Consumer complaint received 2021-12-18
Product: Credit card or prepaid card — General-purpose credit card or charge card
Issue: Advertising and marketing, including promotional offers — Confusing or misleading advertising about the credit card
Company: AMERICAN EXPRESS COMPANY

Complaint:
I am a natural person and a federally protected consumer. On XX/XX/2021, American Express denied me of my XXXX given right to extend credit. American Express failed to provide sufficient information as to why my application was denied. American Express based the decision solely on a credit report and thats a violation of federal law. Federal law does not require a consumer to apply for a charge card. In pursuant to 15 U.S.Code 1602 ( e ), the term person means a natural person or an organization. ( f ) The term credit means the right granted by a creditor to a debtor to defer payment of debt or to incur debt and defer its payment. ( g ) The term creditor refers only to a person who both ( 1 ) regularly extends, whether in connection with loans, sales of property or services, or otherwise, consumer credit which is payable by agreement in more than four installments or for which the payment of a finance charge is or may be required, and ( 2 ) is the person to whom the debt arising from the consumer credit transaction is initially payable on the face of the evidence of indebtedness or, if there is no such evidence of indebtedness, by agreement. I am the natural person who extended the credit, I am the original creditor. ( i ) The adjective consumer, used with reference to a credit transaction, characterizes the transaction as XXXX in which the party to whom credit is offered or extended is a natural person, and the money, property, or services which are the subject of the transaction are primarily for personal, family, or household purposes. ( j ) The terms open end credit plan and open end consumer credit plan mean a plan under which the creditor reasonably contemplates repeated transactions, which prescribes the terms of such transactions, and which provides for a finance charge which may be computed from time to time on the outstanding unpaid balance. 
In pursuant to 15 U.S.Code 1637, American Express did not provide the disclosures clearly and conspicuously. American Express verbally stated that they do not use a credit score or credit report when approving applications. It is a violation of federal law to deny a natural person of their XXXX granted right to obtain credit. Any application to open a credit card account for any person under an open end consumer credit plan, or a solicitation to open such an account without requiring an application, that is mailed to consumers shall disclose the following information, subject to subsection ( e ) and section 1632 ( c ) of this title. ( a ) General rules. The card issuer shall provide the disclosures required under this section on or with a solicitation or an application to open a credit or charge card account. 

Pursuant to 12 CFR 1026.60 Credit and charge card applications and solicitations. 
Definition of solicitation. For purposes of this section, the term solicitation means an offer by the card issuer to open a credit or charge card account that does not require the consumer to complete an application. A firm offer of credit as defined in section 603 ( l ) of the Fair Credit Reporting Act ( 15 U.S.C. 1681a ( l ) ) for a credit or charge card is a solicitation for purposes of this section. As a consumer I am aware that American Express has violated federal law. American Express advertisement was very misleading and they did not provide the disclosures clearly and conspicuously.

Company response to consumer: Closed with explanation