The letter below that i wrote to the american express director of customer service will explain the account activity of my american express account:
June 14, 2006
The Director of Customer Service
American Express
P.O. Box 7863
Ft. Lauderdale, FL 33329-7863
Dear Sir or Madam:
I am writing this letter to you to investigate my account activity and provide resolutions on my American Express Starwood Preferred Guest Platinum account (account no.: 371329479711008).
On November 2005, one of American Express (AX) customer service representative (CSR) called my home and offered me to open up to take advantage of a promotional balance transfer opportunity. He offered me a promotional balance transfer interest rate of 2.99%, until the balance is paid off. Since the promotional offer was a lucrative one and since I had mortgage payments of 8% rate, I took the advantage of paying a partial mortgage balance off through the promotional offer. My account was opened up with a $22,000 balance and I transferred $20,000 balance to the mortgage company.
After a month later, I learnt that AX has made the balance transfer to a wrong account. So, AX closed the account and investigated to get the balance transfer amount back. After the investigation, AX called me, obtained my balance transfer information, and made the balance transfer again to my mortgage company. Meanwhile, I already made an initial payment of $600 to my AX account.
When I received my first payment notice, I called up the AX to mention that I made my first payment already and requested the payment to be adjusted into my AX account. In the conversation with the CSR, I learnt that my promotional balance of 2.99% rate was only for 6 months period, not until the balance was paid off. I requested the CSR to investigate and told him/her that I would have never taken the balance transfer promotion for only six months. I requested to even close the account, give my payment back and take AXs balance transfer back from my mortgage company.
The rationale is that I would not be able to pay off the $20,000 balance within a six-month promotional period. And, I would never want to pay a higher interest of 17% 20% interest rate after the six-month period, while my mortgage payment rate was only 8%. In fact, no reasonable or prudent person would want to take that kind of deal.
So, the CSR to initiated a dispute on my account to investigate on the promotional offer. The CSR seemed to understand my argument and agreed with me that there must have been some kind of AX system error or misrepresentation by AX on this deal. As far as to make my second payment on my account, the CSR told me since I had initiated a dispute on the account, I did not need to make any payments until the dispute was resolved. Therefore, I did not make any payment after that and waited for the dispute to be resolved.
After a few days, I did not receive any response from AX and I received my second payment notice. The payment notice included a late payment fees and the interest rate charges of more than 20%. I called the AX and disputed again. This time I learnt from the CSR that my first dispute was not resolved because the reasons that I stated to the first CSR was not written/input in the AX system properly by the first CSR. Therefore, AX denied my dispute and charged me for late fees and higher interest rates, taking into account that I was late in making payment. So, the current CSR included in the system the correct reasons for my dispute and initiated a second dispute. The CSR also told me that the six-month promotional period started the first day I opened up the account. I clarified the CSR that the first time the balance transfer was made which went to the wrong account, and the second time the balance transfer was made actually took place after more than 2 months later. I also pointed out to the CSR that the balance transfer period should have started the date when the second transfer was made to my mortgage company. The CSR agreed with me and noted all of my points into my dispute. For the second time, I was also told by the CSR that since I was on a dispute, I did not need to make any payments. The CSR also notified to the account services of AX for adjustment of interest rate charges and late payment fees.
Again, I never received any response from AX to resolve my dispute and once again I received payment notices. The notice also included adjustment of prior late fees and interest rate charges, but included new late fees and interest rate charges.
I called the AX, and routinely, I had to narrate the whole history of my account activity to the CSR, or the account services specialists for more than 30 minutes. It appeared to me that AX did not keep records of my disputes, or any of the reasons or information that I mentioned previously was never recorded in the system of AX. The CSR, as like the other CSRs previously, made another dispute on my account and gave me the same excuses that AX would investigate on the matter and contact me later, or they could not adjust the account late fees, or interest rates, or my promotional rates and period.
After a few days later on March 2006 (and its been more than 4 or 5 months since I opened up the account), I received a call from the AX account services, and once again I narrated the whole history of my account activity. The representative gave me an offer to resolve the whole problem of my account. He offered me a promotional balance transfer of 2.99% rate for a one-year period starting that day for a balance of $19,400 ($20,000 - $600 payment made). In order to resolve this stressful situation of my account, I took the offer. He told me that he would adjust all the fees and bring my account balance to the original amount of $19,400 starting from the day that we agreed to the new offer. He told me that my monthly payments would be starting from one month after that day on.
In order to be good on the account, I promptly made an $800 payment as a fresh start on account, which was more than the usual minimum payment of $250 to $300, quoted by the representative.
After a few days again, I received payment notice, which included credits from all the previous charges; but once again a new late fees were added. I disputed again for the late fees.
Shortly after the new dispute, I called up the AX again to find whether I received credit for late fees. I learnt that the late fees were credited but the interest rates were charged for more than 23% on my account. I found that the promotional period was actually never changed from the first day I opened up the account and it stayed for the six-month period. Since, the so-called six-month promotional period expired, AX charged me with the regular interest rates. And with the late fees, AX bumped up the interest rate to 23% to 29%.
I called up the AX and for the last time, I disputed again. Now, this time I told the CSR that I will never make a single dime on payments to the account until I see a written letter from AX that my account was cleared from all the charges and was given me the original promotional rate of 2.99% until the balance is paid off.
Its been more than 2 months that I never received any response from AX to resolve my account problem. I kept on getting calls from AX to make payments and received threats that AX would send my account to the collections and ruin my credit.
I never kept track of the exact dates or CSRs names or time of conversations, and it was not my intention to keep track of the dates or names. I have credit scores of more than 800 and kept my credit in good care. I have other AX accounts and I am always good on making payments on my accounts. I always have more than $5,000 balance on my personal bank accounts. So, it never was an issue to me that I could not make the monthly payments or I would be late in making payments. The objective for me by opening this account was to take advantage of low rates and increase the value of my credit account and, eventually, maintain an outstanding good credit. I never was able to get this benefit from this account.
One thing I noticed that everytime I spoke to an AX CSR or representative, they seemed to not want to deal with my problem, rather transfer me to other places where I never found any resolutions. The CSRs appeared to not be able to offer any solution; rather they are limited or bound by AXs pre-formatted or pre-determined offers or packages for ordinary customers. And, since I do not fall into the so-called pre-formatted category, I would seemingly be ignored or not taken as a valued customer to AX. It is also clear to me that AX never kept track of my account transactions and phone calls to and from AX. Inadequate recordkeeping and information made it even more difficult to resolve the problem in my account.
I have been threatened by AX to send my account on collections and ruining my credit. My other AX accounts were closed off. Every time I was over the phone with an AX CSR, I had to be on the phone for hours explaining the activities of my account. I had been transferred to different departments or sections and CSRs to account services representatives to supervisors. My calls were routed globally from India to Canada and from North Carolina to California. I have been harassed by AXs service and I curse myself why I took the opportunity that was too good to be true. I am stressed out and fearful of having a bad record of my credit. I never envisioned that I would have to go through such an ordeal created by AX.
I do not know where to get help to resolve my account issues. Therefore, I am writing to you so that you can review my account and provide me a resolution on my account.
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