Consumer complaint received 2024-01-12
Product: Credit card — General-purpose credit card or charge card
Issue: Getting a credit card — Application denied
Company: AMERICAN EXPRESS COMPANY (VA)

I trust this message finds you well. My name is XXXX XXXX, and I am the consumer and a natural person. I recently applied for a XXXX XXXX with American Express on XX/XX/2024. Regrettably, my application was denied. 

I wish to bring to your attention that my application, like others, becomes part of the securitization process, as disclosed in your statement : " We periodically securitize Card Member loans and receivables arising from our card businesses through the transfer of those assets to securitization trusts ... '' The securitization of my application without the issuance of credit raises concerns about potential securities fraud. Unlike traditional lenders, credit card receivables financing companies, which may include your credit card payment processor, consider your business 's future credit card sales an asset, advancing capital based on projected future credit card sales. Securitizing my application without providing credit could be construed as a violation of the trust placed in the credit application process. 

Furthermore, the utilization of my social security number in the application process without receiving any benefit raises concerns of potential fraudulent activity, constituting unauthorized use as per 15 USC 1682 ( ( p ) ). This unauthorized use, coupled with the securitization process, brings into question the integrity of the credit application system. 

Because American Express was able to securitize my application and use my social security number, valuable consideration needs to be given. Without the receipt of credit on my end, valuable consideration has not been given, and American Express will need to return my credit application to ensure it is not securitized. 

In the interest of achieving a fair resolution and addressing both the potential securities fraud implications tied to my denied application and the unauthorized use of my social security number, I kindly request the reconsideration of my credit application. If American Express fails to take appropriate measures to resolve this matter and provide clarification on the securitization process, I may be compelled to pursue legal action against American Express for any damages incurred. 

I wish to highlight that the denial of my credit application may be in violation of the Equal Credit Opportunity Act ( 15 USC 1691 ( c ) ), establishing civil liability under 15 USC 1692 ( k ). The documentation of adverse action, in this case, serves as evidence of potential discrimination, holding American Express accountable for possible violations of 15 USC 1691.

According to 12 CFR 1002.7 - Rules concerning extensions of credit, a creditor is explicitly prohibited from refusing to grant an individual account to a creditworthy applicant on the basis of various factors, including sex, marital status, race, color, religion, national origin, or any other prohibited basis. 

A prohibited basis is defined as : race, color, religion, national origin, sex, marital status, or age ( provided that the applicant has the capacity to enter into a binding contract ) ; the fact that all or part of the applicant 's income derives from any public assistance program ; or the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act or any state law upon which an exemption has been granted by the Bureau. American Express 's denial may be perceived as a breach of these regulatory provisions. I believe that American Express may be in violation of 15 USC 1642, USC 1681 ( m ), and 12 CFR 1002 because my application was exercised in good faith in accordance with my rights under the Consumer Credit Protection Act, yet credit was not issued due to discrimination against a score issued by a reporting agency. 

Additionally, the use of my social security number in the application process without receiving any benefit raises concerns of potential fraudulent activity ( unauthorized user RE : 15 USC 1682 ( ( p ) ) on behalf of American Express.

I appreciate your prompt attention to this matter and look forward to a swift resolution. 

Sincerely, XXXX XXXX