Consumer complaint received 2024-10-03
Product: Debt collection — Credit card debt
Issue: Written notification about debt — Didn't receive notice of right to dispute
Company: AMERICAN EXPRESS COMPANY (WI)

This formal complaint is lodged against American Express ( hereinafter referred to as the alleged creditor ) and its designated third-party debt collector, XXXX XXXX XXXX XXXX for multiple violations of the Fair Debt Collection Practices Act ( FDCPA ). The central issue is whether the alleged debt is legally enforceable. Despite repeated requests for verification of the debt and documentation that would establish the legal enforceability of the alleged obligation, both parties have failed to provide the required proof under the FDCPA. These failures raise significant concerns regarding the legality of their subsequent collection activities, particularly if the debt is not legally enforceable. 

In XX/XX/XXXX, the complainant formally requested verification of the alleged debt from American Express, pursuant to FDCPA 809 ( b ). Instead of providing the legally required documentation to establish that the debt is enforceable, American Express provided billing statements and referenced the Cardmember Agreement ( CMA ). These documents, however, do not satisfy the debt verification requirements under FDCPA, which mandate that the creditor provide documentation proving the debts enforceability, including an itemized accounting of the amounts allegedly owed. The failure to provide this verification raises doubts about the legal enforceability of the alleged debt. 

In XX/XX/XXXX, the complainant reasserted the right to verification under FDCPA 809 ( b ) and specifically requested documentation that would substantiate the legally enforceable nature of the alleged obligation. American Express again failed to meet this statutory obligation and instead extended a settlement offer. Under FDCPA 809 ( b ), extending a settlement offer is prohibited while a verification request is pending and unresolved. Offering a settlement without first providing proof that the debt is enforceable raises concerns about potentially deceptive conduct and represents an attempt to circumvent federal law. The failure to properly verify the debt, combined with the provision of irrelevant documents like billing statements and the XXXX, demonstrates a clear breach of statutory duty under the FDCPA. 

Furthermore, American Express improperly referred the debt to XXXX XXXX XXXX for collection, who initiated communication on XX/XX/XXXX. This referral occurred without American Express first establishing the legal enforceability of the alleged debt. XXXX XXXX XXXX began collection activities without receiving sufficient verification to confirm the debts enforceability. 

XXXX XXXX XXXX also committed significant statutory violations of FDCPA 809 ( a ), by failing to provide the legally required 30-day notice informing the complainant of their right to dispute the debt. Under the FDCPA, debt collectors must, within 5 days of their initial communication, provide the consumer with written notice containing the amount of the debt, the name of the creditor, and a statement informing the complainant of their right to dispute the debt within 30 days. This notice is essential to protect the complainants rights and ensure that any collection activities are lawful. 

In addition to failing to provide the 30-day notice, XXXX XXXX XXXX XXXX XXXX the 5-day subsequent written notice requirement, which mandates that the debt collector issue a written notice after their initial communication, including key information such as the amount of the debt, the name of the creditor, and a statement informing the complainant of their right to dispute the debt. By failing to provide both of these essential notices, XXXX XXXX XXXX engaged in multiple violations of the FDCPA, severely undermining the legality of their collection efforts. 

Under FDCPA 807, creditors are prohibited from allowing third-party collectors to pursue collection efforts when the legal status of the debt remains unverified. By initiating collection activities without first ensuring that the debt was legally enforceable, and by failing to provide the proper notices required under the FDCPA, XXXX XXXX XXXX engaged in unlawful collection practices. These violations not only demonstrate a failure to comply with federal law but also implicate American Express as the alleged creditor who improperly referred the debt without first establishing its enforceability. 

The complainant seeks substantiation of the legal basis upon which American Express and XXXX XXXX XXXX are relying to justify their collection activities. If the alleged debt is not legally enforceable, the implications of their subsequent collection actions are severe, as they would constitute unlawful attempts to collect a debt that has not been substantiated under federal law. The complainant requests a full legal justification for the actions taken and whether American Express intends to comply with the FDCPA and cease all collection activities until proper verification is provided.