Consumer complaint received 2024-04-30
Product: Credit card — General-purpose credit card or charge card
Issue: Getting a credit card — Application denied
Company: AMERICAN EXPRESS COMPANY (FL)

Hello XXXX XXXX XXXX Director of the Consumer Financial Protection Bureau. 

I would like to thank you for your time on this case. After I try to solve this issue with them and they decide not to perform I would like to report AMERICAN EXPRESS COMPANY and its subsidiaries, hereinafter THE COMPANY, for breaching some representation and warranties and failing to comply with their own SEC agreements. On the date XX/XX/XXXX I entered into a credit consumer Transaction with them which they denied immediately after the adverse action letter ( exhibit XXXX ) stated reasons about credit score and credit Report that I found misleading and untrue statement, let me explain. Particularly when THE COMPANY said in their indenture agreement that some accounts are open under circumstances not requiring the standard application and credit evaluation procedures under the Credit Guidelines applicable to such accounts. Please note, this matter does not relate with credit score or credit reports, I barer a security to THE COMPANY expecting something in exchange relying on their fillings with the SEC. 

Furthermore, on exhibit XXXX their prospectus form dated XX/XX/XXXX and file pursuant rule XXXX ( b ) ( XXXX ) said clearly on page A-1-7 under Composition by Standardized Credit Score Trust Portfolio that I quote XXXX scores are based on independent, third-party information, the accuracy of which we can not verify meaning that the adverse action letter are misleading me, making me think that this denial has something to do with XXXX. However, the company doesn't rely solely on XXXX scores. They have their own methods to assess risk, which they think are more accurate. This lets them lend to people with lower XXXX  scores while managing risk. I understand the Company Worries about the risk that would exist, nevertheless during the securitization transaction process the company will be issuing a Series of notes every month and as an investor/noteholder i have the right to use this notes as a payments following the rules of the UCC and performing according with the regulatory system. In addition, these securities ( Collateral ) are backed by the full faith and credit of the U.S. government and therefore are considered to be free of credit risk. 

Also, i would like to report a securities mishandling, On Exhibit XXXX the Third Amended and Restated indenture between the issuer American Express Issuance Trust and the XXXX XXXX XXXX XXXX XXXXXXXX as Indenture Trustee and as Securities Intermediary dated XX/XX/XXXX specifically on the Grating Clause Page 1 and page 2 you defined the term Collateral in this context refers to a range of assets and rights that the issuer grants to the indenture trustee as security for the noteholders and the trustee itself. These assets include receivables, collateral certificates, funding and collection accounts, derivative agreements, Eligible Investments, rights and more. The purpose of this collateral is to secure the payment of amounts due on the notes, as well as to ensure compliance with the terms of the indenture agreement. 

Since after the denial they did not return the application and withdraw, any of the rights, secured interest, proceed, insurance proceeds accrued on my behalf and/or release of the collateral this action can constitute securities fraud THE COMPANY agrees to be ethically bound to not commit language fraud even in the application by not providing proper disclosures to all investors and not complying with their own agreements to the SEC and investors In this case i would like to quote some statements that the company made under the Form XXXX Annual Report Pursuant to Section XXXX or XXXX ( d ) of the Securities Exchange Act of 1934 For the Fiscal Year ended XX/XX/XXXX Commission File No. XXXX ( Exhibit XXXX ) : XXXX On page 67 : LONG-TERM DEBT AND ASSET SECURITIZATION PROGRAMS As of XX/XX/XXXX, we had {$47.00} XXXX in long-term debt outstanding, including unsecured debt and asset-backed securities. Refer to Note XXXX to the Consolidated Financial Statements for a further description of these borrowings and scheduled maturities of long-term debt obligations. We periodically securitize Card Member loans and receivables arising from our U.S. card business, as the securitization market provides us with cost-effective funding. Securitization of Card Member loans and receivables is accomplished through the transfer of those assets to a trust, which in turn issues securities collateralized by the transferred assets to third-party investors. The proceeds from issuance are distributed to us, through our wholly owned subsidiaries, as consideration for the transferred assets. Refer to Note XXXX to the Consolidated Financial Statements for a further description of our asset securitizations XXXX On page XXXX : NOTE XXXX ASSET SECURITIZATIONS We periodically securitize Card Member loans and receivables arising from our card businesses through the transfer of those assets to securitization trusts, American Express Credit Account Master Trust ( the Lending Trust ) and American Express Issuance Trust II ( the Charge Trust and together with the Lending Trust , the Trusts ). The Trusts then issue debt securities collateralized by the transferred assets to third-party investors. 

