Consumer complaint received 2025-01-25 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Fees or interest — Unexpected increase in interest rate
Company: AMERICAN EXPRESS COMPANY
State: CA

Complaint narrative:
Statement of Facts ( sworn affidavit to follow ) XXXX. ) On XX/XX/XXXX, the XXXX  payment was set up and processed to pay the XXXX XXXX XXXX under business XXXX XXXX for {$100.00}. This payment was unexpectedly returned despite sufficient funds being available to clear the payment in the checking account. 

XXXX. ) An inquiry was placed to XXXX XXXX XXXX due to confusion as to why the payment was returned, and it was explained by the XXXX XXXX that payments to business cards can not be made from personal bank accounts. 
Concern : Amex failed to clearly communicate this critical information when the account was initially set up. Their system allowed the use of personal accounts for business payments, which contributed to this error. This suggests a breakdown in their processes for managing customer transactions, in violation of the Truth in Lending Act ( TILA ) for failing to provide clear terms and protections for customers. 

XXXX. ) After receiving this information, a replacement payment was successfully made from a business checking account that matched the same business name as the credit card. 

XXXX. ) Despite deleting the personal checking account from the stored payment methods, the same error occurred on XX/XX/XXXX for a payment of {$1000.00}. This error was realized the same day, and a replacement payment was submitted to the correct business checking account. After speaking with the XXXX XXXX, we were advised that there was no way to cancel the erroneous payment, even on the same day. 
Concern : XXXX refusal to cancel the erroneous payment suggests their process for addressing payment mistakes is inadequate and does not allow for timely resolution. This resulted in unnecessary complications and confusion, which could constitute a failure to act in good faith under the XXXX XXXX XXXX XXXX Acts or Practices ( XXXX ) regulations. 

XXXX. ) We were already concerned that this might affect the promotional XXXX. However, after the XXXX  error in XXXX, a representative assured us there was nothing to worry about, and that the promotional XXXX would not be affected. 
Concern : The representatives assurance created a clear understanding between both parties that the promotional XXXX would not be impacted. XXXX subsequent action of voiding the promotional XXXX undermines this understanding and creates significant doubt about their adherence to agreed terms, potentially breaching the XXXX XXXX and XXXX XXXX  XXXX implied in all contracts. 

XXXX. ) Payment mistakes were rectified after the XXXX payment by deleting the invalid personal checking account from the stored bank accounts. 

XXXX. ) No further issues were suspected with the account until reviewing line items in XX/XX/XXXX. 

XXXX. ) It was discovered, to our disbelief, that, contrary to what had been previously explained, the account had in fact voided the promotional XXXX. 
Concern : This cancellation of the promotional XXXX, despite prior assurances, raises serious concerns. It calls into question whether Amex acted in good faith and adhered to the terms of the account, violating contract law and potentially engaging in unconscionable conduct. 

XXXX. ) This was inexplicable, as upon further investigation, XXXX system allows for online prompts enabling payments to be entered from both personal and business checking accounts. 
Concern : XXXX system is clearly flawed, as it allowed payments from personal accounts when it should have been blocked. This points to potential negligence in the system 's design, which allowed these issues to occur and may violate consumer protection standards under the Fair Credit Billing Act ( FCBA ). 

XXXX. ) The entire situation was explained to Amex representatives on XX/XX/XXXX, detailing the accidental payments from personal bank accounts. These payments were immediately rectified on the same dayyet Amex changed their story. 
Concern : XXXX shifting explanations and refusal to take responsibility for the errors creates doubt about their commitment to resolving the issue transparently. This pattern of conflicting statements raises concerns about their handling of customer matters, potentially violating consumer protection laws. 

XXXX. ) Now, Amex claims the issue was not due to payments from a personal checking account, but due to entering an invalid checking account number. 
Concern : This new explanation is not consistent with the safeguards in XXXX system, which prevent such errors from being made easily. This suggests a misleading narrative intended to avoid accountability for the original mistake. 

