be careful! american express pulling a fast one

[stormie 11]

Long story short, during the "panic of 08" when many banks were raising interest rates from 4% to 29.99% (they did this to me), American Express decided to put a cap on my spending limit.  I was capped from unlimited spending to $1500 a month.  Okay, no big deal I thought - I only spend about $500 bucks a month anyway, which I pay off at the end of every month.  Well, recently - about 4 months ago, they removed the cap back to unlimited spending. 

 

Last month in August I spent 1K on the card, and paid it all off on time, at the end of the month - (August).

 

Today, September 5th, I tried to buy a book from Amazon for about 50 bucks and found out that my card was declined.  I called AMEX and they said that because I have an "irregular pattern" on my card - meaning my spending went up from 500 to 1k, that I need to pay a $237 fee!  I said, "how does that even make sense?? I already paid off the entire balance last month and nothing is showing that I am passed due on anything!"    

 

To make matters worse, my balance online read, "$0.00 amount due".   American Express couldn't answer my question - they put me on hold many times.  They said, "Your irregular spending caused you to owe us a $237 payment".  

 

I just could not believe it.  I hung up on them cause I was at work and we kept going in circles and I was very annoyed.    About an hour later after my phone call to AMEX and I caught up on some of my work, I logged into my online account and this time, there were red letters saying, "your account is suspended until the $237 fee is paid off".    But there is no money due according to my payment schedule!

 

[racecar 556]

Tell them you would like to mediation to settle the fee issue.

The mediator does not decide the claim but helps parties reach agreement.

I think by asking for this in writing they will take off the fee.

You can use any tools in the credit agreement.

 

 

http://www.consumerfinance.gov/credit-cards/agreements/search/?q=american+express your credit agreement is here

 

Most customer concerns can be resolved by

calling our Customer Service Department at the

number listed on the back of your card. In the

event Customer Service is unable to resolve a

complaint to your satisfaction, this section explains

how claims can be resolved through mediation,

arbitration or litigation. It includes an arbitration

provision.

 

Mediation

In mediation, a neutral mediator helps parties

resolve a claim.

Before beginning mediation, you or we must

first send a claim notice. Within 30 days

after sending or receiving a claim notice,

you or we may submit the claim to JAMS

(1-800-352-5267, jamsadr.com) or the

American Arbitration Association ("AAA")

(1-800-778-7879, adr.org) for mediation. We

will pay the fees of the mediator.

All mediation-related communications are

confidential, inadmissible in court and not

subject to discovery. All applicable statutes of

limitation will be tolled until termination of the

mediation. Either you or we may terminate

the mediation at any time. The submission or

failure to submit a claim to mediation will not

affect your or our right to elect arbitration

 

Sending a Claim Notice

Before beginning a lawsuit, mediation or

arbitration, you and we agree to send a written

notice (a claim notice) to each party against

whom a claim is asserted, in order to provide

an opportunity to resolve the claim informally or

through mediation. Go to americanexpress.com/

claim for a sample claim notice. The claim notice

must describe the claim and state the specific

relief demanded. Notice to you may be provided

by your billing statement or sent to your billing

address. Notice to us must include your name,

address and Account number and be sent to

 

American Express ADR c/o CT Corporation

System, 111 8th Ave., NY, NY 10011. If the

claim proceeds to arbitration, the amount of

any relief demanded in a claim notice will not

be disclosed to the arbitrator until after the

arbitrator rules.

[BV80 2,725]

@stormie

 

I'd get a copy of the current cardmember agreement in order to find out if it includes anything even remotely related to such a fee.

[kutuzov 125]

Probably doesn't they just make it up, but dispute the fee cmrr and chose arbitration with JAMS, after you get the green card back call them and see if they are gonna remove it or you will need to go into arbitration, also ask for the filing fees, many of those contracts say they will pay your filling fees on arbitration. That should calm them down.

[willingtocope 1,336]

Which of the many flavors of  "American Express" card do you have?  Just looking over the T&Cs @racecar linked to, I can see a half dozen "gotcha's" hiding in there.

[racecar 556]

This is all in the new agreement.

Its now loaded with new options or "gotcha's"

[stormie 11]

I have the traditional green card - I used to have Platinum card, but downgraded it faster than they can blink during the "panic of 08" to avoid any crap from these people.

[willingtocope 1,336]

If I remember correctly, the Green Card REQUIRES you to pay in full each month, but has a yearly fee based on usage.  You might want to go to thier web site and read the T&C's completely.  I don't know why the people you talked with weren't willing to explain this, but you might actually owe them something.

[admin 885]

You ought write some financial reporters and tell them about this.  The Consumerist comes to mind.