Consumer complaint received 2019-11-30
Product: Credit card or prepaid card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Problem with rewards from credit card
Company: AMERICAN EXPRESS COMPANY (NY)

On XX/XX/XXXX, while traveling in XXXX, I made a reservation on American Express Membership Rewards travel website logged into the rewards account associated with my Everyday Card to book a hotel room for one night in XXXX, XXXX. The website showed it available and every step worked exactly as expected on the last page to submit my reservation, it needed a credit card to cover the extra fees beyond the points, which I was ok to pay. I put in a credit card number ( it was similar to how one provides a card to book an airline ticket using miles ), and then hit submit. When the confirmation screen came up, it said, confirmed but had a red note that said, " Your credit card has been charged, however we were not able to process your Pay with Points request due to a system error. Please call American Express Travel at XXXX if you'd like to use your Membership Rewards points for this purchase. '' Of course, I immediately called and was reassured by the Amex associate that it could not be credited for 72 hours, but to call back then, and it would not be a problem. I called back in 72 hours, and was then told, we can not process this because we need the digits on your card ( which I did not bring to XXXX but had booked using my online account that I could log into ). This Amex associate told me enjoy my trip, call when back and they'd process the application of points as it should have done at checkout.

I called when home and spoke to three different departments, the first one transferring me to the second to complete, and second to a third that could do it, and the third department telling me, sorry it is already processed and we can not switch it over to your points on your Everyday Card. I replied that I did not authorize the full hotel charge to my Gold Card credit card as I was logged into the American Express Rewards website using my Everyday card, and I only provided the Gold Card ( and authorized it for ) the fees and taxes in excess after the XXXX points from the my Awards account were applied. No logical explanation back was given to me. I then filed a dispute with the card, and was told to call them for a resolution. I called back on XX/XX/XXXX and spent 38 minutes, being told until the last minute that he was going to apply the points to the charge with no problem. At the end he said no, sorry can not transfer the points to apply to the charge made on your Gold Card. I reiterated again that I did not charge this to my Gold Card, I had logged into the Rewards website for my Everyday Card ( which had the XXXX points ) and had only authorized my Gold Card to pay the excess fees and taxes. He said sorry, the system won't let me do it. I told him I would be filing with CFPB to warn other consumers that they may be mislead on the ability to use their points to pay for travel and the entire cost may be charged to an unrelated credit card even though you only authorized that card for minor fees and taxes. 

This charge for the hotel was unfair and not authorized, and should be corrected for many reasons. First, I was logged into the rewards account for my Everyday Card, not my Gold Card, and only authorized payment by my Gold Card for the excess fees and taxes. Second, the reservation page did not disclose anywhere that the entire reservation charge might be made in full to the credit card provided for fees/taxes if the points were not applied. Third, after confirming, the error page ( see attached screenshot ) said I could still apply points by calling AmEx. Fourth, I called immediately and was hesitant to stay at the hotel unless I could use points and offered to cancel, but was reassured by the agent over and over, that I would be able to apply the points in 72 hours. Fifth, I called American Express multiple times ( probably spending 4 hours total ) on the lines with various representatives, to be mislead that it would be ok and they could fix it, and then at the end, they would say sorry the system will not do it, we can not help you.