American Express - a cautionary tale

ihatethree

I have had a card with Amex since 2005. For a couple of years everything was fine, the card was never over limit and I had never made a late payment. Then without warning about 3 years ago they stopped my card with no explanantion and put me on fixed minimum payments, which were 2.5% of the balance at the time. I have paid this regualarly without complaint, however with the recent financial downturn I have found the payments harder to make recently. The payment amounts have not reduced despite the balance coming down. I wrote to Amex on the 15/08/2010 and requesting they reduce the payments. I asked for £30 per month as this would still be above the minimum 2.5% set out in their terms and conditions and would be more affordable for me. I also enclosed a payment for that amount. The cheque was cashed straight away, although at least two weeks later I had not received a reply. I phoned them and they claimed not to have received the complaint, if they didn’t get the letter I’d love to know how they got the cheque.
I then went through their complaints procedure on the phone. I was told this would take up to six weeks, during which time they continued to aggressively pursue me for more repayments. When they eventually responded they were totally unwilling to change my payments and informed me if I wished to apply for lower payments they would have to close my account and refer me to an internal debt collection agency! When I questioned them about the 2.5% in their terms and conditions they told me when they closed my account my terms and conditions had changed. How can they change a contract without my agreeing to it?
I then escalated the complaint to a higher level, again was left waiting about six weeks before they finally phoned me and told me the same decision had been reached. Despite several promises I have not received a single letter from them.
This complaint has now been sent to the Financial Ombudsman, so we'll see what comes from that.

Thunderball24

Hi
Know this was an old thread but I have exactly the same problem. My payments were set at £190 five years ago and have never changed.
Due to unseen circumstances I have asked them to reduce my payments and have offered to pay £120 a month - not a token payment by any means but they are refusing to budge- I am only one payment behind and have now started getting phone calls every day. I am now paying nearly 7% a month off my balance.
I have complained but the next step is the FO - did you have any response from them.
Thanks.

ihatethree

I complained to the F O who wrote back saying amex had ninety days to respond. Obviously I've heard nothing from them so im about to escalate the complaint with the Fo. Glad it's not just me being shafted by this lot!

ihatethree

Another development. Have just gone on Amex website to make a payment to be greeted by the message that they have cancelled my account and passed it to a 'collection agancy'. What do I do now?