Consumer complaint received 2026-05-07 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Fees or interest — Problem with fees
Company: AMERICAN EXPRESS COMPANY
State: CA

Complaint narrative:
Subject : Formal Dispute of Improper Post-Settlement Fees, XXXX XXXX, and Collection Activity on Closed American Express Account To Whom It May Concern : I am formally disputing the entire remaining balance currently being claimed by American Express. I believe I am being subjected to unfair and deceptive billing practices involving post-settlement fees, residual interest, interest on late fees, and continued collection activity on an account that had already been settled and closed. An American Express account associated with my XXXX XXXX membership was opened. I did not personally open this account ; however, after reviewing the charges, I was able to verify that the XXXX XXXX membership charges themselves were legitimate charges associated with my XXXX account. In an effort to resolve the matter promptly and in good faith, I contacted American Express, negotiated a settlement, paid the agreed settlement amount, and requested that the account be closed. The account was used by XXXX XXXX to automatically bill recurring membership charges. The original balance on the account was approximately {$150.00}. Account history is as follows : XX/XX/XXXX : Original balance approximately {$150.00}. XX/XX/XXXX : American Express added approximately {$39.00} in late fees and interest charges. XX/XX/XXXX : An additional XXXX XXXX membership charge of approximately {$35.00} was automatically billed to the account by XXXX XXXX. American Express then continued adding late fees, interest charges, and interest on those late fees. XX/XX/XXXX : Another automatic XXXX XXXX membership charge of approximately {$35.00} was generated through XXXX XXXX. Additional late fees, interest charges, and interest on late fees continued accruing. To fully resolve the matter, I negotiated a settlement directly with American Express. On XX/XX/XXXX, I paid the agreed settlement amount of {$170.00} in full and again requested that the account be closed. The payment of {$170.00} exceeded the original balance of {$150.00} by approximately {$26.00}. The account was subsequently closed. However, despite the settlement payment and closure of the account, American Express continued assessing additional late fees, residual interest, interest charges, and interest on those fees after the account had already been settled and closed. American Express later informed me that because a XX/XX/XXXX payment due date had already been generated before the settlement payment was processed on XX/XX/XXXX, the system automatically generated additional late fees and interest charges. However, the current balance now being claimed consists solely of post-settlement late fees, residual interest, and interest on those fees that accrued between XX/XX/XXXX and XX/XX/XXXX on an account that had already been fully settled and closed. No new purchases, transactions, or authorized charges were made after the XX/XX/XXXX settlement payment. I was traveling during part of this time period and only became aware of the continuing charges after returning home and receiving an additional bill for approximately {$88.00}. Based on the statements and explanations provided, this amount appears to consist entirely of post-settlement late fees, residual interest, and interest assessed on those fees. Despite repeatedly requesting my account number, complete account records, and a full accounting of all charges, fees, and interest, I have yet to receive this information from American Express. I explained to American Express representatives that I never received the physical credit card and therefore do not have the card number available to provide. Instead of providing the requested documentation and account records, I was informed by an American Express representative that they would be happy to send me another credit card. I refused this offer because I do not want another credit card and had already requested that the account be closed. I am attaching the billing statement currently in my possession in support of this dispute. I dispute the validity of these post-settlement charges in their entirety. I did not authorize continued post-closure billing, ongoing late fees, residual interest accrual, or interest charges after the settlement payment was made and the account was closed. It is unreasonable and improper for American Express to continue generating fees and compounding interest on an account that had already been settled and closed. Continuing to assess residual interest and late fees under these circumstances appears unfair, deceptive, and inconsistent with the reasonable understanding of a consumer who negotiated and paid a settlement specifically intended to fully resolve the account. Accordingly, I demand the following : XXXX removal and reversal of all fees, residual interest, late fees, and interest charges assessed after the XX/XX/XXXX settlement payment. Written confirmation that the account is permanently closed with a XXXX balance. XXXX cessation of any additional interest accrual, late fees, or collection activity related to these disputed charges. Written confirmation that the account has been marked as formally disputed during the investigation of this matter. Removal and correction of any negative credit reporting associated with these disputed post-settlement charges. A complete accounting ledger showing every charge, fee, interest posting, adjustment, and transaction applied after XX/XX/XXXX. Confirmation that all recurring XXXX XXXX billing associated with this account has been permanently stopped and disconnected from the closed account. Please consider this a formal written dispute of the remaining balance. I request that American Express investigate this matter thoroughly and respond in writing. I am also submitting complaints regarding these billing practices to the Consumer Financial Protection Bureau ( CFPB ), California Department XXXX XXXX XXXX and XXXX ( XXXX ), Federal Trade Commission ( FTC ), California Attorney XXXX XXXX, and other applicable consumer protection agencies. Sincerely,

Company response to consumer: Closed with monetary relief