Consumer complaint received 2025-12-23 00:00:00
Product: Debt collection — Auto debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: AMERICAN EXPRESS COMPANY
State: MA

Complaint narrative:
On XX/XX/year>, XXXX issued a refund in the amount of * * {$530.00} * * to be credited to my American Express credit card account. A billing dispute was then opened regarding this amount, but American Express refused to apply the refund as a credit to my account, stating that the amount was not in collections because the dispute had not yet been resolved and asserting they had the right to withhold credit during the investigation. Without my authorization, American Express thereafter initiated an automatic debit for the full disputed amount and also double-billed an additional * * {$76.00} * * that had already been paid, resulting in an unauthorized * * overpayment * * taken from my account. [ XXXX ] During a telephone call on XX/XX/year>, American Express represented that the disputed balance would not accrue interest or be subject to collections while the matter remained under investigation, rather than issuing a temporary or provisional credit as allowed under federal consumer credit protections. American Express further stated that it had the option either to withhold a temporary credit or to issue XXXX during the dispute process, and chose not to issue any such credit. Despite those assurances, on XX/XX/year>, American Express performed an automatic debit for the disputed amount and caused an unauthorized * * overpayment * * from my account totaling * * {$670.00} * *, without my consent. [ XXXX ] On XX/XX/year>, American Express acknowledged by phone that it had, in fact, taken these funds and admitted that, due to an internal error, the credit for the XXXX refund and related adjustments had not been properly applied to my account. American Express further stated that the full * * {$670.00} * * would be returned to my account within XXXX hours, yet the funds were not returned, leaving my account short by * * {$670.00} * * and showing an improper remaining balance of * * {$76.00} * * despite prior payment. These actions constitute unfair and deceptive conduct and a failure to properly resolve a billing dispute, as American Express accepted and retained funds it agrees were owed back to me, failed to apply the credit due to an internal error, and then refused to promptly return the overpayment while an active dispute was pending. [ XXXX ] Accordingly, I demand that American Express immediately : ( XXXX ) return the full * * {$670.00} * * overpayment to my account; ( XXXX ) apply the * * {$530.00} * * XXXX refund and any related credits correctly ; ( XXXX ) remove any interest, fees, or negative notations arising from this dispute; and ( XXXX ) provide written confirmation that my account has been corrected and that no adverse reporting or collection activity will result from this error. If this matter is not fully resolved and the funds are not returned without further delay, I will have no choice but to pursue all remedies available under applicable consumer protection and credit billing laws, including filing formal complaints with the appropriate regulatory agencies. [ XXXX ] [ XXXX ] ( https : XXXX )

Company response to consumer: Closed with monetary relief