Consumer complaint received 2018-10-15
Product: Credit card or prepaid card — General-purpose credit card or charge card
Issue: Problem when making payments — Problem during payment process
Company: AMERICAN EXPRESS COMPANY

Complaint:
I have been a customer of American Express since XXXX. In the time since, I have expanded my business with the Company, adding a " Preferred '' designation to my " XXXX '' card at {$95.00} annual fee, as well as adding an " Everyday Cash '' card and the {$550.00} per year " Platinum '' card. I have always made my payments on time, and have typically paid off large amounts - in recent months I have paid off a combined balance of around {$20000.00} - as is the case with all of my non-Amex cards. 

My complaint today centers on a recent business exchange concerning my " XXXX '' card, and secondarily, my " Platinum '' card. Since I have had my " XXXX '' card, I have maintained a {$4500.00} credit limit. I have demonstrated an exemplary history on this card, which I am aware of given my professional experience with credit. The more recent " Platinum '' card has no pre-set spending limit, yet there is a tool on the Amex website to check my spending power, indicating at any given time if a prospective purchase will be approved. Up until now - I have had this card since XXXX of this year - purchase amounts including {$15000.00} and {$25000.00} on separate occasions have been indicated as pre-approved. That brings me to my current position. My " XXXX '' card has had its credit limit lowered to {$3800.00} and not even {$5000.00} is being pre-approved on my Platinum card. I have continued to pay all of my credit cards as always and there has been no substantive or meaningful change whatsover in my credit picture. Rather, what prompted this adverse action on my Amex credit cards - and, as a result, my credit report - was due to a material misrepresentation made by the Company, which caused my minimum payment last month to be made " late ''. The background follows : For the last few years, I have redeemed my rewards points on my " XXXX '' card for cash back in the form of a statement credit. This credit posts and can be seen on the account within a few business days, and it also reduces the statement balance that must be paid by the current due date by the amount redeemed in order to avoid incurring purchase APR for the month. This fact would, understandably, lead one to believe that the cash back redeemed would reduce the minimum payment as well. Although, the minimum payment amount displayed would remain unchanged following redemption, so to would the statement balance amount displayed. And I was never charged interest following this understanding and approach month after month for years. I just would reduce the amount of my statement balance payment by whatever the cash back amount was. Pretty straightforward. Fast forward to last month. 

Unlike in most other months, my statement balance was very low : only {$85.00}, with a minimum payment of {$35.00}. However, because the previous month I had a lot of purchases, I had enough rewards points to cover most of the balance. Now, as it happens, I made many more purchases on the current cycle that followed the {$85.00} balance, but normally, I am going to bring my balance down for the statement in question by {$85.00}. No reason to pay more than what is due, right? 

First, I redeem {$67.00} in points for cash back which are applied to my balance within a few days, literally bringing the current balance down to close to {$0.00}. Then, I had {$1.00} in interest on my AMEX savings account come through so I just got rid of it by applying it towars the remaining statement balance. Might as well. That left {$15.00}. Yet, this month was unusual, as the remaining balance was now so low that it actually was below the " minimum payment '', which as I mentioned before does not change in terms of what is displayed. But normally what I have left greatly exceeds this, and I am never charged interest so it has never been a concern. Yet, I was aware of this discrepancy. 

Ever the conscientious customer, I did my due diligence calling American Express ( during first week in XXXX approx. a couple of weeks prior to my due date of XX/XX/XXXX ) to confirm my payment due. I spoke with a representative who, after doing some checking, confirmed my understanding in regard to the fact that I only owed {$15.00} for the remainder of the statement balance. I reiterated the amount and that the {$15.00} would satisfy both the statement balance with respect to interest, as well as the minimum payment. He confirmed that it would so I scheduled the payment for the due date and that was that. 

That is, until on XX/XX/XXXX, three days after my due date, when the Company declined a small purchase at a grocery store due to my having " not paid my bill. '' No call, just a decline. No matter that I had a Platinum card with no spending limit. Just decline my purchase for under {$10.00} ... totally logical. 

In any event, I called American Express immediately ( same day XX/XX/XXXX ) and spent about 45 minutes being transferred from what person to another clearly located in other countries ; hardly up to the promise of " American Express ''. Oh, forget about the {$550.00} + {$95.00} annual fees I pay. Finally, I got a hold of a manager. I explained the situation, and after much discussion, the manager stated that I still needed to pay the full {$35.00} from my bank account directly, even though that is literally the same as overpaying my balance ( suppose I hadn't made any further purchases on that current statement cycle - not that it should matter. ) I promptly paid the " remaining '' {$17.00} on the app while on the phone. The manager then provided me with a {$100.00} statement credit in acknowledgement and admission of the misrepresentation and incorrect information provided by the Company causing the inconvenience and dishonor up until that point. I inquired about any possible ramifications to my accounts with American Express or my credit report-at-large. I was assured that this would not be the case, but that she would watch my account for the next month to ensure that I suffered no adverse action of any kind. Of course, the adverse action described earlier would follow quickly thereafter, with the first notification of my credit limit reduction arriving on XX/XX/XXXX via e-mail, and further communications by phone and mail over the following week or so, as well as the self-evincing knowledge of my general downgrading with the Company via my checking of my pre-set spending limit on the website for my Platinum card. I never did hear from that manager who assured me that she would make sure that I suffered no adverse action, nor did anyone I spoke with following the XX/XX/XXXX adverse action attempt to inquire further into my situation. ( These follow-up calls happened over the next week or so following XX/XX/XXXX, roughly on XX/XX/XXXX. 

This conclusion to the sequence of events that transpired in the last 30 days between myself and American Express brings us full circle. I have so very clearly suffered numerous adverse effects from the Company 's deceptive and injurious actions. My credit report has suffered due to the reduction in my credit limit. My purchasing power has taken a tremendous hit. I was given no notice on the reduction to {$3800.00}, which was conveniently ( for American Express ) just above my then present balance at the time ( remember I pay off in full every month ) causing me to have to quickly pay {$500.00} to ensure continuity of purchase approvals. This behavior by American Express is deceptive, abusive, and downright unacceptable. I am relying upon the aid of the wonderful Consumer Financial Protection Bureau for a resolution to render my current injured state whole and to hold the injuring party fully accountable for its actions. 

Thank you

Company response to consumer: Closed with monetary relief