provided a street address on the military base I am on, etc. The inquiry came back nearly a month later to tell me that I am ineligible for AMEXs SCRA ( Service Civil Relief Act ) benefits. I submitted another inquiry to make sure that wasnt a mistake. The next inquiry came back with the same results, roughly another month later ( each inquiry was made over the phone, while I tried to explain to each rep. that I was in the military and just wanted to see if I could be credited back the annual fee ). After the 2nd inquiry came back, I spoke on the phone with a specialist from AMEX who allowed me to reopen that inquiry and submit supporting documents, such as my XXXX XXXX orders from my military duty station, which shows my swearing in date ( date I began XXXX XXXX service ) as XXXX XX/XX/XXXX. When that inquiry also came back as denied on XXXX XXXX, I spoke to another specialist, who then told me that their annual fee on the Platinum card is done through the Military Lending Act and in XXXX is determined upon applying for the card. The specialist resubmitted a new dispute inquiry with a comment emphasizing that I was seeking a benefit under the Military Lending Act, rather than the SCRA. This morning, the inquiry was denied again. I have spoken to at least 8 different representatives from American Express to explain this situation and 0 have been able to help. I had to pay this annual fee in order to avoid any late fees. The only reason I applied for this credit card is because of its wonderful benefits and that military members do not pay the annual fee. I am in the military. I make a guaranteed income, but this was a fairly large amount of money for me, and I feel as if there is no one else that can help. American Express customer service has been useless. Please help. 

I received a response from American Expresss customer service team stating that my account is ineligible for MLA benefits as you are not considered a covered borrower until you have graduated from the XXXX. 

I do not know one XXXX  at the XXXX XXXX XXXX that has this credit card and has not had the annual fee waived under the MLA. I am not doubting that others have not had it waived, but the mere fact that I can refer to at least 10 others who have received the MLA benefits, who are also XXXX, shows that there is some sort of inconsistency to your policy. You can not give some XXXX   benefits, and refuse to consider others eligible. 
As you know, my inquiries to AMEX were for the SCRA. I learned later from a representative that this eligibility is for members who are called to XXXX XXXX after their application has been approved. The representative told me that the annual fee is actually waived under the MLA, where eligibility is determined at the time of the application for the credit card. 
According to the Military Lending Act in the FDIC, Covered members of the armed forces include the XXXX, XXXX, XXXX XXXX, XXXX XXXX, or XXXX XXXX currently serving XXXX XXXX pursuant to title 10, title 14, or title 32 of the U.S Code under a call or order that does not specify a period of 30 days or fewer, or such a member serving on XXXX XXXX and XXXX duty as that term is defined in 10 U.S.C 101 ( d ) ( 6 ). 
Title 10, according to U.S. Code, defines XXXX XXXX as such on page 19, The term XXXX XXXX means XXXX XXXX  in the XXXX  military service of the United States. Such term includes XXXX XXXX XXXX XXXX XXXX XXXX, and attendance, while in the active military service, at a school designated as a service school by law or by the Secretary of the military department concerned. These schools include the 3 major service academies to include, the United States XXXX XXXX, United States XXXX XXXX, and the United States XXXX XXXX XXXX. 
I am aware that MLA eligibility is determined upon the application for a credit account with American Express. This eligibility is determined directly from the DoDs database by American Express, but as you likely did not know, XXXX  at approved military academies, although considered XXXX XXXX under Title 10,  do not appear in the DoD database. The rank XXXX is specific to students at their respective academies, and is a separate part of the DoD. So if you search a XXXX name in the DoD database without knowing they go to a military academy, that would make them ineligible for MLA benefits, such as waiving the Platinum cards annual fee. However, as shown above, cadets at the 3 major service academies are considered XXXX XXXX under Title 10, deeming them eligible for MLA benefits. No database can help you understand that, so I did the research for you. Please reconsider this inquiry. 

Here are the supporting documents for your own research if desired : https :   //www.fdic.gov/regulations/compliance/manual/5/v-13.1.pdf https : //www.govinfo.gov/content/pkg/USCODE-2011-title10/pdf/USCODE-2011-title10.pdf

Company response to consumer: Closed with monetary relief