Consumer complaint received 2024-03-23
Product: Credit card — General-purpose credit card or charge card
Issue: Getting a credit card — Application denied
Company: AMERICAN EXPRESS COMPANY (FL)

I have recently received correspondence from XXXX XXXX of American Express Customer Advocate Services Team regarding a recent complaint lodged with the Consumer Financial Protection Bureau ( CFPB ). In the communication, XXXX asserted that American Express is incapable of retracting my application due to its submission status. However, it is imperative to clarify that this assertion is incorrect. The true reason for American Express 's inability to retract my application lies in the fact that it has already been transmitted in accordance with the Electronic Transfer Act, subsequently transformed into a receivable, and deposited, as explicitly detailed in my previous correspondence. Attached herewith is the transaction history from American Express, delineating the precise movement of funds. 

Moreover, it is concerning that American Express purports to be " committed to treating all customers fairly '' and its representatives pledge to " adhere to all laws and regulations '' while simultaneously engaging in actions that directly contravene this commitment. It is evident that American Express 's actions are in blatant violation of the Equal Credit Opportunity Act ( 15 U.S.C. 1691 ) and a host of other statutory provisions. 

Allow me to elucidate the specific legal infractions perpetrated by American Express in denying my entitlement to unlimited consumer credit. It is imperative that these violations be addressed promptly and rectified to ensure compliance with the law and uphold the principles of fairness and equity. 

American Express 's assertion regarding the initial denial of my application being attributed to a XXXX score is deeply concerning. Despite my explicit inquiry in a prior complaint regarding the factors considered by American Express 's underwriting department in determining this denial, my question remains unanswered. Specifically, I requested clarification on the criteria utilized by the Treasury Underwriting department of American Express to assess the application 's outcome. 

It is disconcerting that American Express attributes the denial solely to a XXXX score, especially considering the utilization of a computerized system for processing applications. This system, as disclosed in your XXXX  XXXX filing dated XX/XX/XXXX, has been acknowledged by American Express itself as unreliable. Therefore, it is imperative that American Express provide transparent and accurate information regarding the comprehensive factors influencing application decisions, ensuring accountability and fairness in its processes. 

We rely principally on the customers creditworthiness for repayment of loans or receivables and therefore often have no other recourse for collection. Our ability to assess creditworthiness may be impaired as a result of changes in our underwriting practices or if the criteria or models we use to manage our credit risk prove inaccurate in predicting future losses, which could have a negative impact on our results of operations. This may be exacerbated to the extent information we have historically relied upon to make credit decisions does not accurately portray a customers creditworthiness, including as a result of the current high rates of inflation and economic slowdown. ( XXXX Filing, dated XX/XX/XXXX, Pg XXXX ) Our use of artificial intelligence and machine learning is subject to various risks including the use of personal information, flaws in our models or datasets that may result in biased or inaccurate results, ethical considerations regarding artificial intelligence, and our ability to safely deploy and implement governance and controls for artificial intelligence systems. ( XXXX Filing, dated XX/XX/XXXX, Pg XXXX ) Once more, I must insist on clarity regarding the factors underlying the initial denial of my application. Given the acknowledgment of potential biases and inaccuracies within American Express 's computerized systems, it is imperative to understand the precise criteria influencing such decisions. The reliance on these systems, as previously noted in American Express 's own disclosures, raises concerns regarding discriminatory practices directed towards me as a consumer. This further substantiates my previous assertion regarding American Express 's violation of the Equal Credit Opportunity Act ( 15 U.S.C. 1691 ). 

Furthermore, I find it necessary to address American Express 's request for my social security number during the application process. Despite the assertion of using it for identity verification, it is crucial to highlight that this request was made under false pretenses. The Social Security Administration 's clarification unequivocally states that the social security number is not intended as a personal identifier for verification purposes. Therefore, by providing my social security number and signature, I inadvertently engaged in a barter transaction. 

American Express 's insistence on the necessity of providing my social security number under the guise of identity verification is not only misleading but also inaccurate. This practice warrants scrutiny and rectification to ensure compliance with applicable laws and to uphold the integrity of consumer rights. 

The social security administration even states that The SSN is the single most widely used record identifier for both government and the private sector, exerting a broad influence on the lives of most Americans. However, by itself, it is not a personal identifier because it lacks systematic assignment to every person and the means to authenticate a person 's identity. You can see this for yourself by visiting their website, XXXX XXXX XXXXXXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 

Upon signing and submitting the application, I assumed the role of an investor in American Express. The application, also denoted as a note in accordance with the company 's prospectus, is slated for transfer by American Express Receivables Financing Corporation. Following this transfer, the funds will be deposited into the American Express Credit Account Master Trust, in accordance with the specifications outlined in the American Express Prospectus, dated XX/XX/XXXX, specifically on Page XXXX, Section Sale of Receivables. 

