Any Ideas on next Action with Amex?

[universityprof]

Posted this issue a couple of days ago. Called AMEX yesterday and discovered interesting info. Had a very nice person at AMEX that dug through system files and discovered when the AMEX corporate account we had was closed and paid off on 1/15/05 there was an error and there was a $0.02 balance on the account they carried this balance forward on the account. They had no means of contacting us since the office and phone were shut down. In August of 2005 they decided to reissue cards for the account and charge the annual fees for each card, a total of $367.00

I asked them why the would do this and was told it was company policy and cards auto renew. When I asked why the account was not terminated when the $0.02 balance was not paid for 8 months and all mail would be returned and disconnected phones. They said that a $0.02 balance is not detected by their system and no collection action is taken. The customer service rep indicated that the debt had been sold in a package to JDB but did not know which one. I have never been contacted by a CA or anyone else yet it is being reported as a $0 balance charge off on a card that had a high limit of $367.00 Started disputing with CRA's in November with no luck. I ran my FICO yesterday and my scores had dropped from 830-TU, 815-EXP, 827-EQ to 760-TU, 731-EXP, 740-EQ

Should I pursue a small claims action against OC or CRA's?

Sorry for the dissertation, but it is annoying.

Thanks for any help or ideas

[willingtocope]

Wow...not an easy question.

First, did you actually close the account, or simply stop using it? If it was closed, they had no reason to issue cards.

Second, you said there was an error that resulted in a .02 balance. Was the error that the balance should have been zero, or that you didn't pay the extra 2 cents?

Regardless of the above answers, I would suggest your first approach to this should be a letter to someone higher up in AMEX explaining the situation (and, documenting why it was their fault) and asking that the remove all charges and delete them from your credit reports. You might also send a copy of your letters to the Office of the Controller at the US Treasury.

[universityprof]

The account was supposed to be closed, they were sent a letter to this effect. The card balance reflected in the January statement was paid. The statement date was 1-2-05, paid in full on 1-4-05. The $0.02 cents appeared on the February statement as an interest charge error by AMEX. We never received the February statement as the office was closed with the corporation dissolved and no forwarding order was given to the Post office. The account was apparently not closed by them in a timely fashion and the $0.02 balance kept it open, AMEX policy.

Any ideas on who to contact at AMEX?

Thanks

[whocares]

Try the BBB...and any higher ups you can find in AMEX...Notify them of ITS for incorrect reporting...that should get someones attention..

Good Luck