Consumer complaint received 2016-10-01
Company: AMERICAN EXPRESS COMPANY
State: GA
Product: Credit card
Issue: Credit determination

Complaint:
I have an American Express account that I opened a few months ago and I had fraud on my account and it ended up triggering a financial review on my account because they ran up all the available credit of XXXX on the card. I explained the fraud issue and the guy in the financial review department did n't care and asked that I complete a form allowing them access to my tax records to which I refused because I do n't feel comfortable with that and as a result I requested the account be closed. After the fraud issue had been resolved I ask to have the account reopened and was told I had to reapply for a new account because old one was closed out 2 months ago or so. So I most recently about a week ago reapplied for a new account and system denied me saying I already had the max number of accounts so I called and spoke with someone and explained what had happened, they said they understood and would have to send the application to their underwriting department to see if it could be approved and I would receive a reply in 3-5 days. I never received a reply so I called back in and spoke with someone and they verified my fraud alert and info on my application and put me on hold and came back to line and said congratulations you have been approved and since I had been waiting 6 days since I applied that they would expedite the new card for me, which I got today and activated. I tried to use the card tonight to make an XXXX purchase and it was declined. So I called in and was told by customer service they could n't see the issue and needed to transfer me to account services. I spoke with a very rude woman named XXXX XXXX in the financial review department who asked me to verify my name and info and proceeded to tell me that my card would not work because its was in the financial review department and she needed to send me a form to allow them to request my tax information for proof of income. She was very rude when I asked why I was approved for the card and now they are wanting proof of income, I asked why they did n't ask for that information before approving my application and sending me a new card and establishing a new account for me. She said they just run credit to determine credit worthiness I said exactly so why did you not ask for proof of income before approving the application and she could n't tell me anything other than they can request at anytime. I said I understand by on a brand new account that was just approved, I have n't even made one charge to the account or even used the account even once and you 've put a hold on the account. Why approve the account and then request the info, this should have been requested before the application was approved!! Furthermore, why request it on a newly approved account with absolutely no charges made to it. The first time the approved me they approved me for a XXXX credit line and this time it was only a XXXX limit so I feel this was deceptive and probably illegal. Why run and put a inquiry on my credit and approve an application and then request more information this makes no sense and Im very angry that I took a hit on my credit and a new account showing on my credit report thats going to show open and closed! Once again if you need that information on a new account why not ask for it upfront before approving an application! Seems a bit unfair or maybe a way for you to get more applications on your books.

Company response to consumer: Closed with explanation