Consumer complaint received 2026-05-25 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Fees or interest — Unexpected increase in interest rate
Company: AMERICAN EXPRESS COMPANY
State: VT

Complaint narrative:
I am submitting this complaint regarding approximately {$7600.00} in interest charges applied to my American Express Business Card account following a returned payment and subsequent Penalty APR tied to specific guidance provided by an American Express representative. On XX/XX/XXXX, I mistakenly misplaced a decimal point and submitted a payment of approximately {$47000.00} when I intended to submit a payment of approximately {$4700.00}. I immediately contacted American Express to report the error and ask how best to correct the situation. During that call, I was advised by an American Express representative not to make another payment, and instead to wait for the bank to return the transaction before submitting the correct payment. I asked if there would be any penalty, and the representative stated that American Express would waive the late fee. I followed the representatives guidance exactly, the same way any customer would reasonably rely on instructions issued by an authorized company representative during a time-sensitive financial situation. The payment was returned on XX/XX/XXXX, and I then submitted the correct payment. The late fee was waived. However, what was not explained to me at the time was that waiting for the returned payment would trigger a Penalty APR of approximately 29.97 % and eliminate my grace period. At that point, I had been an American Express business customer for approximately 15 years, and my Pay-Over-Time APR had been 10.49 %. Had the representative informed me of this consequence, I would have immediately paid the balance using another available account. After reviewing my statements and account history around XX/XX/XXXX, prior to doing corporate taxes, I realized that my account had incurred significant interest charges tied to the returned XX/XX/XXXX payment and the guidance I had received from American Express regarding how to handle that situation. I immediately contacted American Express by phone and escalated the matter to a supervisor. She informed me she would investigate my complaint and later followed up with me on or about XX/XX/XXXX. This supervisor credited approximately one month of interest calculated at the Penalty APR rate to my account but declined to reverse the remaining charges. Following that conversation, I escalated my concerns to the American Express Executive Office in a written request dated XX/XX/XXXX, asking that the Penalty APR interest charges be reversed and my account restored to the position it would have been in had I been informed of the consequences at the time. I was later contacted by an Executive Office representative by phone on XX/XX/XXXX. During that subsequent recorded call with the American Express Executive Office, I was informed that : The initial representatives handling of my original call was handled in accordance with company policy ; and Representatives are not required to proactively disclose Penalty APR consequences when providing payment guidance. The American Express Executive Office representative declined to reverse the remaining charges. While I appreciated the one-month adjustment, I remain concerned that I was instructed how to proceed without being informed of the significant financial consequences that would result from following that guidance. I also believe the courtesy credit suggests that American Express recognized the circumstances warranted corrective action. My concern is not that American Express maintains a Penalty APR provision in its cardmember agreement. My concern is that I contacted American Express for guidance during a time-sensitive payment issue, followed the guidance I was given, and was not informed that doing so would result in a Penalty APR of approximately 29.97 %, loss of grace period, and approximately {$7600.00} in interest charges.

Company response to consumer: Closed with explanation