XXXX. ) They claim the routing number was entered twice, using the routing number as the checking account number. 
Concern : This claim is incorrect, as XXXX system requires manual entry and does not allow for easy duplication of the routing number. The claim appears to be an attempt to deflect blame from the actual issue. 

XXXX. ) There is no way this error was not noticed upon submitting the payment incorrectly. Furthermore, the first representative who inquired about the unsuccessful payment clearly explained it was returned because it was paid from a personal checking account. If there had been a routing number issue, they would have identified this error at that time. 
Concern : XXXX failure to detect and address the error in real-time shows a lack of oversight and suggests a failure to handle the situation properly from the start. 

XXXX. ) Due to the significant misinformation provided by Amex and the fact that Amex stands to gain from this situation, coupled with their continual shifting of their story and refusal to acknowledge whatever caused this issue, it has been determined beyond a reasonable doubt that this was deliberate manipulation on the part of Amex, with the intent to cancel the promotional interest rate from the outset. 
Concern : XXXX actions, including the cancellation of the promotional XXXX  despite prior assurances, suggest a deliberate attempt to manipulate the situation for their own benefit, which could be considered fraudulent and in violation of consumer trust laws. 

XXXX. ) No Amex representatives will fully acknowledge the errors, misinformation, payment manipulation, or the accident itself. Furthermore, they will not reverse the actions that voided the promotional XXXX, which was canceled in the first month of the account, only to be discovered on XX/XX/XXXX, XXXX months after the account was opened. As a result, we have incurred over {$620.00} in interest charges. 
Concern : XXXX refusal to correct the voided XXXX  and their lack of acknowledgment of the mistakes suggests an unwillingness to make things right. The {$620.00} in unnecessary interest charges is a direct result of their actions, and they have not made reasonable efforts to resolve the situation. 

XXXX. ) We are filing a claim against Amex on XX/XX/XXXX, seeking to resolve this matter and hold Amex accountable for their misconduct. This situation has irreparably destroyed our business relationship with Amex, permanently damaging the trust and goodwill we once had in their services. 
Concern : This situation has caused lasting damage to the relationship between Amex and the business. The failure to resolve this matter fairly and swiftly has led to the irreparable loss of trust in XXXX business practices. This breach of trust is a serious violation of the expectations of fair business conduct. 

XXXX. ) As a result of these actions, we are seeking full compensation for damages under the Fair Credit Billing Act ( FCBA ), Truth in Lending Act ( TILA ), and Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ). These damages include but are not limited to : The over {$620.00} in interest charges incurred due to the voiding of the promotional XXXX, Damage to personal credit as a result of XXXX  mishandling of the account, which will result in negative credit reporting and negatively impact our ability to obtain future credit or loansXXXX XXXX XXXX caused by the XXXX  and XXXX  of dealing with this ongoing issue, Loss of business opportunities as the business account is no longer reliable for future financial transactions, and Ongoing financial penalties and fees, including late fees and penalties that continue to accrue as a result of XXXX failure to rectify the issue. 
We demand an immediate reversal of the interest charges, rectification of the promotional XXXX voidance, and restitution for the harm caused by XXXX conduct. Amex has until XX/XX/XXXX, to resolve this matter. If no resolution is reached by this date, we will pursue further action, including filing a lawsuit and seeking to recover damages for financial loss, emotional distress, and legal fees, in addition to the interest charges and penalties. 

Conclusion : XXXX actionsparticularly their cancellation of the promotional XXXX, misleading and inconsistent explanations, and failure to resolve the issue transparentlyhave caused significant financial harm, leading to over {$620.00} in interest charges and the irreparable destruction of the business relationship. We are filing a claim on XX/XX/XXXX, and we expect Amex to take immediate steps to resolve this matter. Amex has until XX/XX/XXXX, to resolve the issue before further action is taken. If no resolution is achieved by that date, we will pursue legal action to recover damages and hold Amex accountable for their conduct.

Company response to consumer: Closed with monetary relief