Consumer complaint received 2022-06-09
Company: AMERICAN EXPRESS COMPANY
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a credit reporting company's investigation into an existing problem
Sub-issue: Problem with personal statement of dispute

Complaint:
Following a small balance left unpaid on my XXXX XXXX American Express Credit Card account, I am dissatisfied with being served a Default Notice. I cancelled the account and paid what I had been told was outstanding, however, a small balance then billed to my account and became overdue. I was not aware of this balance as i could no longer access my account online and as I had been told the total balance was paid, i assumed the payment reminder letter was either a mistake or a late statement balance from before I had closed the account. I am dissatisfied with not being made aware of this balance at the time of cancelling the account. I have asked to have the Default Notice removed from my credit file but have been informed this is unlikely to be possible. Considering I am XXXX XXXX XXXX and never missed a payment the entire time I have held a credit card, For this to now effect my credit score could be detrimental to any mortgage or loan I might wish to get in the future. Their investigation conclusion is the following : Firstly XXXX XXXX, Im sorry the line cut during the first two calls you made on XXXX XXXX. Having listened to the calls I note the line just dropped mid conversation. I realise how frustrating this is. 

In your email you mention you cancelled your account via telephone. However, our records show you contacted us via our LiveChat service on XXXX XXXX and it was cancelled then. I havent been able to locate a call where you discussed the balance to pay. Nevertheless, its your responsibility to know what youve spent on the Card, including pending transactions and any subscriptions which might later get billed if theyre not cancelled. I note during the LiveChat, our Customer Care Professional ( CCP ) informed you any outstanding debit would need to be repaid in full as per the Cardmember Agreement ( a copy of which is enclosed ). 

Although you cant log in online once youve cancelled your account, statements are still produced. A statement dated XXXX XXXX was sent to you showing the outstanding balance of XXXX with a due date of XXXX XXXX. Unfortunately, we didnt receive your payment so the payment reminder letter was sent and a subsequent Notice of Default Sums some days later. 

Please know, we do have an obligation to accurately report all payments in the way they were received, to the credit bureau. As Ive not detected that any errors have been made by American Express, Im unable to ask that our reporting to the credit bureau is changed. I realise this will come as further disappointment, but I hope you can understand as responsible lenders, we must adhere to our responsibilities in that regard. 

Notwithstanding all the above, to clarify, a Notice of Default Sums is a regulatory letter notifying you that interest has been applied to your account. Its not a letter informing you a Default has been registered against your account. I would urge you to contact the credit bureau to ascertain exactly whats been reported and the score they hold for you. 

I would also like to take this opportunity to thank you for your past loyalty as a customer of American Express. 


For the sake of the XXXX which I paid once I finally managed to speak to someone, taking over an hour out of my working day, I believe this should be removed and I would like help to not fall into a trap that could ruin my credit for my younger years. I am not stupid or careless, I am responsible with all of my spending and budgeting and to be treated this way by the first company I get a credit card with is ridiculous.

Company response to consumer: Closed with explanation