Consumer complaint received 2024-08-28
Product: Credit card — General-purpose credit card or charge card
Issue: Problem when making payments — Problem during payment process
Company: AMERICAN EXPRESS COMPANY (CA)

I am writing to address the response I received regarding my complaint to the Consumer Financial Protection Bureau ( CFPB ) concerning the rejection of my payment coupons by American Express ( AMEX ). After careful review, I maintain that my payment coupons constitute valid negotiable instruments, and their rejection constitutes a breach of AMEXs fiduciary duty, non-compliance with their own SEC filings, and a violation of relevant UCC provisions and federal regulations. 

According to UCC 3-104 ( a ), a negotiable instrument is defined as an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if it : - Is payable to bearer or to order at the time it is issued or first comes into possession of a holder ; - Is payable on demand or at a definite time ; and - Does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money. 

The payment coupons I submitted meet the criteria outlined in UCC 3-104 ( a ) and therefore must be recognized as valid negotiable instruments. By rejecting these instruments, AMEX has failed to acknowledge their validity under the UCC. 

Under UCC 3-604 ( a ), a debt is considered discharged if a party tenders payment in good faith and the creditor refuses to accept the payment. My payment coupons, which were properly executed and tendered in good faith, were rejected by AMEX without valid cause. This rejection discharges the debt according to UCC 3-604 ( a ). 

Furthermore, UCC 3-603 ( b ) states that if a negotiable instrument is tendered as payment and rejected, the obligor is relieved of any obligation to pay interest on the amount, and the creditor must return the instrument. Despite my requests, AMEX has failed to return the payment coupons, thereby violating this provision. 

AMEXs actions constitute a breach of fiduciary duty, as the company has an obligation to its customers to honor valid negotiable instruments as a form of payment, in accordance with their own SEC filings. By failing to do so, AMEX has engaged in deceptive practices, misleading me as an investor and customer. 

AMEX 's refusal to accept my valid negotiable instruments as payment, without proper investigation or resolution of the dispute, violates 12 CFR 1026.12 and 1026.13. These regulations require AMEX to promptly investigate and resolve billing errors, including disputes over the validity of payment instruments. AMEXs failure to address the core issue of my right to redeem the negotiable instruments and their reliance on an unsubstantiated claim that the payment coupon is not a valid form of payment violates these consumer protection regulations. 

Failure to address these issues satisfactorily may result in further legal action, including but not limited to, filing additional complaints with regulatory bodies and pursuing legal remedies for breach of fiduciary duty, deceptive practices, and violations of federal law. 

I trust that AMEX will take this matter seriously and rectify the situation promptly.