Consumer complaint received 2022-10-29
Company: AMERICAN EXPRESS COMPANY
State: UT
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Problem with fees

Complaint:
On XX/XX/XXXX, we purchased a XXXX timeshare. The XXXX told us about an offer through American Express where you could receive XXXX bonus points and use it to pay off the timeshare cost. We opened the card for the purchase of this timeshare. Fees for closing costs were put on the card ( it was approximately $ XXXX ). About 10 days later, we decided to cancel the timeshare purchase. In that time, we received our card. We waited for the contract cancellation to go through with XXXX. I noticed online that XXXX had provided a credit of some sort because we used the card for a vacation related purchase, and one of the benefits of the card was a credit on any such purchases. I believe that was a {$150.00} credit. Once the cancellation was complete, the XXXX closing fee was refunded to the American Express card. I noticed a statement come through that showed a negative balance ( XXXX ). This was the credit provided by XXXX, which was later removed and given back to XXXX after the closing fee was refunded to us and the timeshare purchase was cancelled. We never took advantage of that fee because American Express took it back when the XXXX fee was reversed. Once we determined all the credit card activity was complete and card balance was XXXX, we closed the card and assumed all was good. About 2 months later, I opened an American Express statement and found a bill for {$150.00}. American Express indicated this was for the annual fee. The annual fee on this card is {$450.00}. However, we closed this card and basically never got any kind of benefit out of it. The perks of travel credits for vacation related purchases was never utilized as American Express removed their {$150.00} credit when XXXX reversed the fee and cancelled our timeshare. XXXX explained that this was the portion of the fee we were pay because we had the card one month. I do not understand that either. How do you get to {$150.00} if the fee was {$450.00} for the year. Simple math shows me the proportional cost to the time I had the card would make that bill {$37.00} because I only had the card one month ( {$450.00} / 12 months ). I didn't keep it one month to use it over 1 month. It was used 1 time for that closing fee, and we only kept it open until we determined that all the credits and charges were handled on XXXX on American Express 's end ( AxEx needed to take their {$150.00} credit back, and XXXX needed to take the charge off our account ). This made our account balance {$0.00} the day we closed it. American Express claims they can not remove this fee if their agent provided a disclosure there could be fees. I work in the credit card industry. The disclosures are the same for every single customer whether they have a balance or not, and they are read to every customer. I did not agree to a standard disclosure with the thinking I had a balance. In fact, my balance was XXXX as far as I was aware at the time. Had I known XXXX planned on charging me {$150.00} for keeping a credit card open for 1 month at the time I closed this card, I would have definitely expressed concern and opposition to this. You can not read a standard disclosure to a client that thinks they have a XXXX balance on their account and use that disclosures to justify a completely unfair fee for a card the received absolutely XXXX benefit from. 
Here is another reason American Express should remove this fee. When I cancelled the XXXX timeshare, I purchased a brand new XXXX timeshare. I cancelled out the account with XXXX and opened the same exact card ( just an American Express XXXX instead of American Express XXXX card ). I am actually going to be paying fees for this new card because I am keeping this timeshare. I can not get American Express to understand two very basis things : 1 ). I did not use the American Express XXXX card. Everything was returned and refunded to a XXXX balance. I had it for 1 month. I should not pay a {$150.00} fee for that. 2 ) I basically put this business right back with American Express by getting their other card that does the same thing with my new XXXX timeshare. This is of more benefit to me because I get benefits that are XXXX related. Why would I keep an American Express XXXX card if I moved my business to XXXX for my timeshare... .I just switched the timeshare company as well as the associated American Express XXXX. I will still be paying American Express their {$450.00} fee on a different card. 
This has impacted my credit, as well. American Express did report this to credit bureaus and it shows as a late {$150.00} fee unpaid.

Company response to consumer: Closed with monetary relief