Consumer complaint received 2025-03-18 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Other problem
Company: AMERICAN EXPRESS COMPANY
State: FL

Complaint narrative:
XXXX XXXX. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Request for Clarification and Reclassification of Account CFPB Complaint Pending To Whom It May Concern, I am writing to formally request a detailed review and correction of the classification and processing of my American Express XXXX XXXX account ( Account Number : XXXX XXXX XXXX ). Based on my review of the agreement and the structure of this transaction, I have concerns regarding its classification and the legal basis for its enforcement. Accordingly, I request a full and transparent response to the following matters. 
1. Classification of Transaction : Personal vs. Commercial This transaction was intended for personal use and not for any commercial or business purpose. Given this, can you confirm in writing that it was processed as a personal-use, non-commercial credit transaction? If the account was in any way misclassified, I request that it be corrected to ensure that all applicable consumer protections are properly applied.

2. Potential Misclassification as an Accommodation Party It appears that I may have been classified as an accommodation party, which would imply that this transaction was structured primarily for the benefit of another party. Can you provide documentation showing how I was categorized and the basis for that classification? If I was misclassified, I request that it be corrected immediately.

3. Determination of True Creditor vs. Intermediary Status A true creditor extends their own capital at risk, whereas a facilitator merely arranges transactions without actually lending their own funds. Can you clarify whether American Express acted as a true lender providing consideration, or as an intermediary in this transaction? Additionally, I request supporting documentation reflecting the original funding source for the credit extended.

4. Legal Basis for Enforcement Under the FTC Holder Rule Under 16 C.F.R. 433.2 ( FTC Holder Rule ), no entity can be deemed a true holder in due course of consumer paper. On what legal basis does American Express assert the right to enforce this agreement as if it were a holder in due course? If American Express is claiming holder-in-due-course status, I request a detailed legal explanation, including any case law or regulatory guidance supporting this position.

5. Principal-Agent Relationship and Duty of Loyalty If I am considered the principal in this transaction, American Express , as an agent, has a duty to act in my best interest. Why does the agreement appear structured to benefit American Express at my expense, rather than being a balanced agreement protecting my interests as the principal? I request clarification on how American Express ensures fairness in structuring such agreements with consumers.

6. Full Disclosure of Contract Terms and Potential Reclassification Transparency in financial agreements is crucial, yet I was not provided with full disclosure detailing all material aspects of this contract, including any provisions allowing for reclassification of my role. Can you provide a breakdown of the agreement, including any clauses that may have altered my consumer rights?

7. Interpretation of Ambiguities in Favor of the Consumer Under established contract law principles, any ambiguities in a financial agreement should be interpreted in favor of the consumer. Do you acknowledge that any unclear terms in this agreement should be resolved in my favor? If American Express takes a different position, I request an explanation.

8. Full Accounting Ledger for the Transaction Accounting records should reflect the true nature of a financial transaction. Can you provide a full accounting ledger showing the original source of funds that were extended in this transaction? Specifically, I request a breakdown of : The initial funding source for the credit extended. 
Any internal ledger entries that document how this transaction was processed. 
The method by which funds were allocated and disbursed. 
Any relevant records that confirm American Expresss role as the originating creditor in this transaction.

9. Corrective Measures for Potential Misclassification or Omitted Terms If it is determined that this agreement was misclassified or that any material terms were omitted, what corrective actions will American Express take to rectify these issues? I request that all necessary adjustments be made to ensure this transaction is properly structured, compliant with consumer protection laws, and accurately reflects my original intent.

10. Agreement Modification to Reflect Intended Personal Use Since it is clear that this transaction was intended for personal use, I request that American Express modify the agreement to explicitly reflect this and correct any mischaracterizations. If American Express refuses, I request the specific legal rationale for why such a correction can not be made.

Request for Response Please respond with the requested documentation and clarifications as soon as possible. You may reach me at the contact information provided above. 
Sincerely, XXXX XXXX. XXXX

Company response to consumer: Closed with explanation