Amex fined for conveinance check problem

American Express forum. Talk about AmEx credit cards like Blue, Gold, Platinum, Centurion, and more.
2 posts
User avatar
Mogul of Pineapples
Centurion Member
Centurion Member
Posts: 1271
Joined: Sun Jun 01, 2008 11:32 pm
Location: Smogland

Amex fined for conveinance check problem

Postby Mogul of Pineapples » Tue Jul 14, 2009 1:38 am

Saw this at the end of last month. American Express has been charged a hefty fine of half a million plus refunding around 3.5 mil in charges it made on customer's accounts. It doesn't sound like the problem was intentional at all, bur rather one of those "oops we forgot to think about that" type situations.

Basically what happened is they sent out their routine convenience checks (the ones I throw in the shredder) and of course on those they have an interest rate and tell you that you can write checks up to X number of dollars from your credit line. Now here's where the problem is: because of the economy, as you know most banks are slashing credit limits. Amex slashed credit limits on cards after these checks had been sent out. But the checks still said customers could write up to their credit limit of X dollars. Problem is that now that credit limit was no longer valid. So some customers ended up using these checks only to find out later that the checks have been rejected because their limits have been cut.

American Express Fined for Convenience Check Changes (Update1) -
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

Centurion Member
Centurion Member
Posts: 103
Joined: Wed Apr 16, 2008 2:07 pm
Location: Big Island, Hawaii

Postby 1bootcamp » Thu Jul 30, 2009 12:33 am

Interesting. I kind of wonder why though the feds haven't taken action against other credit cards for this. Hell I've had my limit cut when I got convenience checks in the mail just days before.

Return to “American Express”

Who is online

Users browsing this forum: No registered users and 3 guests