Consumer complaint received 2020-02-22
Company: AMERICAN EXPRESS COMPANY
State: DC
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Advertising and marketing, including promotional offers
Sub-issue: Confusing or misleading advertising about the credit card

Complaint:
Dear Sir or Madam, I have been an AMEX cardholder since XXXX. After receiving numerous mail, email and over the phone offers to upgrade my American Express Gold Card to an American Express Platinum Card, I finally decided to do so on or about XX/XX/XXXX. My understanding from the phone call was that I would receive XXXX points after spending {$5000.00} within 3 months and that I would have the card a year from the date I applied. I was also under the impression that I could cancel anytime without penalty and definitely within 90 days and just go back to the Gold Card. ( From my recollection, it was sold to me as a pro-rated or even discounted 90 day trial offer. ) I am a well-educated person, who does ask questions. However, American Express failed to adequately disclose its draconian terms and conditions at the time of application. 

Today, I received a bill assessing me an annual fee. After numerous waits and discussions with at least XXXX supervisor, multiple departments, I learned the following : 1. The anniversary date is the date is from the date I originally applied for the Gold Card, which is in XXXX not XXXX, so I only have the card for 10 months and 12. If I had known that, I never would have applied for the card through this offer. Friends with similar credit ratings and incomes, etc. received a much higher points promotion ( XXXX points promotion ) through applying for a separate card. I would have preferred to do that. 

2. With the retentions department, I learned for the first time, if I cancelled the card, since I hadn't the held card, a full-year, I would have to give back the XXXX points. So essentially under this promotion, it was unduly coercive. They would bill the whole annual fee of {$550.00} ( a significant amount of money ) after 10 months but I had to hold the card, a full year to receive the promotional benefits. This should have been clearly disclosed. I never would have upgraded under these known terms and conditions. 

3. Again with the retentions department, which took me about 40 minutes before I could be transferred there on the grounds that they are busy ( again, seems odd for a {$550.00} a year annual fee ), If I pay my annual fee and then cancel on XX/XX/XXXX, I can receive a prorated refund but ONLY IF I downgrade to another card. I should be able to get a prorated refund on the annual fee regardless of whether I downgrade to another card, given that AMEX is essentially making me hold the card for approximately 2 months or more to retain the XXXX points. 

Again, the obvious drawbacks should have been disclosed clearly. It was material information that the card would run only 10 months but that I would need to hold the card 12 months to receive the benefits. 

I spoke with the following individuals who wouldn't/could n't provide their last names. 

XXXX Identifying # XXXX XXXX XXXX Please also note that AMEX has clawed back some of the benefits of the card since I have been a cardholder such as the lounge benefits by provided no corresponding discount to its cardholders.

Company response to consumer: Closed with explanation