Consumer complaint received 2025-06-21 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:
My name is XXXX XXXX, and I am submitting this complaint against American Express Company ( Amex ) for deceptive and abusive practices related to the securitization of credit card receivables, including my own. These actions involve misrepresentation, lack of transparency, and unauthorized sharing of personal financial information in violation of the Truth in Lending Act ( TILA ), Fair Credit Reporting Act ( FCRA ), Gramm-Leach-Bliley Act ( GLBA ), and CFPB regulations on fair and responsible lending.

According to Amexs own words in a publicly filed Prospectus Supplement with the U.S. Securities and Exchange Commission ( attached as Exhibit A ), American Express engages in a scheme to convert consumer credit card obligations into asset-backed securities ( ABS ) for sale and trade on secondary marketswithout ever disclosing this to consumers or obtaining their consent. 

The trust assets will consist primarily of receivables arising in a portfolio of designated credit card accounts that have been originated by American Express.

The investor certificates may be offered from time to time and sold to investors in transactions in the United States or elsewhere.

This means that the balance I owe on my Amex account was transferred into a financial trust, sold to investors, and used to generate profit for Amex and other partiesyet Amex continues to treat me as if I owe the debt directly to them. I was never informed in the application, agreement, or billing statements that my credit obligation would be used in this way. This amounts to double recovery, misrepresentation of creditor identity, and violation of my rights as a consumer. 

Despite securitizing the receivables, Amex continues to : Send bills, Report the account to credit bureaus, Attempt collection, and Retain the appearance of creditor control.

This conduct violates several provisions of federal law : Violations of Federal Law : Truth in Lending Act ( TILA ), 15 U.S.C. 1601 et seq.

1637 ( a ) ( 6 ), 1639 ( b ) : Failure to disclose the true creditor and use of consumer credit for securitization.

Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681s-2 ( b ) Reporting information on accounts Amex no longer legally owns creates inaccurate and misleading credit data.

Gramm-Leach-Bliley Act ( GLBA ), 15 U.S.C. 68016809 & Regulation P ( 12 C.F.R. 1016 ) Sharing of my nonpublic personal financial information with trust investors, underwriters, and third parties without my opt-in consent.

Consumer Financial Protection Act ( CFPA ), 12 U.S.C. 5531 Deceptive acts or practices in connection with financial products and services, including nondisclosure of securitization.

Unfair and Abusive Practices ( UDAAP, 12 U.S.C. 5536 ) Amexs conduct is unfair, deceptive, and abusive in nature, as it hides material facts that would have influenced my choice to enter the contract.

Amex also states in its Prospectus : Each series of investor certificates will represent fractional undivided interests in the trust.

However, as the person whose credit card balance was securitized, I receive no interest, profit, or transparency. I am treated solely as a liabilitywhile Amex earns from the securitization of my debt. This constitutes unjust enrichment, breach of fiduciary responsibility, and constructive fraud.

Relief Requested : Immediate investigation into American Expresss securitization practices.

Disclosure requirement : Mandate that Amex must disclose securitization in its consumer agreements.

Order Amex to stop collection and credit reporting on securitized accounts unless it proves ownership.

Require Amex to return all payments made on securitized accounts, with interest.

Delete any negative reporting on these accounts from consumer credit reports.

Enforce penalties under UDAAP provisions for deceptive and abusive conduct. 

Refer the matter to the DOJ or SEC for criminal investigation where applicable.

Company response to consumer: Closed with non-monetary relief