XXXX On page XXXX : LIQUIDITY MANAGEMENT : We seek to maintain access to a diverse set of on-balance sheet and off-balance sheet liquidity sources, including cash and other liquid assets, secured borrowing facilities and a committed bank credit facility. Through our U.S. bank subsidiary, XXXX, we also hold collateral eligible for use at the Federal Reserves discount window. 

XXXX On page XXXX : Securitized Borrowing Capacity As of XX/XX/XXXX, we maintained our committed, revolving, secured borrowing facility, with a maturity date of XX/XX/XXXX, which gives us the right to sell up to {$3.00} XXXX face amount of eligible XXXX notes from the American Express Issuance Trust II ( the Charge Trust ). We also maintained our committed, revolving, secured borrowing facility, with a maturity date of XX/XX/XXXX, which gives us the right to sell up to {$3.00} XXXX face amount of eligible XXXX certificates from the American Express Credit Account Master Trust ( the Lending Trust ). These facilities enhance our contingent funding resources and are also used in the ordinary course of business to fund working capital needs. As of XX/XX/XXXX, no amounts were drawn on the XXXX XXXX facility or the XXXX XXXX facility. 

XXXX On Page XXXX : Other Sources of Liquidity : In addition to cash and other liquid assets and the secured borrowing facilities and committed bank credit facility described above, as an insured depository institution, AENB may borrow from the XXXX XXXX XXXX XXXX XXXX XXXX through the discount window against the U.S. credit card loans and charge card receivables that it pledged. 

As of XX/XX/XXXX, AENB had available borrowing capacity of {$60.00} XXXX based on the amount and collateral valuation of receivables that were pledged to the XXXX XXXX XXXX XXXX XXXX XXXX. Whether specific assets will be considered qualifying collateral and the amount that may be borrowed against the collateral remain at the discretion of the Federal Reserve. Following its regular annual review, the Federal Reserve updated the collateral margins for amounts pledged by its member banks, effective XX/XX/XXXX, which reduced AENBs available borrowing capacity through the discount window. Due to regulatory restrictions, liquidity generated by AENB can generally be used only to fund obligations within AENB, and transfers to the parent company or non-bank affiliates may be subject to prior regulatory approval. 

All those statements make me believe and do so believe that The Company is profiting through the securitization process and receiving adequate considerations like accessing to the XXXX XXXX XXXX XXXX XXXX XXXX through the discount window against the U.S. credit card loans and charge card receivables that it pledged by its members, selling the receivables to third party investors and trading on the secondary market. 

Finally page Section XXXX of the indenture Agreement Between AMERICAN EXPRESS ISSUANCE TRUST XXXX, Issuer ; and XXXX XXXX XXXX XXXX XXXX XXXXXXXX, Indenture Trustee and as Securities Intermediary dated as of XX/XX/XXXX. Form of Notes Said ( Exhibit XXXX ) : Each Note will be in one of the forms approved from time to time by or pursuant to an Indenture Supplement. Before the delivery of a Note to the Indenture Trustee for authentication in any form approved by or pursuant to an Issuer Certificate, the Issuer will deliver to the Indenture Trustee the Issuer Certificate by or pursuant to which such form of Note has been approved, which Issuer Certificate will have attached thereto a true and correct copy of the form of Note which has been approved thereby or, if an Issuer Certificate authorizes a specific officer or officers of a Beneficiary to approve a form of Note, a certificate of such officer or officers approving the form of Note attached thereto. Any form of Note approved by or pursuant to an Issuer Certificate must be acceptable as to form to the Indenture Trustee, such acceptance to be evidenced by the Indenture Trustees authentication of Notes in that form or a certificate signed by an Indenture Trustee Authorized Officer and delivered to the Issuer. 

In other words, if you sold this financial asset, filed a XXXX  financing statement, sold all rights, title, interest as you stated on page 104 on the prospectus mentioned above ( Exhibit XXXX ), used the collateral to access the Federal Reserve Window thats means that you approve this note without giving the adequate consideration, which is considered Securities Fraud and the Law crearly appoint Civil penalties and prison. 

However, we do not need to find ourselves at odds. I understand that you sold this financial asset following the guideline on the Purchase Agreement, filed a XXXX  financing statement, sold all rights, title, interest as you stated on page 104 on the prospectus mentioned above ( Exhibit XXXX ), used the collateral to access the Federal Reserve Window and returning it presents an inconvenience for you. You can take Action and open the account ( Ref : XXXX. ) To ensure equitable exchange, I will consider this action as providing valuable consideration. By doing so, you retain all rights over the security interest, proceeds, and insurance proceeds, mitigating any potential harm to the collateral or the interest of THE COMPANY. 

But, If you dont perform your fiduciary duty and continue to deny my application. XXXX continue escalating this Issue and to the different authorities and alert them about the financial irregularities associated with this account. 

The exhibits and this complaint are both included in the accompanying PDF document. 

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