Consumer complaint received 2025-06-20 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: HI

Complaint narrative:
I am forwarding this response because I'm unsure that these concerns will be addressed. It seems every time I try to communicate with American Express ; I always end up with a different person requiring the story to be toll multiple times. This is my response to XXXXXXXX XXXX I want to make sure Executive management has the opportunity to provide answers to my concerns and questions. XXXXXXXX XXXX XXXX with all due respect your claim that, " if the penalty APR is applied to the account, it would apply, subject to applicable law, for at least 12 billing periods in a row. In addition, the penalty APR will continue to apply until after you have made timely payments with no returned payments for 12 billing periods in a row '', is incorrect. My card member agreement as of XX/XX/XXXX states, " If the penalty APR is applied, it will apply for at least 6 months. We will review your Account every 6 months after the penalty APR is applied. The penalty APR will continue to apply until you have made timely payments with no returned payments during the 6 months being reviewed. '' Why are you suggesting and defending something different? In addition, the CARD Act requires American Express to explain the reasons for extending the penalty rate beyond the initial 6-month period. As required by the CARD Act, that never happened. I cant imagine what that would be. At the time, my credit score was XXXX, no payment had ever been returned, no payment had ever been late, and every payment was more than the minimum payment required. For me having to demonstrate timely payments is a bit comical considering my account history. Please provide me with American Expresss reasoning for such a punitive action by extending the penalty period. The CARD Act requires American Express to act fairly and provide cardholders with an opportunity to address issues that lead to penalty rates, yet American Express Customer Service tells me American Express doesnt have to notify me of a pending penalty rate. Under the CARD Act, American Express must provide clear communication regarding any changes that could affect the cardholder 's account, including the imposition of a penalty rate due to a returned payment. This notification should inform the cardholder of the issue and provide them with an opportunity to address it, such as by making a new payment or resolving any discrepancies. Unfortunately, for me I did exactly thatmade a new payment and resolved any discrepancies all prior to the due date, yet American Express chose not to follow guidance of the CARD Act. Please tell me why not? BTW, American Express Customer Service staff is under the impression that the consequence of this alleged returned payment is stated on the face of my monthly statement. It clearly is not. Why am I being told that? It only states potential consequences for a late payment which this payment was clearly not late. Be aware, on XX/XX/XXXX prior to the XX/XX/XXXXXXXX due date, I made an additional payment of {$3000.00} from a different source. As we move through this algorithm debacle it's becoming more and more apparent the driving force for American Express is looking more like corporate greed rather than fairness encouraged by the CARD Act. There are a lot of unanswered questions to actions by American Express that, in my opinion, violate requirements of the CARD act and especially the spirit of transparency and fair-trade practices encouraged by the Act. Im convinced most all of this problem is due to automation incapable of making commonsense human decisions. The only fair resolution to this totally avoidable situation is for American Express to credit my account with the penalty interest, approximately {$5000.00}. I was told by XXXX, employee ID XXXX, an American Express 's Customer Service Supervisor that if I had brought the matter up when it happened, she was confident the penalty would have been avoided. The problem with that is, I was never notified of the penalty as required by the CARD Act. Considering my history with American Express, the most disappointing thing is the reluctance of Executive management not to reach out to personally discuss the matter.

Company response to consumer: Closed with explanation