Consumer complaint received 2024-11-06 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Getting a credit card — Application denied
Company: AMERICAN EXPRESS COMPANY
State: NY

Complaint narrative:
Subject : Formal Dispute of Credit Denial and Demand for Issuance of Credit Pursuant to Equity Jurisprudence, Federal Reserve Operating Circular 6, Title 15 U.S.C., and GAAP Principles 1. Legal Basis and Context Date of Credit Extension : XX/XX/XXXX Purpose of Extension : As the original creditor/private investor, I extended credits to your institution for the applicant/principal consumer based solely on the information provided in the credit application. This action was in strict compliance with 15 U.S.C. 1681a, which mandates that creditworthiness be determined exclusively based on the application data when making a firm offer of credit. 
On XX/XX/XXXX, I received a notification from your institution that the credit application was denied based on the consumers credit report rather than the information provided in the application itself. This decision constitutes a direct violation of the Fair Credit Reporting Act ( FCRA ) and contradicts the agreed terms for evaluating credit. 
Specific Violations : 15 U.S.C. 1681n : Your institution is liable for willful noncompliance with the FCRA by failing to adhere to the statutory requirements for determining creditworthiness. 
15 U.S.C. 1681o : Additionally, your actions demonstrate negligent noncompliance, as the denial was based on improper criteria not agreed upon in the original contract. 
2. Federal Reserve Circular 6 Compliance Requirement for Immediate Transfer of Funds : According to Federal Reserve Operating Circular 6, upon approval of credit, the associated funds must be promptly transferred and made available to the applicant. The principle of settlement finality outlined in this circular ensures that once a transaction is approved, it must be completed without undue delay. 
Your refusal to disburse the credit after its approval not only breaches this principle but also undermines the trust that forms the foundation of financial transactions. 
Specific Procedural Failure : The delay in transferring the approved credit funds violates the operational standards established by the Federal Reserve, raising questions about your institutions compliance with its fiduciary duties. 
3. Misleading Advertising and Downpayment Requirements ( 15 U.S.C. 1662 ) Transparency and Consistency in Advertising : 15 U.S.C. 1662 governs the advertising and communication of downpayment requirements in credit transactions. Creditors must not advertise or imply that a specific downpayment is required unless this is a customary practice of the creditor. Misleading the applicant with inconsistent downpayment requirements violates federal regulations. 
Impact on Denial of Credit : If your institution denied credit based on a downpayment requirement that was not clearly advertised or is not a usual practice, this denial is inconsistent with federal regulations and could be challenged as misleading and unlawful. 
4. Application of Generally Accepted Accounting Principles ( GAAP ) Fair Presentation and Consistency : GAAP requires that all financial transactions, including the issuance and management of credit, be recorded and reported accurately and transparently. The arbitrary denial of credit without proper justification is inconsistent with GAAP principles of fair presentation and transparency. 
Discrepancies in Credit Issuance : Any inconsistencies in how credit applications are assessed or how decisions are communicated must be documented and justified under GAAP. Your failure to do so indicates a breach of standard accounting practices, further supporting the claim of negligence. 
5. Responsibility to Create a Credit Plan Based on Ability to Pay Equity Jurisprudence : In line with established principles of equity, the extension of credit should not be denied outright if the applicant demonstrates an ability to repay. Instead, a credit plan should be formulated based on the applicants financial situation. Denying credit without offering a structured repayment plan is not only inequitable but also contrary to the spirit of fair financial practices. 
Legal Precedent : Creditors are required to assess an applicants ability to repay and offer a credit arrangement that reflects their financial capacity. Failure to provide such an arrangement, especially when the applicant has demonstrated the ability to meet their obligations, constitutes a breach of fiduciary duty and equitable principles. 
6. Equitable Relief and Restoration of Trust Demand for Immediate Action : Reconsideration and Issuance of Credit : I request a thorough review of the decision to deny credit, ensuring compliance with all relevant laws, regulations, and accounting principles. If my application meets the standard criteria for creditworthiness, the credit must be extended without further delay, and a suitable credit plan should be offered. 
Restoration of Trust : Your institution must take immediate steps to restore trust in this financial transaction by fully complying with federal regulations, including the proper issuance of credit as dictated by Federal Reserve Circular 6 and Title 15 U.S.C. 
Compensation for Damages : I seek compensation for the damages caused by your negligent actions, totaling {$100000.00}, in addition to {$10000.00} for the time, labor, and resources expended in addressing this adverse action. 
7. Notice of Further Action Failure to address this issue in a fair, equitable, and lawful manner may compel me to seek further remedies, including filing a complaint with the Consumer Financial Protection Bureau ( CFPB ), pursuing legal action under Title 15 U.S.C., and seeking injunctive relief to enforce compliance with my rights under federal law. 

15 ucs 1611 Expected Response : I expect to receive your response within 14 days from the date of this letter. Please address your response to the contact details provided above.

Company response to consumer: Closed with explanation