Consumer complaint received 2024-12-03 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: TX

Complaint narrative:
Dear CFPB, I am writing to formally file a complaint against American Express ( Amex ) regarding what I believe to be unreasonable and unjust annual fees applied to two credit cards that I never activated, created accounts for, or used. These fees appear to be a case of fine print abuse, disproportionately affecting new and inexperienced credit applicants like myself. Below, I outline the specifics of my case : Background : Right out of college, I applied for three Amex credit cardsthe Gold Card, the XXXX XXXX, and the XXXX XXXX Preferred Card. At the time, I had no XXXX XXXX or prior experience with credit cards and applied with the expectation that Amex would be highly selective. Surprisingly, all three applications were approved, even though I only intended to use one card. I have been using the XXXX XXXX XXXX card exclusively since then. 

The Issue : Despite never opening the envelopes containing the Gold and XXXX cards, never activating them, never creating accounts for them, or ever using them, I have been charged annual fees for both cards. Amex has compounded the issue by threatening to add interest fees on these charges.

Attempts to Resolve : I have contacted Amex customer service on three separate occasions to explain my situation, emphasizing that : I never intended to use more than one card.

I was unaware of the implications of applying for multiple cards due to my inexperience with credit.

I never activated the two disputed cards, nor did I benefit from any of their features or services.

Amexs response has been dismissive, citing that the annual fees are valid because an account was created upon application approval, regardless of activation or usage. This reasoning disregards my lack of intent to utilize the cards and the reasonable assumption that fees would not apply unless the cards were activated or used. 

My Concern : Amexs policy exploits the lack of financial knowledge among new credit applicants. Charging annual fees on unactivated cards is not only unreasonable but also seems designed to trap uninformed consumers. The practice of approving multiple applications without clear communication about immediate fee imposition upon approval appears predatory.

Request for Resolution : I am requesting the removal of all fees and associated interest charges for the two unactivated cards. Additionally, I urge the CFPB to investigate Amexs practices to ensure that other inexperienced consumers are not similarly penalized. 

Supporting Information : Account Holder Name : XXXX XXXX Relevant Cards : Amex Gold Card, Amex XXXX Card Dates of Application : [ XXXX of XXXX ] Active Card : Amex XXXX XXXX Preferred I respectfully request your assistance in resolving this issue and preventing similar predatory practices in the future. Thank you for your time and attention to this matter. Please feel free to contact me if additional information is needed. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with monetary relief