In
the midst of the COVID-19 lockdown, I was presented with an appealing
offer from American Express. Desperate to break the monotony of
sheltering in place, I signed up. It was a shiny, new thing. I gave
in.
Sadly,
that was the peak of my Amex experience.
I
should admit I don't lead what would be called an American Express
lifestyle. I don't stay in thousand-dollar-a-night hotel suites. I
don't wear tailored suits as I jet off to London or Dubai on
business. I don't drive a German luxury sedan or an Italian sports
car.
An
internationally-known chef has never prepared my dinner.
Am I
painting a picture here?
Yes,
the card featured free balance transfers and a zero-percent APR for
the first year, but as someone who rarely carries a balance this was
only a minor perk. The cashback bonuses were nice, but since I didn't
use the card that much, they were also negligible.
Following
a post-holiday review of my finances, I realized I didn't need
another credit card and called American Express to cancel. This was
as painless as you'd expect it to be and was confirmed by American
Express in a follow-up e-mail:
“
Dear
La Piazza Gancio,
This
message is to confirm that American Express has processed your recent
request to cancel the following Card (sic) account(s):
Blue
Cash Preferred ending in XXXXXX.
If
you have other Card accounts registered for Manage Your Card Account
online they will still be available online at americanexpress.com.
Sincerely,
American
Express Customer Service”
It
paralleled the language of the agent who had handled my request over
the phone. But as I was soon to learn, American Express and I have
very different definitions of 'cancelled'.
Even
after cancelling the card I continued to get bills for the $95.00
annual membership fee, which I found quite strange being that I was
no longer a cardholder. $95.00 for a card I no longer have? Wow.
Seriously?
Assuming
it was another error by a short-handed and over-worked staff, I
ignored them. I mean, this was as cut-and-dried as consumer stuff
gets, right? I had the card and now I don't. Why would I pay a
membership fee?
Things
were peachy until I was hospitalized in July. During my
hospitalization a relative graciously stepped-in to take care of my
bills, and when the American Express notice arrived she processed it
as if it were a bill for purchases.
Only
it wasn't.
I
cringed. I immediately called American Express to request a refund.
The
agent told me a fanciful story. One that said since the card wasn't
cancelled within twenty-eight days of my last purchase, they were
within their rights to apply the membership fee. Neither the agent
with whom I made the initial request or the follow-up e-mail made any
mention of a fee.
Nor
did the small print on their monthly statements.
Even more interestingly, the following notation appears on their bills:
“We have billed your annual membership fee. However if we do not
receive your payment we will need to close your account due to
inactivity.”
So.
Let's see. I cancelled the card in January and did not pay the
membership fee that month. Or in February, March, April, May and
June. That's six months. It begs the question when, exactly, is an
American Express account rendered inactive?
It's
a cash grab—nothing more, nothing less.
I
filed a complaint with the Better Business Bureau September 7th.
Having heard nothing from either party regarding a resolution, I
e-mailed the BBB. I was told American Express had contacted me by
mail.
If
by that they mean there was written correspondence on American
Express' corporate letterhead within an American Express envelope
sitting in my mailbox, then no. Nothing.
(I
filed a second complaint via the BBB. I'll let you know what
happens.)
If
you enjoy doing business with corporations who issue shady and
nebulous fees without explanation, then please. Apply for an American
Express card today. But as gambling sites caution their customers,
never bet more than you can afford to lose.
Charging
a membership fee for a card that no longer exists is beyond the pale.
Furthermore, I don't understand how they are able to. Why isn't this
illegal?
Until
I find out, do business with American Express with extreme caution. (If you're a football fan, imagine being the quarterback for the Miami Dolphins.) Who
knows how many more unspoken fees lurk behind their shiny corporate
exterior?
I'm hoping the Consumer Financial Protection Bureau will be able to tell me.