The act of providing my social security number during the application process to American Express gave Power of Attorney and fiduciary status upon them.The duties of a fiduciary, as outlined in 29 U.S. Code 1104, mandate acting solely in the best interest of the beneficiary. It appears that American Express is not fulfilling this duty, and as a result, I will revoke your status as fiduciary and notify the appropriate authorities. 

The inclusion of my social security number in the application effectively transformed the transaction into a barter exchange. By providing this information, I conferred something of monetary value to American Express. Subsequently, American Express will leverage this data to generate receivables, converting them into cash before transferring and depositing the funds into the American Express Credit Account Master Trust. This application, in essence, serves as a security. American Express has already transferred and continues to profit from its securitization, alongside card member loans and receivables, as disclosed in the 'Asset Securitization ' section of the American Express XXXX filing on page XXXX. 

The occurrence of a barter transaction in the securitization process mandates American Express to complete an IRS 1099B form for this transaction. This action underscores American Express 's divergence from its publicly filed SEC filings, particularly the XXXX form, where American Express explicitly states " We are subject to significant supervision and regulation, and an increasingly stringent enforcement environment, with respect to compliance with anti-money laundering ( AML ), countering the financing of terrorism ( CFT ), sanctions and anti-corruption laws and regulations. Failure to maintain and implement adequate programs and policies and procedures for AML/CFT , sanctions and anti-corruption compliance could have material financial, legal and reputational consequences Filing an IRS form 1099B for this barter transaction would not only be erroneous but could also be construed as facilitating tax evasion and engaging in money laundering practices. A legitimate barter transaction entails a fair exchange of goods or services. In this case, I provided American Express with a security, yet they have retained it without providing any reciprocal benefit. Instead, American Express continues to trade the security and retain the proceeds for their own gain. This behavior contradicts the principle of fair trade and can not be equated with a lawful exchange. Therefore, submitting a 1099B form would be misleading and potentially fraudulent. I am fully committed to informing the IRS of this discrepancy and ensuring that appropriate action is taken. 

I have also pulled American Express Charter report dated XX/XX/XXXX, and in this report it states The OCC has not identified that this institution or any affiliate whose loans have been considered as part of the institutions lending performance has engaged in discriminatory or other illegal credit practices that require consideration in this evaluation. Now with that being said the OCC also states that in the same charter report The OCC will consider any information that this institution engaged in discriminatory or other illegal credit practices, identified by or provided to the OCC before the end of the institutions next performance evaluation in that subsequent evaluation, even if the information concerns activities that occurred during the evaluation period addressed in this performance evaluation. I am fully prepared to report American Express to the Office Of the Comptroller.

Under FINRA regulations, American Express is engaging in securities fraud by retaining my security and withholding all proceeds and interest associated with it. This conduct directly contravenes the Securities Act of 1933, The Securities Exchange Act of 1934, The Trust Indenture Act of 1934, and numerous other statutes. It is imperative for American Express to comprehend that I am fully prepared to pursue legal recourse. I am poised to lodge formal complaints with regulatory bodies including the Office of the Comptroller of Currency, FINRA, SEC, IRS, Civil Penalty Complaint, Federal Trade Commission, Federal Reserve Board of Governors, among others, to ensure accountability for defrauding consumers. American Express must promptly either approve my consumer credit request or retract my application, bearing my original signature and containing non-public information that I do not authorize for sale or transfer to third parties. Failure to retract my application, containing sensitive information, will also breach the privacy act as per the FTC 's guidelines. 

