Consumer complaint received 2025-02-27 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Trouble using your card — Can't use card to make purchases
Company: AMERICAN EXPRESS COMPANY
State: CA

Complaint narrative:
I am writing to file a formal complaint against American Express regarding unfair practices and potential violations of consumer protection laws in relation to my account ( XXXX ) ending in XXXX and XXXX. I have repeatedly requested that they review my account due to multiple instances where my credit limits were reduced and my cards were locked, despite my timely payments and providing required financial documentation. Below, I outline the issues Ive experienced and the reasons why I believe American Expresss actions may have violated both the Cardmember Agreement and various consumer protection laws. 

Unfair and Arbitrary Credit Limit Reductions : Despite my consistent, on-time payments and providing American Express with income verification documents as requested, American Express has repeatedly reduced my credit limits without clear justification.

One specific instance involved a {$13000.00} payment, after which American Express not only reduced the credit limit on my Platinum Card but also took action to lower the limit on another card I hold with them ( Blue Cash Everyday ). I believe this to be retaliatory or punitive in nature, especially after demonstrating my financial ability to make payments. 

Locking of Card Access : On multiple occasions, my cards were locked, restricting my ability to use them as originally intended under the terms of the Cardmember Agreement. This has caused significant inconvenience and prevented me from using the card for its intended purpose. 

Failure to Provide Adequate Explanation : American Express has not provided adequate explanation for these actions after making on-time and large payments. While they reference their right to change credit limits in the Cardmember Agreement, I believe these actions were made arbitrarily, without proper justification or communication. They did not clearly explain why these changes were made, nor were they consistent with the terms I initially agreed to. 

Potential Violations of Consumer Protection Laws : Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) : The actions of American Express may fall under unfair or deceptive practices as outlined in the Dodd-Frank Wall Street Reform and Consumer Protection Act, which prohibits financial institutions from engaging in practices that are harmful or deceptive to consumers. Reducing credit limits in this manner, especially after a large payment, without adequate justification, may be seen as arbitrary and unfair.

Breach of Contract : American Expresss actions may also constitute a breach of contract. By locking my cards and reducing my credit limits, they are effectively not honoring the terms of the agreement, which provided me access to credit under specific conditions. I have fulfilled my obligations by making timely payments, yet they have restricted my access to the credit I was promised. 

Failure to Follow Required Procedures ( Regulation Z - Truth in Lending Act ) : If American Express did not follow proper procedures in modifying my credit limit or locking my card, this could potentially violate Regulation Z under the Truth in Lending Act ( TILA ). XXXX requires that consumers receive timely and clear disclosures when there are changes to their account terms, and American Express has not provided me with sufficient explanations. 

Request for Action : I am requesting that the CFPB investigate the actions of American Express and assess whether they have violated any consumer protection laws or breached their contract with me. Specifically, I believe that : The credit limit reductions and card locks may have been made in an arbitrary or unfair manner, potentially violating the principles of fair treatment under consumer protection laws. 
I was not provided with clear and sufficient justification for these actions, which could be a violation of the Truth in Lending Act and Regulation Z.

American Expresss actions may constitute a breach of contract, as they have restricted my ability to use the card despite my adherence to the agreement. 
I am asking for a resolution in which they clear my balances on these cards. I would also like a full explanation from American Express for these actions, with documentation supporting their decisions. 

Thank you for your attention to this matter. I look forward to your assistance in resolving this issue and ensuring that American Express is held accountable for their actions.

Company response to consumer: Closed with explanation