Complaint Review: American Express - Nationwide

American Express (amex) cardholder since 1999, who is a senior citizen, US Army Veteran (E5), retired law enforcement officer (31 years) and has always been there to help those in need, believing in goodness and trust in all relationships.

In May of this year, 2017, I discovered unauthorized charges on my amex card and immediately notified amex.  They stated the charges by McAfee were made over a 4 year period, and that they could not refund them, except for I believe 60 days.  I was disappointed, did not approve, but shame on me for not being on top of it, expensive lesson to be learned.

I immediately reviewed the entire amex account and discovered amex was converting my purchase balance to the higher rate cash advance balance.  I did not understand how this was being done, so I called amex customer service filing a dispute.

Amex responded by stating I did not understand the credit card agreement, and that I should read it and it explains how this cash advance balance became $18,666.  I requested copies of all my statements and amex sent me from 01-2011, stating that no statements before 01-2011 were available.  Amex stated my last cash advance transaction was 03-2005.

The statements indicated a cash advance balance on 01-2011 of $6200, I do not remember ever using cash advance, but amex stated I did use in 3-2005.  I reviewed the statements for 2011, and found I paid all payments on time and paid the minimum payment plus $1010 over the minimum payment for the year. The cash advance balance on 12-2011 was $6720, increasing $520 for the year without any transactions.

Reviewing my amex card agreement, it states minimum payment is 1% of outstanding balance plus all interest for the billing period.  Further there is a disclosure of how long it will take to pay off the balance if there are no new charges printed on each billing cycle statement.  So based on this information, I was dumbfounded as to how cash advance was increasing.

On June 8, 2017, I again contacted Amex customer service filing a billing error dispute #2, requesting a reconciliation of my account from 01/2011 to present, as I believed that payments were not being credited properly and according to the card agreement if I paid the minimum payment each month it covered all interest on all balances and over minimum payments were not being credited to the higher rate cash advance balance.

Providing amex with my figures for 2011, the cash advance balance should have been $5190 at end of 2011, and amex was charging me interest on higher rate cash advance for $6720.  The cash advance balance should be 0000, and I requested the reconciliation and an explanation of how it was increasing when I made minimum payments plus on time each month.

Amex customer service rep Rosa contacted me via telephone stating that the increase was due to accumulated interest on the cash advance account, I replied that it was my understanding that all interest per billing period was inclusive in the minimum payment for that billing period. I referenced the card agreement on minimum payments.

Rosa stated the cash advance balance increase was due to interest not paid, I objected stating all interest has been paid for every billing period, I have the statements, there is no additional interest that was not paid.  She insisted the interest was not paid, but could not tell me what interest was not paid, all statement interest has been paid, call ended.

I then filed a complaint with the Federal Consumer Financial Protection Bureau (CFPB), #170626-2198146, and amex responded with the same explanation, this time J. Pope amex customer service stated in the response that my April 2017 statement had a minimum payment due of $592 and I paid $600, the $8 over the minimum was not enough to cover the $412 interest on the $18666 cash advance balance. 

Amex J. Pope response states the $8 over the minimum was not enough to cover the interest, this is in writing.  The CFPB accepted amex response and closed my complaint.  I contacted CFPB stating I am a victim of a crime, and you closed my complaint based on the Amex response, the response does not comply with their agreement or federal law.

CFPB rep informed me my case was closed, they do not advocate for individuals and I should get an attorney. I attempted to explain my position that amex has been is continuing to violate the law and that I believed the CFPB represented the consumer, amex is billing me for interest I do not owe, they are not deducting over minimum payments and charging me interest on this fraudulently created cash advance balance.

Amex has violated the Credit Card Act of 2009 by increasing my interest rate on 14% purchase balance to the higher 26% cash advance balance with this scheme violating CFR 1026.55.

Amex has violated the Credit Card Act of 2009 by not applying the over the minimum payment amounts to the higher rate balance with this scheme violating CFR 1026.53.

Amex has violated the Credit Card Act of 2009 and the Amex Cardholder agreement by not applying the stated minimum payment agreement to payments to my account: 1% of outstanding balance, plus interest for billing period.

Amex has violated the Credit Card Act of 2009 and other federal and state laws involving theft by deception or scheme to deprive another of their property, increasing the cash advance balance without any consumer transactions and collecting the interest on this high rate balance and not deducting payments as agreed or lawfully, is a crime.

This is very wrong, and I would have never suspected a company like Amex to engage in this type of conduct and when made aware, continue in the illegal conduct.  Also very disappointed in CFPB, I believed they would stand up and make things right, isnt that what they do. 

Do not know what to do at this point, just want to be heard, will figure things out, good always conquers evil.