Charged Interest on 0% interest card - Amex

jbarns

I applied and was accepted on an 18 month 0% interest American Express card.  Early on i entered my bank details for what I believed to be my bank details for automatic collection.  Whilst on holiday last year I received a call to say I had missed my first payment.  I called them immediately and made payment and in addition set-up a DD.  The plan was to pay this off in full before the interest free period had ended.  Having got to this point I looked into what I had to pay and found out that I had paid £601 in interest. I put in a complaint to have the interest refunded.  This has been rejected by Amex.  I informed them that when I spoke to the agent and made the payment, I had told the agent that I had set-up a direct debit payment and that I believe I had asked the agent about whether this would affect me, I was informed it would not(this was over a year ago).  Amex have lost any call recordings and have said the DD was set-up after the first payment was due, so they can't take my word for it and I have to go to the FCA.  Do I have a case considering they have lost the call recording?  They also asked if I have proof for entering my bank details, which of course I do not.

D3xt3r5L4b

The bank details is to confirm identification as detailed at the time of application.

Voyager2002

Did they add all that interest in a lump sum after the year ended? Or did you not look at any of your statements?

One key question: the payment that you made by telephone when they called you, does that payment show on your statement?

jbarns

D3xt3r5L4b  I got two cards at the time. One virgin and one Amex, both asked for my bank details, the virgin one instantly set-up and DD.  I'll be honest though and say I'm a little hazy as this was Feb 2019.
Voyager2002 They was adding it monthly and I didn't look at my electronic statements, I saw £100 being taken from my bank account every month.  Yes the payment that I made over the phone does show on the statement.

constantly_confused

I’m not sure where you would get with this. AMEX have said no but I suppose there is not harm in going to the FCA just in case, although I would assume the same result.

When you look at the facts you failed to setup a DD (albeit unintentionally) so you therefore forfeited the interest free terms. You then did not check the account until recently so have only just realised you were paying interest.

Feels like a costly mistake unfortunately.

cymruchris

I’d agree with the above - you should have checked the monthly statements regularly to ensure there were no fraudulent transactions for example. Having left it a year before you noticed I’m not surprised they no longer have the recordings. For anything financial I read everything on screen very carefully - and it would have told you if it was setting up a direct debit. It would have just been part of their ID checks. So sadly as you didn’t set up the direct debit, and you were late paying, which resulted in the forfeiture of the interest free period, which in turn gave you your £600 interest. Definitely a costly mistake, but one I’m sure you’ll not make in future. I really don’t think you’ll be getting anywhere with a further complaint based on the series of events described. 

jbarns

Well I don't totally agree with the negative views.  I'm going FCA, Ombudsman and County Court if I have to.  Worst case scenario it will cost Amex more than £600.00 in admin costs.  Voyager2002: Why is the over the phone payment on my statement a key question.  I'm interested to know why a credit card shouldn't notify you of a specific change in writing, when banks have to?

jbarns

Oh and just to explain to anyone here, as to why I'm not a complete idiot.  I only used it for a couple of purchases right at the start of getting the card.  I haven't used it at all for over a year.  I knew the amount and I could see £100 DD coming out of my bank account every month to a reputable company (so I thought).  I believed (wrongly) I would just be looking at one transaction.

[Deleted User]

jbarns said:

Well I don't totally agree with the negative views.  I'm going FCA, Ombudsman and County Court if I have to.  Worst case scenario it will cost Amex more than £600.00 in admin costs.  Voyager2002: Why is the over the phone payment on my statement a key question.  I'm interested to know why a credit card shouldn't notify you of a specific change in writing, when banks have to?

You can't "go FCA'.  Your two options are FOS or court. 

But remember that FOS are far more customer oriented that the courts, so think twice before laying out money for this.

Make sure you're checking statements for any other cards, in case you've replicated the mistake elsewhere.

Sandtree

jbarns said:

 I'm going FCA, Ombudsman and County Court if I have to. 

FCA doesnt take consumer complaints. The consumer route to the FCA is via the Ombudsman who will highlight trends/concerns to the FCA as it sees fit.

You have the right to go to the FOS or court however if you start court proceedings then the FOS will stop looking at the case. If you want to do both you have to take it to the FOS first and once that is exhausted you can then go to the courts.

I have to say I personally think you don't have a good case... you didnt check your first statement which would have confirmed there was no DD. You aren't sure exactly what was said with the agent and you only think you may have asked a rather nebulous question on "if it will affect me" which could be interpreted in relation to credit reference agency "black marks" etc and a host of other ways. You allowed the situation to continue a further 11 months before taking action.

Fight it if you want or will enjoy doing so but you're probably using up your time to end up in the same position.

k3lvc

jbarns said:

Well I don't totally agree with the negative views.  I'm going FCA, Ombudsman and County Court if I have to.  Worst case scenario it will cost Amex more than £600.00 in admin costs.  Voyager2002: Why is the over the phone payment on my statement a key question.  I'm interested to know why a credit card shouldn't notify you of a specific change in writing, when banks have to?

So customer makes mistake then in revenge takes it to external complaints body to cost the CC company money. I do hope they read this and use it in their defence of a vexatious claim