Consumer complaint received 2015-06-21
Company: AMERICAN EXPRESS COMPANY
State: CA
Product: Credit card
Issue: Closing/Cancelling account

Complaint:
XX/XX/XXXX a {$16000.00} payment was made using the menus on the American Express Internet site. Unfortunately, XXXX selected the wrong bank account - there were XXXX bank accounts registered within the XXXX Amx Internet page. XX/XX/XXXX XXXX was notified by Amx of a returned electronic check. Immediately realizing the wrong account had been selected from the menu XXXX reissued the payment from the correct account, this done while speaking with an Amx rep. 
After correcting the matter XXXX asked the Amx rep to please issue a " Stop Payment '' on the original {$16000.00} electronic check. XXXX was concerned that the check would be resubmitted. The Amx representative explained that he could not stop the electronic process, that once it is in the Amx system it can not be retrieved. He suggested XXXX should refer the matter to his bank to have them place a " Stop Payment ''. Following that advice XXXX contacted his bank and issued a " Stop Payment ''. 
XX/XX/XXXX, using the menus on the American Express Internet, XXXX, as normally done monthly, made a payment of {$7700.00}. XXXX chose to use funds from the account he had first used in the XX/XX/XXXX payment referred to above ( the account that had the returned check. ) At the time there were adequate funds in the account and the payment would have been made XXXX days before the due date of XX/XX/XXXX. 
XXXX was contacted by Amx on XXXX XXXX, learning that the check had not been accepted by his bank, even though the account had adequate funds. XXXX contacted the bank to determine why the check was not accepted and paid. XXXX, to his total surprise, learned that a " Stop Payment '' on an electronic check is treated differently than on a paper check. The electronic check " Stop Payment '' stops all payment activity to the Payee from the date the " Stop Payment '' is issued, until the account owner removes the " Stop Payment '' order. XXXX instructed the bank to remove the " Stop Payment '' on Amx. 
XXXX then reconnected with Amx and explained the reason for the non-acceptance of the check. With the Amx representative on the phone XXXX added to the call a representative of the bank, thus allowing the bank to confirm to the Amx representative what had happened and that the account did in fact have funds adequate to cover the electronic check. The Amx representative accepted the information and accepted the payment of {$7700.00}, issuing a confirmation number. This was a recorded call. The Amx representative confirmed to XXXX that the account was now current and the card was good to be used. 
As is evident in the Amx account statement XXXX made XXXX retail charges on XX/XX/XXXX, following the above conversation. 
The following day XXXX received notice from Amx that the XXXX accounts referenced herein were closed. Amx never processed the confirmed payment of {$7700.00}, despite accepting the payment. That action threw the accounts into late status. By cancelling the accounts Amx accelerated the pay over time feature and made a demand for payment of the entire balance, along with increasing interest and late fees. This activity by Amx forced the accounts into default and 90 days + delinquency. This action also caused a forfeiture of the large number of accrued reward points. 
In subsequent phone conversations the Amx representatives stated they had the right to cancel the accounts, this despite the fact that : the payment was made and confirmed by their representative, the funds were confirmed available by the bank associated with the payment, and the Amx representative who processed the payment stated the account was now current and good to use. 
the payment was made in a timely manner. 
Subsequently Amx placed the account in collection. Amx is in breach of contract, grossly negligent, and made negligent misrepresentations.

Company response to consumer: Closed with explanation