Amex fined for conveinance check problem

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Mogul of Pineapples
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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 Problem is that now that credit limit was no longer valid.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) -
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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.

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