Consumer complaint received 2025-03-10 00:00:00
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: AMERICAN EXPRESS COMPANY
State: GA

Complaint narrative:
I am submitting a formal complaint against American Express ( AMEX ) and their third-party debt collector regarding the mishandling of my closed credit card account, improper credit reporting practices, and their refusal to provide a valid Pay-for-Delete Agreement or written policy that prohibits such agreements. I am requesting immediate removal of this account from my credit report due to multiple federal law violations.

1. Violation of the Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681c ( a ) ( 4 ) Continuing to Report Late Payments After Account Closure According to 15 U.S.C. 1681c ( a ) ( 4 ) of the Fair Credit Reporting Act ( FCRA ), creditors are prohibited from continuing to report late payments after the account has been transferred or closed.

My account with American Express was closed and transferred to collections, yet AMEX continued to report late payments to the credit bureaus after the account was closed. This is a direct violation of the Fair Credit Reporting Act. 
By law, once the account is closed and transferred to a third-party collector, the creditor must cease reporting negative marks beyond the closure date. 
Despite repeated requests to have the negative late payments removed, American Express has refused to comply, resulting in ongoing damage to my credit.

2. Violation of the Fair Debt Collection Practices Act ( FDCPA ) 15 U.S.C. 1692g ( a ) Failure to Validate Debt Upon Request Under 15 U.S.C. 1692g ( a ) of the Fair Debt Collection Practices Act ( FDCPA ), a consumer has the legal right to request validation of a debt in writing from the original creditor or the third-party debt collector. 

On XX/XX/year>, I contacted AMEX and spoke with a representative named XXXX from their Credit Bureau Unit. I formally requested written validation of my debt, including the original signed credit agreement, the complete transaction history, and the official closure date of my account. 
XXXX failed to provide any written validation of my debt and insisted that the debt was valid based on AMEX 's " internal records, '' which does not constitute a legally valid debt validation. 
Per federal law, AMEX was required to cease all collections and reporting until they could provide proper written validation. They have failed to do so, violating my rights under the FDCPA.

3. Violation of the Consumer Financial Protection Act ( CFPA ) 12 U.S.C. 5531 ( c ) Engaging in Deceptive Practices by Refusing Pay-for-Delete Without Written Policy While contacting American Express for resolution , I was misled by multiple representatives and transferred back and forth between different numbers, with each representative giving conflicting instructions. 

Initially, AMEX 's representatives instructed me to contact American Express directly. However, I was told by AMEX that they did not have my account on file and was directed to another number. After reaching the second number, I was told the same thing and had to contact another number again. This back-and-forth wasted considerable time and resources, with no clear resolution or guidance. 
Eventually, after complaining about the constant back-and-forth, XXXX was placed on the phone. She could not provide me with any written documentation regarding the Pay-for-Delete policy or clarify whether such an agreement was available at all. 
During the call with XXXX, I explained that I was willing to negotiate a settlement for a lower amount to close this debt. However, XXXX was unwilling to offer a reasonable compromise or even discuss the possibility of negotiating a settlement price. 
Instead, XXXX claimed that AMEX does not engage in Pay-for-Delete agreements, yet failed to provide any written policy to substantiate that claim, violating my rights under 12 U.S.C. 5531 ( c ). AMEXs refusal to consider the Pay-for-Delete option is both misleading and deceptive when no formal policy exists prohibiting such a practice.

4. Violation of the Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681i ( a ) ( 7 ) Failure to Provide Policy Documentation When Requested Per 15 U.S.C. 1681i ( a ) ( 7 ) of the FCRA, when a consumer requests clarification or a written policy regarding their account, the creditor must provide it. 

I specifically asked AMEX to provide : The formal written policy prohibiting Pay-for-Deletes. 
The training manual or internal documentation that supports their refusal to do Pay-for-Deletes. 
AMEX failed to provide either document.

This refusal constitutes a legal violation of my right to request information under the FCRA.

5. Misrepresentation Under FDCPA 15 U.S.C. 1692e ( 8 ) Failure to Report Accurate Information to Credit Bureaus Under 15 U.S.C. 1692e ( 8 ) of the FDCPA, a debt collector ( or creditor ) must report accurate information to the credit bureaus.

Since the account was closed and transferred, AMEX is legally obligated to report it as Closed Transferred with a {$0.00} balance.

However, they continue to report late payments, negatively impacting my credit.

This act of willfully reporting inaccurate information is a clear violation of federal law.

6. Immediate Action Required Urgent Request for Resolution This matter requires immediate attention due to the ongoing damage to my credit from AMEXs unlawful reporting practices. I expect a prompt response with

in the next 10 business days and request that you take immediate action to correct the inaccurate information and remove the collection account from my credit report. AMEX has a history of delays and adding late payments after the typical 30-day dispute period. This tactic must cease immediately, and I am requesting a resolution before further damage is done to my credit score. If no action is taken within 10 business days, I will be forced to pursue legal action through a formal lawsuit and report further violations to the CFPB and the FTC. 7. Resolution Requested Given that American Express has committed multiple federal law violations, I am formally requesting : Immediate removal of the account f rom my credit report. Immediate remov
al of all late payments reported after the closure date.

A formal investigation by the CFPB into AMEXs refusal to provide written policy documentation. 
Full deletion of the collection account under a Pay-for-Delete Agreement or confirmation of their refusal via a valid written policy.

Cease all credit reporting under this account since they have violated multiple provisions of the FCRA, FDCPA, and CFPA.

8. Legal Notice of Intent I am placing American Express and the third-party debt collector on notice that if this account is not immediately removed from my credit report, I will pursue : Formal legal action under the Fair Credit Reporting Act for failure to provide a valid written policy. 
Formal legal action under the Fair Debt Collection Practices Act for failure to validate the debt. 
A CFPB investigation into deceptive practices regarding their refusal of Pay-for-Delete Agreements without policy documentation.

This matter has dragged on far too long. I have provided ample opportunity for AMEX to resolve this amicably. However, their refusal to cooperate, provide policy documentation, or validate my debt constitutes multiple federal violations.

I respectfully request the immediate removal of this account from my credit report or a legally valid Pay-for-Delete Agreement. If no action is taken within 10 business days, I will escalate this complaint to legal counsel for further action.

Company response to consumer: Closed with explanation