Consumer complaint received 2017-12-27
Company: AMERICAN EXPRESS COMPANY
State: TX
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:
American Express offered a 0 % on balance transfers until XXXX XXXX on balances that were transferred before XXXX/XXXX/XXXX. 
Submitted an application and approved for a balance transfer of {$1500.00} that was processed on XXXX/XXXX/XXXX. Considering that I only submitted an application for the 0 % balance transfer to take advantage of their offer to save money from paying interest on another credit card, I had applied and had gotten approved as that is what American Express had advertised. 

I have never used the card for any purchases as the sole intent was to utilize the 0 % to payoff a previous credit card. When the first billing cycle closed, I was charged interest of {$8.00} for the balance. I have reached out to American Express via their Mobile App on XXXX/XXXX/XXXX and asked as to why I was being charged interest as that is NOT what they had advertised to get me to apply for their credit card. 

I received the response from their representative CONFIRMING that my introductory APR on Balance Transfers posted to my account by XXXX/XXXX/XXXX is a variable rate of 0.00 % through my billing period ending in XXXX XXXX. After that, my APR will be a variable rate of the Prime Rate + 14.74 %, currently 18.99 %. 

So when I asked why was I charged interest, there response to me was as follows. 

I would like to share that there is a KNOWN issue and our team is working on resolving it. Let me open a request for your account. I have raised a request for your account once the inquiry gets completed, the finance charge will be reversed. 

I had then asked to file an official complaint as this was a deceptive act as they did not honor their advertised program of 0 % interest on balance transfers and had I not reached out, they would have not submitted for the issue to be corrected. I did advise to them that since this was a KNOWN issue, that this may also be impacting several other customers that have opened an account with them and I should n't have even had to reach out to them for them to correct it. 

It is now XXXX XXXX, XXXX and the Finance charge still has YET to be reversed off of my account. When I reached back out to them again on XXXX/XXXX/XXXX, their response was that they still had to investigate and will receive an answer within 6-8 weeks. AFTER they have admitted that there was a known issue on their system, and that it would be corrected. 

So now another billing cycle has ended, and am now charged with more interest of now {$25.00}. I still have yet to use the card to make an actual purchase but am being charged interest either way. I have noticed on the statement that they have submitted my balance transfer as a " purchase '' rather than a balance transfer. 

I have attached both of my statements to show that it clearly shows that there was a balance transfer, and it was wrongfully inputted as a purchase. 

American Express still has not submitted the correction and have now resulted in me having to file an official complaint with CFPB as this is a deceptive act as they offered me 0.00 % interest, and the are not honoring it.

Company response to consumer: Closed with monetary relief