Consumer complaint received 2025-03-23 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Add-on products and services
Company: AMERICAN EXPRESS COMPANY
State: CA

Complaint narrative:
My Complaint I purchased an XXXX on XX/XX/XXXX on my Amex card. The phone got stolen when I was on a vacation in XXXX on XX/XX/XXXX. Since the phone was purchased in XXXX, it was covered under the purchase protection if its accidentally damaged, stolen, or lost, for up to 90 days from the date of purchase. I submitted the insurance claim in XXXX along with the police report ( copy attached ) which clearly states that its a 'theft ' at multiple places in the report. However my claim was denied with the below reason ( attached is the copy of the response about the denied claim from Amex ) : Under the What is Not Covered section of Purchase Protection it states : " ANY COVERED EVENT BASED UPON OR ARISING OUT OF I. items which are lost or irretrievable ( i.e. neither stolen or damaged ), misplaced, or Mysteriously Disappeared ... '' I then called them in XXXX and spoke to an agent who assured me that they will look into this again and respond to me. Since I got no response, I sent them an email on XX/XX/XXXX requesting an update but have not received any response I filed a complaint with BBB on XX/XX/XXXX. 

Response from Amex Amex again responded with the same explanation that the claim is denied as the item 'disappeared mysteriously ' and hence the claim was denied. Below is the response I sent to them on XX/XX/XXXX My reply to their response, to which I havent yet heard back The police report that has already been submitted explicitly classifies the incident as a theft, with multiple references confirming this classification. Below are key extracts from the report : XXXX ) Primary Offense : Theft from the person of another. 
XXXX ) Outcome/Finalization XXXX : " Unnoticed suspect, unknown, stole the victim 's mobile phone from their bag and left the scene without being witnessed. XXXX unknown Assessed Out. '' XXXX ) Investigation Summary : " Allegation description : Theft from person. Suspect unknown stole the victim 's mobile phone from the shoulder bag unnoticed. Suspect left the scene without being witnessed. '' The term " mysterious disappearance '' is often used in insurance policies to describe a situation where an item is lost under unclear or unexplained circumstances, without any evidence of theft or external involvement. This typically applies when a policyholder can not account for how or when an item went missingsuch as misplacing a wallet or leaving a phone behind in a public place. 

However, in this case, the police report explicitly classifies the incident as thefta criminal act in which an unknown suspect took the victim 's phone without consent. The description in the police report leaves no ambiguity : the phone was stolen from a secured location ( inside the victims bag ) and was taken by an unidentified individual. 

By incorrectly labeling this incident as a " mysterious disappearance, '' the insurance company is unfairly applying a technical loophole to deny a legitimate theft claim. The average policyholder may not be familiar with this distinction, making it easier for the company to misrepresent the circumstances and wrongfully reject claims. This misclassification is not only misleading but also contradicts the factual evidence provided in the police report.

I request that the claim be reassessed based on the documented facts and that Amex ceases to misuse vague technical terms to unjustly deny rightful claims. Failure to do so may necessitate further action to ensure compliance with applicable consumer protection and insurance regulations.

Company response to consumer: Closed with explanation