Consumer complaint received 2016-04-26
Company: AMERICAN EXPRESS COMPANY
State: WI
Product: Credit card
Issue: Bankruptcy

Complaint:
On XXXX/XXXX/2016 I applied for an American Express Everyday card. I received an email stating that my application was pending. I got notification later that day that my application was declined due to past account closures with American Express. I called into American Express on XXXX/XXXX/2016 to discuss the declined application, the informed me that my application was declined due to prior accounts being charged off in Bankruptcy, and that until I paid them back to American Express, American Express would not issue me another credit card ( much different then what the letter I received stated ), I reminded the associate that the balances were discharged in bankruptcy and that I was legally not aloud to pay them back with out paying all my former creditors back. She still tried to transfer me to the recovery area so that I would pay the past balances back. This is a clear violation of US Federal Bankruptcy Code, Attempting to collect a debt after it has been discharged in bankruptcy. I informed the representatives manager of the situation, he tried to cover the situation up by saying she would never ask that I pay back a debt discharged in Bankruptcy. I asked him to have my application reviewed based on my credit worthiness and to speak to someone who could review my application manually instead of a screening software. He sent the request in and told me it would be 2-3 days. 

In the mean time, I tried getting in contact with American Express 's Executive Office to file a complaint against the representative who violated the law and to ensure that my application was being forwarded to the right area for manual review. I was unsuccessful in this matter. I found an email address online for the Chairman/CEO of which I sent an email outlining my complaint of illegal activity and my request. I received a phone call on XXXX/XXXX/2016 from XXXX of there Executive Referral team who listened to the call and did verify to me that the representative did in fact request that I pay off the balance in direct violation of US Bankruptcy law, and did confirm that she would be getting my application over to the appropriate area for manual review. 

On XXXX/XXXX/2016 XXXX called me back and indicated that the RISK area of American Express reviewed my application and declined to move forward with it due to a prior loss American Express took. This is a second clear violation of federal law ( fair lending act ) as they are not basing the lending decision on credit worthiness, they are basing the decision solely on a prior loss American Express took in a bankruptcy. XXXX mentioned that the VP of risk reviewed the application for an override to the prior account closures ( very small loss in bankruptcy ). When I asked what criteria they looked at being that I have much higher income and assets then there standard Amex Everyday card customer ( being that this is there entry level card ) since they did not pull a hard copy or soft copy of my credit report all she could tell me was that it had to do with the prior accounts included in bankruptcy.

Company response to consumer: Closed with explanation