Consumer complaint received 2024-01-22 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Other problem
Company: AMERICAN EXPRESS COMPANY
State: GA

Complaint narrative:
Subject : Notice of Assessment of Collateral Security and Breach of Contract Accounts Ending In : XXXX ; XXXX ; XXXX This purpose is to redress an infringement of rights. Violations that are prohibited by law from engaging in knowingly and recklessly practices that those regulatory authorities deemed unsafe and unsound, which have led to the breach of fiduciary duties. 
According to American Expresss prospectus and 10Q forms : Securities will be AMEX obligations. Monies will be held in trust for payments. 
Each security will bear interest from its date of issue until paid, until the principal of the security is paid, or security made available for payment. 
Interest will be paid upon redemption or repayment to the person to whom is the principal and will credit the relevant account. 
Deposits will be deemed to have been paid and discharged the entire indebtedness on the securities. 
Securities are under a book entry system. Holders of the applicable securities would be able to look only to the trust fund for payments of principal and interest on debt securities.

Reling on procedures of the depository, whom you hold your beneficial interest to exercise any rights of a holder under the indenture.

The depository will act upon the instructions or be authorized to take any action that is entitled to take.

Receivables and card member loans are securitized, and assets will transfer to securitized trust.

Securities collateralized are issued and assets are transferred to investors.

After reviewing 10K forms, AMEX has failed to meet requirements and may need to be barred from engaging in financial activities like acquisition investments. American Express National Bank ( AMNB ) are subject to limitations, collateral requirements, and other restrictions, imposed by statues and regulations. Securitization of card member loans and receivables is accomplished through the transfer of those assets to a trust which in turn issues securities collateral by the transfer act of assets to investors.

As an issue depository institution AENB borrowed from the Federal Reserve Bank the amount of qualifying collateral. The Federal Reserve has indicated that both credit and charge card receivables are a form of qualifying collateral. Assets will be considered qualifying collateral.

Expressing attention to the fact that there have been breaches in Tiers 1, 2, and 3 which indicate a pattern of misconduct. This is causing the principals account to be negatively impacted and results in benefits to such parties. Describing this as violating regulations issued pursuant to the Federal Reserve Act. This pattern of behavior is particularly troubling because these companies are participating in, counseling, aiding, and abetting violations. Which goes against the principles of trust and integrity that isnt expected from a reputable company. 
Given the circumstances and assessing this situation under Tier 3. This tier addresses the severity as the violation, practice, and breach that continues. To further illustrate the seriousness of these matters, a calculated fee schedule of {>= $1,000,000} per day, backdated to XX/XX/2023, when security collateral was accompanied with a tender. This amount reflects the significant time, financial loss, and stress that has been endured throughout this process of performance. 
Expressing dismay at the denial of notes for collateral security, as it deviates from transferring principals balance to principals account. The decision appears to be false and misleading, and left questioning the factors that led to this outcome.

In assessing the situation and considering all violations in accordance with Section 29 ( e ) of the Federal Reserve Act. This section stipulates that in the case of any penalty imposed by American Express National Bank it must be assessed and collected by the Comptroller of the Currency ( OCC ) and Consumer Financial Protection Bureau.

American Express National Bank is subject to be supervised and regulated by the Federal Reserve System and is subject to the federal reserves requirements including regulatory and leverage requirements by the OCC. Failure to meet requirements can initiate certain mandatory and additional discretionary actions. It is a policy of the Federal Reserve that bank holding companies should pay dividends. Trusting that your company will take these considerations seriously and work towards resolution. 
Anticipating your prompt attention to these matters. Thank you for your attention to this matter. 
Sincerely, By : XXXX XXXX XXXX XXXX AGENT FOR : XXXX XXXX \ PRINCIPAL Without recourse XXXX

Company response to consumer: Closed with explanation