Below, I have provided a comprehensive list of laws and definitions for American Express to carefully review and consider in relation to the current situation. Please take the time to thoroughly assess these regulations and definitions. I must emphasize that this will be my final communication regarding this matter. Any outcome other than the immediate approval of my application or the retraction of my original application will necessitate further legal action. This complaint serves as formal notice of my intentions moving forward. 
___________________________ Dodd-Frank Wall Street Reform and Consumer Protection Act TITLE X Subtitle A Bureau of Consumer Financial Protection ( c ) OVERALL ENFORCEMENT AUTHORITY OF FEDERAL TRADE COMMISSION.Except to the extent that enforcement of the requirements imposed under this title is specifically committed to some other Government agency under any of paragraphs ( 1 ) through ( 8 ) of subsection ( a ), and subject to subtitle B of the Consumer Financial Protection Act of 2010, the Federal Trade Commission shall be authorized to enforce such requirements. For the purpose of the exercise by the Federal Trade Commission of its functions and powers under the Federal Trade Commission Act ( 15 U.S.C. 41 et seq. ), a violation of any requirement imposed under this subchapter shall be deemed a violation of a requirement imposed under that Act. All of the functions and powers of the Federal Trade Commission under the Federal Trade Commission Act are available to the Federal Trade Commission to enforce compliance by any person with the requirements imposed under this title, irrespective of whether that person is engaged in commerce or meets any other jurisdictional tests under the Federal Trade Commission Act, including the power to enforce any rule prescribed by the Bureau under this title in the same manner as if the violation had been a violation of a Federal Trade Commission trade regulation rule. ; and FAIR LENDING.The term fair lending means fair, equitable, and nondiscriminatory access to credit for consumers.

H. R. 4173603 ( d ) ( 1 ) PENALTIES AND FINES. ( 1 ) ESTABLISHMENT OF VICTIMS RELIEF FUND.There is established in the Federal Reserve a separate fund, to be known as the Consumer Financial Civil Penalty Fund ( referred to in this section as the Civil Penalty Fund ). The Civil Penalty Fund shall be maintained and established at a Federal reserve bank, in accordance with such requirements as the Board of Governors may impose. If the Bureau obtains a civil penalty against any person in any judicial or administrative action under Federal consumer financial laws, the Bureau shall deposit into the Civil Penalty Fund, the amount of the penalty collected.

H. R. 4173604 ( 2 ) PAYMENT TO VICTIMS.Amounts in the Civil Penalty Fund shall be available to the Bureau, without fiscal year limitation, for payments to the victims of activities for which civil penalties have been imposed under the Federal consumer financial laws.

Subtitle BGeneral Powers of the Bureau H. R. 4173605 SEC. 1021. PURPOSE, OBJECTIVES, AND FUNCTIONS. ( a ) PURPOSE.The Bureau shall seek to implement and, where applicable, enforce Federal consumer financial law consistently for the purpose of ensuring that all consumers have access to markets for consumer financial products and services and that markets for consumer financial products and services are fair, transparent, and competitive. ( b ) OBJECTIVES.The Bureau is authorized to exercise its authorities under Federal consumer financial law for the purposes of ensuring that, with respect to consumer financial products and services ( 1 ) consumers are provided with timely and understandable information to make responsible decisions about financial transactions ; ( 2 ) consumers are protected from unfair, deceptive, or abusive acts and practices and from discrimination ; ( 3 ) outdated, unnecessary, or unduly burdensome regulations are regularly identified and addressed in order to reduce unwarranted regulatory burdens ; ( 4 ) Federal consumer financial law is enforced consistently, without regard to the status of a person as a depository institution, in order to promote fair competition; and ( 5 ) markets for consumer financial products and services operate transparently and efficiently to facilitate access and innovation. ( c ) FUNCTIONS.The primary functions of the Bureau are ( 1 ) conducting financial education programs ; ( 2 ) collecting, investigating, and responding to consumer complaints ; ( 3 ) collecting, researching, monitoring, and publishing information relevant to the functioning of markets for consumer financial products and services to identify risks to consumers and the proper functioning of such markets ; ( 4 ) subject to sections 1024 through 1026, supervising covered persons for compliance with Federal consumer financial law, and taking appropriate enforcement action to address violations of Federal consumer financial law ; ( 5 ) issuing rules, orders, and guidance implementing Federal consumer financial law ; and ( 6 ) performing such support activities as may be necessary or useful to facilitate the other functions of the Bureau.

IN GENERAL.The Bureau may take any action authorized under subtitle E to prevent a covered person or service provider from committing or engaging in an unfair, deceptive, or abusive act or practice under Federal law in connection with any transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service.

FTC Guidelines on Non Public Infomation The Privacy Rule protects a consumer 's " nonpublic personal information '' ( NPI ). NPI is any " personally identifiable financial information '' that a financial institution collects about an individual in connection with providing a financial product or service, unless that information is otherwise " publicly available. '' NPI is : any information an individual gives you to get a financial product or service ( for example, name, address, income, Social Security number, or other information on an application ) ; any information you get about an individual from a transaction involving your financial product ( s ) or service ( s ) ( for example, the fact that an individual is your consumer or customer, account numbers, payment history, loan or deposit balances, and credit or debit card purchases ) ; or any information you get about an individual in connection with providing a financial product or service ( for example, information from court records or from a consumer report ).