Consumer complaint received 2016-06-17
Company: AMERICAN EXPRESS COMPANY
State: NY
Product: Credit card
Issue: Credit card protection / Debt protection

Complaint:
American Express is attempting to hold me liable for an unauthorized charge of {$2400.00}. Despite my best efforts to communicate with them, the situation has dragged on for almost five months. 

On XXXX/XXXX/16 I was in a car accident in XXXX, XXXX. The rental was protected by Amex XXXX XXXX ( hereafter XXXX ), as it was paid with my Amex Gold Card ending -XXXX. I immediately notified both the rental company, XXXX XXXX XXXX ( hereafter the merchant ) and XXXX. I obtained a claim number from XXXX : XXXX. 

The following day, on XX/XX/XXXX, I stopped at merchant office to return the car keys. I gave them the claim number and instructed them to direct all damage information to XXXX. The merchant would not hear it. Upon attempting to close my contract, the merchant insisted that I authorize {$50000.00} pesos to be charged to my card, to which I did not agree. Once again I instructed them to contact XXXX. The merchant then refused to give me back my card from behind the counter. We argued, and eventually they returned the card, but it was behind the counter and out of sight for a long time. 

Upon leaving their office, I called American Express Customer Service ( hereafter AEXP ) and told them what happened. I canceled the card ending -XXXX and instructed them not block any charges from the merchant. The representative assured me, on a recorded line, that the card was canceled and that no charges from the merchant or anyone else would be authorized. I traveled back to New York that day, feeling confident that I was protected. 

On XX/XX/XXXX, I saw a charge from the merchant for {$2400.00}. I called AEXP to dispute this charge and demand an explanation. They could not explain how this happened. I said I was not XXXX on this date, reiterated I had blocked this merchant, and that the card had been canceled. AEXP assures me that the dispute will be resolved in my favor. 

On XX/XX/XXXX I successfully dispute this charge, but on XXXX/XXXX/16 this charge is reapplied to my account. I contact AEXP again. They inform me that the merchant has provided documentation to validate the charge. I request to see this documentation. Upon inspection of the documents, I discover that the merchant has forged my signature on the rental contract. I reopen this dispute and indicate that there has been forgery. Separately, I contact XXXX. They inform me that they have contacted the merchant many times but that the merchant has not provided the requested evidence to substantiate the claim. XXXX says they will be in contact with AEXP to obtain the documents in question. Once again I am assured that the dispute will be resolved in my favor. 

As of today, this dispute has not been resolved. I have been in constant communication with both AEXP and XXXX, to no avail. In my research, I reviewed FDIC Section 226.12 -- Special Credit Card Provisions. In these provisions, I am protected from unauthorized use due to these facts : 1 ) the card was not present at the point of sale on XXXX/XXXX/XXXX ; and 2 ) the card ending -XXXX was canceled on XXXX/XXXX/2016. 

After my phone call with AEXP on XXXX, they should have unequivocally precluded use of the canceled card, especially after they were warned that the merchant had behaved nefariously. This responsibility falls completely on them, so any charges on card ending XXXX should have been automatically denied. 

As per XXXX XXXX XXXX b ) ( XXXX ) ( iii XXXX, if the card issuer seeks to impose liability for this unauthorized charge, the maximum it could impose is {$50.00}. But as the card was not present, they do not meet the conditions for imposing liability. 

At this point I think I have cooperated fully and provided more than sufficient evidence for them to reverse this unauthorized charge but, inexplicably, they have not done so. My only resort is to sue them in XXXX XXXX court, but I would prefer to avoid this. I ask for your assistance resolving this matter.

Company response to consumer: Closed with monetary relief