Consumer complaint received 2025-04-22 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Problem with customer service
Company: AMERICAN EXPRESS COMPANY
State: NY

Complaint narrative:
I have disputes with American Express which were closed multiple times, regarding a fraudulent merchant who has scammed me and hundreds of others. Despite providing clear and compelling evidenceincluding screenshots of the companys CEO admitting to misusing funds to defraud customersAmerican Express has failed to properly investigate the matter. Instead, they continue to accept the merchants claim that they are merely a payment processor, despite my documentation proving the contrary. 

It appears that American Express is siding with the merchant, possibly due to the processing fees they receive by continuing to allow transactions through this fraudulent business. They have been provided with ample evidence supporting the merchants deceptive activity and still have not taken appropriate action. 

American Express had set my credit limit at $ XXXXyet allowed charges far exceeding that limit, totaling over {$9000.00} in a single day. This action violates consumer protection standards and could be considered irresponsible and potentially unlawful credit extension. Under the Credit CARD Act of XXXX, specifically 15 U.S. Code 1666i2, card issuers are required to obtain a consumers consent before approving charges that exceed a credit limit if over-limit fees or interest charges might apply. This level of credit extension ( XXXX times the limit ) without reassessment or my explicit agreement poses serious risk to consumers and goes against the spirit of safe lending practices. 

If American Express extended credit in excess of the agreed limit without proper underwriting or consumer consent, they may also be in violation of Regulation Z under the Truth in Lending Act ( TILA ), which outlines the requirements for clear credit terms and fair lending behavior. 

I was not informed or warned that American Express would approve amounts that exceed my credit limit by nearly 900 %. 

This practice raises serious concerns about compliance with the Truth in Lending Act ( TILA ) and the Credit CARD Act of XXXX, which prohibit creditors from approving over-limit charges unless the customer has explicitly opted in. I have no recollection of opting into any such program, nor was I notified at any point that these charges would be allowed despite the credit limit in place. 

Even if such approvals were permitted under internal policy, I believe it represents an example of negligent credit extension and poses a potential violation of consumer protection laws, including those enforced by the Consumer Financial Protection Bureau ( CFPB ) and standards prohibiting Unfair, Deceptive, or Abusive Acts or Practices ( UDAAPs ). 

Accordingly, I request the following : Written confirmation of whether I have ever opted into an over-limit program. 
An explanation of the policies that allowed these charges to exceed my credit limit without notice or denial. 
Assurance that my credit report and standing will not be negatively impacted as a result of this overextension. 

Furthermore, American Express has mishandled the dispute process in ways that hinder transparency. Since XX/XX/XXXX I have corrected my mailing address with them at least XXXX times. Despite this, important correspondenceincluding the results of investigationscontinues to be sent to an incorrect address. These letters are then returned to American Express and re-sent only after the case has already been closed, denying me the opportunity to respond within proper timelines. 

I am attaching a letter sent by American Express and received after over a month as evidence of this mishandling. Given the seriousness of this situation and its broader implications for consumer safety, I urge further investigation into both the actions of the merchant and American Expresss handling of credit extension and dispute resolution.

Company response to consumer: Closed with explanation