Consumer complaint received 2021-05-22
Product: Credit card or prepaid card — General-purpose credit card or charge card
Issue: Fees or interest — Problem with fees
Company: AMERICAN EXPRESS COMPANY (CA)

I have had a XXXX from American Express card for many years and have not made any new charges to my account since XX/XX/XXXX. It has essentially been dormant. Unfortunately, I had one remaining annual subscription tied to this card unbeknown to me. A {$30.00} charge from Ring for annual subscription was charged on XX/XX/XXXX. Because I had not used this card in an entire year, I was unaware there was a balance due. Fast forward to XX/XX/XXXX when I discovered a balance of {$140.00} on my account for this {$30.00} charge. I was floored to learn I had {$110.00} in fees on a {$30.00} charge. This balance resulted from the {$30.00} subscription charge XXXX XXXX bill ), plus {$29.00} late fee XXXX XXXX bill ), plus {$40.00} late fee XXXX XXXX bill ), plus {$40.00} late fee XXXX XXXX bill ) and the remainder being interest charged. I never did receive a bill for XXXX or XXXX and did not see my XXXX bill until XX/XX/XXXX when I discovered I had missed the most recent payment due date by 2 days. 

Granted I was not monitoring my account more closely and Amex agreed to waive one month of late fees or {$40.00} when I contacted them. But I am still left with {$69.00} in late fees for a {$30.00} bill which feels very unfair and unreasonable. I don't know how it's possible that credit card companies can be allowed to assess such high fees on late payments, particularly during this time when people are struggling financially, emotionally and physically. My mother has been in and out of the hospital twice since XX/XX/XXXX and some grace would have been appreciated but these companies are solely focused on profits. 

I have already paid my bill with the 2 excessive late fees but it angers me that credit card companies routinely assess these outrageous fees that exceed the original amount charged. My first late fee amounts to 97 % of my charge and the second late fee is 133 %. I had to pay nearly 2 1/2 times my initial charge amount in late fees to bring myself current, ( not including the interest ) which is ludicrous. 

I am not against the assessment of a late fee as I know I hold responsibility as well. But these types of charges that show up resulting from a subscription need to be looked at as well. There have been no other charges on my card so why would I think to look at my statement? I do hope that the practice of assessing a late fee, regardless of the amount owed, can be reviewed and reformed. It truly hurts the consumer when the amount of the late fees are so unreasonable when compared to the actual dollar amount owed. And I don't understand why subsequent late fees are even higher than the initial one, particularly when there are no new charges ... other than late fees on top of late fees. 

I'm aware it's legal for credit card companies to assess these fees and that I was informed of such fees in disclosure language. I don't even expect my outcome to be any different than what it is. I just feel the system as it stands no longer reflects how many bills are automatically charged to us, making it convenient for business but can put the consumer in a precarious position and it all needs to be reviewed for fairness to the consumer.