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American Express cancelled my account

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Re: American Express cancelled my account


American Express Closed accounts for second time In 2 months


Well have nothing good to say about American Express credit cards. They have the worst business practices we have ever seen.
Last month they decided to close our accounts and this was done by a rude "account manager" that asked 50 million questions and then said the accounts are closed cut up cards.


So we asked to speak to someone else and all we had to do is send some forms in and our accounts were opened back up this was 04/15/2010. On 05/18/2010 after we used both accounts for a purchase now we get a email stating that are accounts are closed here we go again. We do not understand how we can make a purchase at 6PM then at 6:05PM are accounts are closed for no reason we always pay about 600% over the monthly payment because we use cards all the time. American Express customer service is by far the worst, was told 05/18/2010 by an American express agent that she can not see why the account is closed and was going to have a manager call us on 05/18/2010 STILL WAITING.

So in summary I would not recommend to use American Express for either business or personal we will be sticking with our Visa and MasterCard accounts for we have not had one ounce of problems with them, they do not just close our accounts for no reason.

Message 71 of 85
Senior Contributor

Re: American Express cancelled my account


MidnightVoice wrote:

pappysal wrote:

 

 Now it will most likely cost me some fees or the hiring of a lawyer to find out what the reasoning was behind this since I have no idea who to contact and any of the Government so called consumer help agencies have no place to adress a problem such as this.

 


To be honest, I don't think they legally require a reason.  I don't think they are breaking the law by closing the cards of customers


Actually a reason is legally required.  The ECOA requires written notification and reasonable explanations directly related to creditworthiness for any adverse action taken. 

IAALBNYL
Message 72 of 85
Valued Member

Re: American Express cancelled my account

I had an Amex card for close to 20 years until late last year.  I received a letter one day telling me my 13.99% rate was changing to 27.99%.  The letter indicated this was a result of current economic factors.  I phoned Amex and asked that the rate not be increased, and they said no...so I closed the card and PIF the $110 balance.  Of course Amex told me how I would miss all the benefits of having the card, but I have not.  This was a watershed moment for me, I re-evaluated all CC's that I had and slowly started to phase them out.  I now have one mastercard that I use for emergencies, large purchases ,or travel, and a debit card through my credit union, and a fuel card.  I had a couple stores cards and a Target Visa but those are all history now.  OP, you will not miss your Amex!

Message 73 of 85

Re: American Express cancelled my account

I just found out today that American Express has cancelled my account.  I was getting gas and not even a call to warn me about it.  I had paid my balance prior to even the closing date and they still did this claiming they ran my credit and my credit had changed dramatically and also sited that my debt to income ratio isn't there.  Can they do this and yes I would love to get Senator Feinsteins information regarding this.

 

Sheryl

Message 74 of 85
Senior Contributor

Re: American Express cancelled my account


thegirlofsteel wrote:

I just found out today that American Express has cancelled my account.  I was getting gas and not even a call to warn me about it.  I had paid my balance prior to even the closing date and they still did this claiming they ran my credit and my credit had changed dramatically and also sited that my debt to income ratio isn't there.  Can they do this and yes I would love to get Senator Feinsteins information regarding this.

 

Sheryl


Hi.  This is an old thread so the people originally posting here may not be monitoring it anymore.  Has something in your report changed? New tradelines, anything negative, maxing out other cards, late payments, etc.?  I think if they cancel your card based on something negative appearing on your credit report they have to give you notice within 30 days, but it doesn't have to be advanced notice.  Sorry this happend to you.


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Message 75 of 85
Highlighted
Valued Contributor

Re: American Express cancelled my account

In most card holder agreements their is verbaige to the effect it is not only your credit history with just them but all your other creditors will be reviewed.  AMEX is looking at your whole credit picture.  I would suggest you look at  your revolving credit utilization which is total balances/ dviided by total credit limits. Ideally you want to keep that number under 10%.   The credit utilization can impact your credit score negatively if it is a high number.  You can call AMEX and see if they will re-consider but from other posts I have read I doubt they will. 

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Message 76 of 85
New Member

Re: American Express cancelled my account

Old thread but decided to comment because something similar happened to me. I was told I had to pay $1,755 by Feb 23rd. I paid $1,800 on Feb 19th, so my account was current with an outstanding balance of $600 on my Amex Platinum card. On Feb 22nd Amex decided to cancel my account, which ordinarily is legal. However, when speaking with customer service they said they made a mistake(I have proof of this in writing) and I actually owed the full amount on my account - $2,397, NOT $1,755, and that I had to pay it BY Feb 23rd still. But due to their mistake they said they would give me 'a few extra days' to pay it.

