Consumer complaint received 2025-04-09 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem when making payments — Problem during payment process
Company: AMERICAN EXPRESS COMPANY
State: IN

Complaint narrative:
Consumer Financial Protection Bureau ( CFPB ) XXXX XXXX XXXX XXXX XXXX XXXX XXXX Date : XX/XX/XXXX Subject : Formal Complaint Regarding American Express Account # XXXX Improper Withholding, Conversion of Credited XXXX XXXX, and Securitization Misconduct Consumer Information : Name : XXXX XXXX Address : XXXX XXXX XXXX, XXXX, Indiana XXXX Email : XXXX Phone Number : XXXX FTC Report Number : XXXX Complaint Summary : I am filing this complaint against American Express regarding the unlawful delay, restriction, and misappropriation of funds tied to my credit account # XXXX, as well as concerns involving possible securitization and concealment of material financial information. 

On XX/XX/XXXX, a receivable amount was credited to the account in full a total of {$7400.00}. However, despite the credit being reflected, American Express did not allow access to those funds for a full month. The account remained disabled or inaccessible until approximately XX/XX/XXXX. 

By the time the card was finally activated, American Express had already reduced my credit limit from {$9000.00} to {$0.00}, and then later to {$1000.00}, and unlawfully deducted {$6400.00} from the credited receivable. Only {$1000.00} of the original {$7400.00} was made available effectively withholding and converting the remaining balance without any accounting, notice, or legal justification. 

This action demonstrates the intentional withholding, unauthorized adjustment, and misapplication of lawfully credited funds, and is a clear abuse of fiduciary responsibility. 

Core Issues and Violations : 1. Withholding of Credited Funds & Delayed Access : The {$7400.00} XXXX  was credited on XX/XX/XXXX but withheld for XXXX  days. 
The card was not activated or accessible until XX/XX/XXXX, after which only {$1000.00} was made available, without explanation. 
This represents a conversion of funds, a violation of trust, and a failure to honor a fully credited receivable a breach of UCC 3-603 ( b ) and 12 CFR 1026.36 ( c ) ( 1 ) concerning the application and availability of funds.

2. Unlawful Reduction of Credit Limit : The limit was reduced from {$9000.00} to {$0.00}, then to {$1000.00} after the receivable was credited. 
The change was retaliatory, lacking lawful justification, and occurred during a freeze period when the account was inaccessible violating 12 CFR 1026.55 ( b ) under Regulation Z.

There was no formal notice or explanation of these changes, violating TILA and 15 U.S.C. 1601 et seq. 

XXXX. Improper Securitization & Lack of Disclosure : XXXX XXXX  indicate the account was linked to XXXX XXXX, assigned to Series XXXX, Class XXXX, XXXX with a maturity date of XX/XX/XXXX. 
The asset appears to have been included in a credit card receivables pool by American Express Credit XXXX  XXXX XXXX XXXX XXXX XXXX. 
No Pooling and Servicing Agreement ( PSA ) or prospectus was disclosed to the consumer, which violates 17 CFR 229.1121, 15 U.S.C. 77g, and the XXXX XXXX XXXX of XXXX. 

Relief Requested : 1. Full Accounting and XXXXCompliant Reconciliation : Immediate forensic accounting and reconciliation of the credited {$7400.00} receivable and all associated ledger activity. 
Provide documentation explaining the deduction of {$6400.00} from the credited funds and why only {$1000.00} was made available after the card was activated. 
Identification of any offsets, third-party assignments, or securitization sales made using the receivable or account data.

2. Full Securitization Disclosure : Copy of the Pooling and Servicing Agreement ( PSA ) assigned to my account. 
Identification of the Trustee, Depositor, and Master Servicer involved in the securitization trust. 
Any and all SEC prospectus filings, collateral information, and bond summaries that relate to my account or its securitized counterpart.

3. Restoration and Compensation : Immediate restoration of the {$6400.00} that was removed from the credited receivable. 
Restoration of my original credit limit of {$9000.00}. 
Compensation for the month-long delay, the stress and harm caused by the restriction, and the unauthorized reduction of available funds. 

XXXX. IRS and Tax-Related Confirmation : Confirmation of whether any Form XXXX, XXXX, or other securities tax documents have been filed using my account data. 
Verification of the XXXX assignment and any secondary market trading activity involving the account. 

Applicable Violations of Law : Truth in Lending Act ( TILA ), 15 U.S.C. 1601 et seq.

Fair Credit Billing Act ( FCBA ), 15 U.S.C. 1666 Unfair, Deceptive, or Abusive Acts and Practices ( UDAAP ), 12 U.S.C. 5531 Federal Trade Commission Act, 15 U.S.C. 45 ( a ) Deceptive and unfair financial practices.

Uniform Commercial Code ( UCC ) 3-603 and 3-504 Improper handling of obligations and failure to honor receivables.

17 CFR 229.1121 Regulation AB requirements on disclosure of material information in securitization.

12 CFR 1026.55 ( b ) Unlawful reduction of credit limits without cause.

Company response to consumer: Closed with explanation