Consumer complaint received 2024-02-12 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: IL

Complaint narrative:
On XX/XX/, I applied for an unlimited open ended credit plan with American Express Gold Card. I applied for this plan because it is well documented that when a consumer applies to give an extension of credit using their social security number/card, per 15 USC 1602 ( l ) The term credit card means any card, plate, coupon book or other credit device existing for the purpose of obtaining money, property, labor, or services on credit. The extension of credit can not be denied. ( g ) The term creditor refers only to a person who both ( 1 ) regularly extends, whether in connection with loans, sales of property or services, or otherwise, consumer credit which is payable by agreement in more than four installments or for which the payment of a finance charge is or may be required, and ( 2 ) is the person to whom the debt arising from the consumer credit transaction is initially payable on the face of the evidence of indebtedness or, if there is no such evidence of indebtedness, by agreement. Notwithstanding the preceding sentence, in the case of an open-end credit plan involving a credit card, the card issuer and any person who honors the credit card and offers a discount which is a finance charge are creditors. For the purpose of the requirements imposed under part D of this subchapter and sections 1637 ( a ) ( 5 ), 1637 ( a ) ( 6 ), 1637 ( a ) ( 7 ), 1637 ( b ) ( 1 ), 1637 ( b ) ( 2 ), 1637 ( b ) ( 3 ), 1637 ( b ) ( 8 ), and 1637 ( b ) ( 10 ) of this title, the term creditor shall also include card issuers whether or not the amount due is payable by agreement in more than four installments or the payment of a finance charge is or may be required, and the Bureau shall, by regulation, apply these requirements to such card issuers, to the extent appropriate, even though the requirements are by their terms applicable only to creditors offering open-end credit plans. The application was denied by a computer generated algorithm based on a FICO score and the determination was not made by a human underwriter. Denial of credit is a violation of the Equal Credit Opportunity Act because when I gave my Social Security information the application should have been approved according to law. AMERICAN EXPRESS is in violation of 15 U.S. Code 1642, U.S.C 1681 ( m ) and 12 CFR 1002 because I, XXXX XXXX, the consumer, made an application in good faith, but credit was not issued. Furthermore, because my social security number ( credit card ) was used and I received NO benefit. This is proof of fraudulent activity ( unauthorized use of credit card ) on behalf of AMERICAN EXPRESS. If AMERICAN EXPRESS fails to make any reasonable procedures to resolve this matter and compensate me for the use of my credit card ( Social Security Number ) I will indeed make AMERICAN EXPRESS criminally and civilly liable for all actual damages pursuant to 15 USC 1681 ( n ) and 15 USC 1681 ( o ). I will also follow up with an invoice for said violations ( { { {$1000.00} } } per violation ). 


Dear American Express, To my surprise, I received a notice indicating that my application was denied. Upon discovering this information, I took the time to review AMERICAN EXPRESS 's Indenture agreement and found myself feeling overwhelmed by the complexity of the situation. Upon careful examination of the Indenture agreement, I noted the statement " The Security Interest in the Collateral is granted to secure the Notes. '' The definition of Collateral includes " All accounts, instruments, documents, etc., '' and it dawned on me that my application, bearing my signature, constitutes the Collateral. Further, the Note is represented by my XXXX, effectively transforming it into a Promissory note ( Security ). This realization leads me to believe that I hold an account/credit with American Express XXXX XXXX After researching the most recent XXXX XXXX, I came across the description of Collateral as " proof of receivables generated by designated consumer American Express credit card accounts and pay-over-time revolving credit card accounts. ''They have an intricate transaction structure that sheds light on how my Application ( Note, Collateral ) was traded. Pursuant to the ELECTRONIC TRANSFER ACT, specifically the " Electronic Signatures in Global and National Commerce Act ( the XXXX XXXX ), 15 USC 7001 et seq., '' which became effective on XX/XX/2024, I understand that electronic documents and signatures carry the same validity as paper documents and handwritten signatures. Referring to 15 U.S. Code 7001- General Rule of XXXX : A signature, contract, or other record relating to such a transaction may not be denied legal effect, validity, or enforceability solely because it is in electronic form. 2. A contract relating to such a transaction may not be denied legal effect, validity, or enforceability solely because an electronic signature and electronic record were used in its formation. Given this information, I am respectfully and urgently requesting that American Express promptly review and approve my credit card account under XXXX XXXX ( Ref : XXXX ). Denying access to my securities, as outlined in the Collateral, could be perceived as securities fraud. In the event that my application continues to be denied, I kindly request immediate revocation and clear proof of this retraction. Failure to address this matter satisfactorily will leave me with no choice but to report American Express and any related holders to the ( SEC ) XXXX Securities and Exchange Commission and ( FRNA ). Furthermore, I came across a crucial detail in your PROSPECTUS on page XXXX under the section " PLAN OF DISTRIBUTION. '' It outlines the various methods by which securities may be sold, including through underwriters or dealers, directly to purchasers, through agents, or through a combination of these methods. The prospectus supplement will provide specific details, such as the names of underwriters or agents, purchase price, underwriting discounts, commissions, initial public offering price, discounts or concessions to dealers, and securities exchanges where the securities may be listed. I kindly request that this application also be considered for review and approval. I trust you will give prompt attention to this matter, and I am hopeful for a swift resolution. Sincerely,

Company response to consumer: Closed with explanation