Consumer complaint received 2024-05-09 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Problem with customer service
Company: AMERICAN EXPRESS COMPANY
State: AZ

Complaint narrative:
To Whom It May Concern, This letter is to request reconsideration of the recent cancellation of American Express account ending in XXXX, as indicated in the letter dated XX/XX/2024. The letter stated that the account was closed due to abusive language directed towards representatives, but there appears to be a misunderstanding that needs to be clarified. 

Representatives were contacted to dispute fraudulent charges made by a contractor named XXXX XXXX, who operates under XXXX XXXX XXXX. On XX/XX/XXXX, a charge of {$2600.00} was made to the account by this contractor, which was approved and later successfully disputed. Subsequently, a second charge of {$2600.00} was taken without permission on XX/XX/XXXX and was declined by Amex for exceeding my available balance. Following this, XXXX more fraudulent charges of {$1000.00}, {$500.00}, and {$250.00} were transacted successfully. Despite the initial decline, no action was taken to protect the account, allowing the fraudulent charges to proceed until the account was maxed out and there was no more available credit. Additionally, over a dozen attempts to charge various amounts were blocked by Amex. These charges were reported in good faith, as XXXX XXXX was found to be impersonating a contractor and has a criminal record. Amex conducted a thorough investigation and reversed all the fraudulent charges. A criminal complaint has been filed against XXXX XXXX with XXXX XXXX from the Arizona Registrar of Contractors ( Case XXXX ). 

Even though I was a victim of financial fraud, the account has always been maintained in good standing and Amex bills have been paid on time. Due to XXXX XXXX XXXX ( XXXX  ) and XXXX XXXX XXXX ( XXXX ), the stress and complexity of this situation had a disproportionate impact. According to the National Institutes of Health ( NIH ), symptoms of XXXX can include irritability, agitation, and mood swings, particularly when exacerbated by stress. In the haste to report the crime, language that could be perceived as offensive may have been unintentionally used. If any communications were construed as abusive, a sincere apology is extended. It was never the intention to disrespect or harm anyone. Actions were driven by the urgency and frustration of being a victim of a significant financial crime. XXXX and XXXX are currently being managed with the help of medical professionals. 

An employee named XXXX indicated that the alleged abuse took place on a call dated XX/XX/2024, and filed a claim ( XXXX ) to allow the back team to review the call. However, no calls were made to Amex on that date. During this time, prank phone calls were being received from XXXX XXXX and the police had to be contacted regarding his behavior. It seems possible that XXXX XXXX may have contacted the bank on that date. When called back, a different time frame was given, and the representative refused to provide the date of the alleged activity. Instead of educating on what the alleged abusive behavior was to curtail it in the future or allowing reference to the specific conversation, it was stated that a subpoena would be required for that information. 

The lack of clear communication and transparency regarding the specific policy allegedly violated is concerning. While it is understood that American Express reserves the right to " cancel or suspend any feature on your Account '' at its discretion, such actions should be taken fairly and transparently. The Cardmember Agreement provided does not list abusive language as a reason for cancellation, making it difficult to understand the basis for this action. Under the Truth in Lending Act ( TILA ), specifically Regulation Z ( XXXX and XXXX ), creditors are required to clearly and conspicuously disclose terms and conditions, including any circumstances under which an account may be closed. The enforcement of an undisclosed " moral clause '' related to abusive language appears to be a violation of TILA 's requirement for transparency and clear disclosure. 

Additionally, effective XX/XX/2024, American Express is amending the Cardmember Agreement to include the ability to cancel or suspend accounts " at any time and for any reason. '' This clause was not part of the agreement at the time the account was canceled, suggesting that the current action may not be supported by the terms of the agreement in effect when the decision was made. Furthermore, as of today, XX/XX/2024, the Card Membership Agreement still lists the available limit as {$8000.00}, which contradicts the letter dated XX/XX/2024, stating the account was canceled. 

Multiple representatives stated that there was no way to appeal the decision and that it was final. This contradicts the terms outlined in the Cardmember Agreement, which specifies the method to appeal any decision. If the Cardmember Agreement includes an appeal process, American Express is required to inform cardholders of this process in its communication regarding adverse decisions. The absence of such information in the notice received could be considered a violation of TILAs requirements for clear and conspicuous disclosure and may also constitute a breach of contract and a violation of the implied covenant of good faith and fair dealing. As such, the failure to follow its own stated procedures and provide a clear appeal process means that the decision to cancel the account is procedurally incorrect and invalid, irrespective of the alleged language. 

Moreover, the Americans with Disabilities Act ( ADA ) and Section XXXX of the Rehabilitation Act require that people with XXXX be provided with reasonable accommodations and not be discriminated against. These laws mandate clear and effective communication with individuals with XXXX, ensuring that procedures are fair and transparent. As a person with XXXX and XXXX, membership in a protected class should be considered, and interactions with Amex should consider the impact of these conditions. 

The notice regarding the federal Equal Credit Opportunity Act ( ECOA ) states that creditors are prohibited from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. According to 15 U.S.C. 1691 ( a ), discrimination based on XXXX, including XXXX and XXXX, can be considered discriminatory. Penalizing for the symptoms of XXXX while exercising rights under the Consumer Credit Protection Act could be seen as discriminatory. 

Furthermore, under the Consumer Financial Protection Act ( CFPA ), financial institutions are prohibited from engaging in unfair, deceptive, or abusive acts or practices ( UDAAP ). The lack of clear communication, transparency, and the enforcement of undisclosed policies could be considered unfair and abusive under the CFPA. This situation has caused significant distress and confusion, further exacerbating medical conditions. 

Given these circumstances, the closure of the account appears retaliatory for filing legitimate disputes of fraud and criminal behavior. It is believed that the closure of the account without considering the context of XXXX and without providing an opportunity for appeal or reasonable accommodation may be inconsistent with these federal obligations. A respectful request is made for Amex to reconsider the decision to cancel the account, taking into account the medical conditions and the extraordinary stress caused by the fraudulent activities. 

In the event that the request for reconsideration is not addressed satisfactorily, a formal claim will be filed through the arbitration process as outlined in the Cardmember Agreement. This step is believed necessary to ensure fair treatment and adherence to the protections afforded by federal laws. 

The relationship with Amex is valued, and the support and services provided have always been appreciated. Please understand that behavior during this period was influenced by XXXX  conditions, and it is assured that a respectful and cooperative relationship with Amex will be maintained in the future. 

Thank you for your understanding and consideration.

Company response to consumer: Closed with explanation