 

My girlfriends in law school, I'm not an idiot, and it's easy to see Amex shot themselves in the foot. Under the Fair Credit Billing Act, they cannot legally demand money due to a billing error on their part, nor can they close an account that is determined to contain a billing error, nor can they penalize my credit because of a billing error, and they forfeit all rights to collect the remaining $600 if they are non-compliant. So now I have to write them a letter pointing out that they're blatantly breaking the law, and if they choose not to resolve this, I have the right to take them to court.

 

Either way I do not plan on using Amex in the future. That was completely reckless and idiotic on their part, and goes to show they clearly have a warped view of 'low risk'.

 

http://www.law.cornell.edu/uscode/text/15/1666

 

Here's the law for future reference, which is intended to protect consumers from malpractice like this.

Message 77 of 85
Regular Contributor

Re: American Express cancelled my account


IBeLucas wrote:

Old thread but decided to comment because something similar happened to me. I was told I had to pay $1,755 by Feb 23rd. I paid $1,800 on Feb 19th, so my account was current with an outstanding balance of $600 on my Amex Platinum card. On Feb 22nd Amex decided to cancel my account, which ordinarily is legal. However, when speaking with customer service they said they made a mistake(I have proof of this in writing) and I actually owed the full amount on my account - $2,397, NOT $1,755, and that I had to pay it BY Feb 23rd still. But due to their mistake they said they would give me 'a few extra days' to pay it.

 

My girlfriends in law school, I'm not an idiot, and it's easy to see Amex shot themselves in the foot. Under the Fair Credit Billing Act, they cannot legally demand money due to a billing error on their part, nor can they close an account that is determined to contain a billing error, nor can they penalize my credit because of a billing error, and they forfeit all rights to collect the remaining $600 if they are non-compliant. So now I have to write them a letter pointing out that they're blatantly breaking the law, and if they choose not to resolve this, I have the right to take them to court.

 

Either way I do not plan on using Amex in the future. That was completely reckless and idiotic on their part, and goes to show they clearly have a warped view of 'low risk'.

 

http://www.law.cornell.edu/uscode/text/15/1666

 

Here's the law for future reference, which is intended to protect consumers from malpractice like this.

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Was this a charge card?  If so, charge cards are suppose to be paid in full each month unless there is a carry over balance allowed.  However, Amex does not like to see balances carried over for too long from all that I read on this site. 

 

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Message 78 of 85
Super Contributor

Re: American Express cancelled my account


IBeLucas wrote:

Old thread but decided to comment because something similar happened to me. I was told I had to pay $1,755 by Feb 23rd. I paid $1,800 on Feb 19th, so my account was current with an outstanding balance of $600 on my Amex Platinum card. On Feb 22nd Amex decided to cancel my account, which ordinarily is legal. However, when speaking with customer service they said they made a mistake(I have proof of this in writing) and I actually owed the full amount on my account - $2,397, NOT $1,755, and that I had to pay it BY Feb 23rd still. But due to their mistake they said they would give me 'a few extra days' to pay it.

 

My girlfriends in law school, I'm not an idiot, and it's easy to see Amex shot themselves in the foot. Under the Fair Credit Billing Act, they cannot legally demand money due to a billing error on their part, nor can they close an account that is determined to contain a billing error, nor can they penalize my credit because of a billing error, and they forfeit all rights to collect the remaining $600 if they are non-compliant. So now I have to write them a letter pointing out that they're blatantly breaking the law, and if they choose not to resolve this, I have the right to take them to court.

 

Either way I do not plan on using Amex in the future. That was completely reckless and idiotic on their part, and goes to show they clearly have a warped view of 'low risk'.

 

http://www.law.cornell.edu/uscode/text/15/1666

 

Here's the law for future reference, which is intended to protect consumers from malpractice like this.


(e) Effect of noncompliance with requirements by creditor

Any creditor who fails to comply with the requirements of this section or section 1666a of this title forfeits any right to collect from the obligor the amount indicated by the obligor under paragraph (2) of subsection (a) of this section, and any finance charges thereon, except that the amount required to be forfeited under this subsection may not exceed $50.
 

So doesn't that say that they would forfeit the right to collect $50 of the $600, not the whole amount.
Message 79 of 85
Super Contributor

Re: American Express cancelled my account

Also, not sure about this at all.   Your payment for the month was the figure quoted, right.   But once they decide to close your card, isn't there language that all outstanding balances are due on demand (or something like that).   This isn't a billing error, more a consequence of them deciding to cancel.

 

But lets see.   But I certainly wouldn't rely on a girlfriend in law school: if you don't want to pay, talk to a consumer credit lawyer to see what the worst case consequences can be, such as a charge off on your credit record

Message 80 of 85