Consumer complaint received 2023-06-13
Company: AMERICAN EXPRESS COMPANY
State: NY
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Closing your account
Sub-issue: Company closed your account

Complaint:
On XX/XX/XXXX, I notified American Express ( Amex ) that my online account was compromised ( hacked ), of a billing error, and other fraud. Specifically, a hacker launched a series of unauthorized electronic debits from my consumer checking account with XXXX XXXX. There were also a series of unauthorized transactions resulting from these unauthorized electronic debits ( ACH ). The Amex representative, XXXX, did not help me process any claims but instead advised me to reach out to a designated team. 

On XX/XX/XXXX, I mailed Amex a billing error notice and put them on notice of violations of the Electronic Fund Transfer Act ( EFTA ) / Regulation E. Specifically, that [ a ] [ h ] acker launched a series of payments by way of ACH in the amounts of {$390.00} ( XXXX times ), and {$200.00} from my XXXX XXXX Account ending in XXXX. I also notified them that three payments were attempted but canceled in the amounts of {$320.00} and {$300.00} ( XXXX times ). I never authorized any of these attempted [ electronic debits ]!! I have not received any response to date concerning my notice nor of any pending investigation. 

Instead on XX/XX/XXXX, I received an email from Amex that both my XXXX XXXX and XXXX XXXX XXXX were canceled. ( Herewith attached ) Neither email contained an explanation for the account closure. 

Infuriated by the XX/XX/XXXX email, I called Amex on XX/XX/XXXX. I told the representative of my billing error notice, the fraudulent transfers, and fraud charges. Unsympathetic to the situation, the agent advised me that in order to properly process any potential claims and possibly reinstate one of my accounts, I would need to make a payment of {$370.00} on the phone immediately. He also advised me that no fraud claims or notices were listed in the notes of the account! Amex did not investigate my claims whatsoever. 

I appreciate my eight-year relationship with Amex and this is concerning that they have completely disregarded my federally protected consumer rights and have not in any way investigated this hack, fraudulent electronic funds transfers ( debits ), nor fraud claims. They could have a potential leak in their system leaving millions of consumers vulnerable to account compromise. 

Violations ( 1 ) Electronic Funds Transfer and Regulation E The Electronic Fund Transfer Act ( EFTA ) and Regulation E apply to an electronic fund transfer that authorizes a financial institution to debit or credit a consumer 's account. 12 CFR 1005.3 ( a ). Here, a hacker launched a series of electronic fund transfers that permitted unauthorized debits of my consumer checking account. Failing to investigate and stop these unauthorized transfers is accordingly a violation of EFTA and Regulation E. ( 2 ) Truth in Lending ( Regulation Z ) / Fair Credit Billing Act
( FCBA ) I delivered to Amex a proper billing error notice consistent with the mandates of 15 USC 1666 ( a ) - ( b ) which was delivered to Amex within sixty ( 60 ) days after the transmission of the statement reflecting the alleged error. XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX XXXX ). 
 15 USC 1666 ( b ) ( 7 ) requires Amex to investigate the billing error and give me a written determination of its findings prior to closing or restricting my accounts. Which Amex failed to do here. 

Damages On top of this inequitable deprivation of credit, I now am stuck paying overdraft fees and have suffered other damages such as extreme emotional distress. Please help me get my accounts reinstated and to have a proper investigation launched by Amex. This is patently unfair, inequitable, and an egregious violation of my federal consumer rights and securities fraud. 

Please do not hesitate to contact my attorney for more detail concerning these claims. My attorney, XXXX XXXX, XXXX. can be reached directly at ( XXXX ) XXXX.

Company response to consumer: Closed with explanation