Can American Express continue to do this?

cheexy

I wrote a letter to American Express back in January of this year regarding my very difficult financial situation. The letter included my budget document from Step Change. I never got any response from them but instead continued to receive letters as though they hadn't heard anything from me. I then sent two additional emails to the email address they provided to be contacted on, in the letters they sent me. No response. The debt was about  £14,400. My problem is that in addition to not acknowledging any of my communication, they have continued to add over £400 monthly to the initial debt which has now been passed to a law firm. This has added an additional whooping £2000+ on to the debt. I have no way of paying this debt as I don't work due to my newborn. I only receive Universal Credit which barely covers my priority bills so I occasionally get help from family. I also had my outstanding energy bill recently cleared by British Gas Grant.

I have other credit card debts and those companies have stopped applying interest since I reached out to them. 

Are American Express not being irresponsible in the way they have continued to ignore my communication? Is there a remedy to this? Any advice on next steps would be appreciated.

Brie

AE should at least acknowledge your correspondence but they aren't under any obligation to stop adding interest unless StepChange applies for an official breathing space for you and that will only work for 2 months.  You may need to consider what you are going to do if they continue.  Would a Debt Relief Order by appropriate for you?  StepChange should talk to you about this and other solutions.  

born_again

Maybe rather than letter or email ring them up.

MattMattMattUK

cheexy said:

I wrote a letter to American Express back in January of this year regarding my very difficult financial situation. The letter included my budget document from Step Change. I never got any response from them but instead continued to receive letters as though they hadn't heard anything from me. I then sent two additional emails to the email address they provided to be contacted on, in the letters they sent me. No response. The debt was about  £14,400. My problem is that in addition to not acknowledging any of my communication, they have continued to add over £400 monthly to the initial debt which has now been passed to a law firm. This has added an additional whooping £2000+ on to the debt. I have no way of paying this debt as I don't work due to my newborn. I only receive Universal Credit which barely covers my priority bills so I occasionally get help from family. I also had my outstanding energy bill recently cleared by British Gas Grant.

I have other credit card debts and those companies have stopped applying interest since I reached out to them. 

American Express are very much known for not playing ball in these kinds of circumstances, you either pay what you owe and what you are financially obliged to or they apply charges and fees and then go legal. 

cheexy said:

Are American Express not being irresponsible in the way they have continued to ignore my communication? Is there a remedy to this? Any advice on next steps would be appreciated.

They should have acknowledged your correspondence but they are under no obligation to stop charging interest or not charge the fees, both are set out clearly in your contract with them.

From having read about and many years ago experienced American Express's past behaviour your choice is now to pay in full or Amex will take the legal route, sometimes they sell the debt to a debt collecting company, sometimes they go down the CCJ route. As you do not have the money to pay then ultimately whatever the end up doing will prove ineffective, you will just have to let it run it's course.

cheexy

Brie said:

AE should at least acknowledge your correspondence but they aren't under any obligation to stop adding interest unless StepChange applies for an official breathing space for you and that will only work for 2 months.  You may need to consider what you are going to do if they continue.  Would a Debt Relief Order by appropriate for you?  StepChange should talk to you about this and other solutions.  

I spoke to StepChange recently about the breathing space and they said that this option was not available to me as I earn so little. They were more concerned that I was unable to meet up with my priority debts and would not be taking up any employment due to my baby. The only option they suggested was payment suspension which is what I sent to AE and the other creditors. My total unsecured debt is around £45,000 so the DRO may not be an option for me.

MattMattMattUK

cheexy said:

Brie said:

AE should at least acknowledge your correspondence but they aren't under any obligation to stop adding interest unless StepChange applies for an official breathing space for you and that will only work for 2 months.  You may need to consider what you are going to do if they continue.  Would a Debt Relief Order by appropriate for you?  StepChange should talk to you about this and other solutions.  

I spoke to StepChange recently about the breathing space and they said that this option was not available to me as I earn so little. They were more concerned that I was unable to meet up with my priority debts and would not be taking up any employment due to my baby. The only option they suggested was payment suspension which is what I sent to AE and the other creditors. My total unsecured debt is around £45,000 so the DRO may not be an option for me.

A DRO is not an option for you. As was said on your other thread one cannot have a DRO if one is a homeowner, a DRO is only available for those with few or no assets.

cheexy

born_again said:

Maybe rather than letter or email ring them up.

I thought it was better to have written records of communication.

cheexy

MattMattMattUK said:

cheexy said:

Brie said:

AE should at least acknowledge your correspondence but they aren't under any obligation to stop adding interest unless StepChange applies for an official breathing space for you and that will only work for 2 months.  You may need to consider what you are going to do if they continue.  Would a Debt Relief Order by appropriate for you?  StepChange should talk to you about this and other solutions.  

I spoke to StepChange recently about the breathing space and they said that this option was not available to me as I earn so little. They were more concerned that I was unable to meet up with my priority debts and would not be taking up any employment due to my baby. The only option they suggested was payment suspension which is what I sent to AE and the other creditors. My total unsecured debt is around £45,000 so the DRO may not be an option for me.

A DRO is not an option for you. As was said on your other thread one cannot have a DRO if one is a homeowner, a DRO is only available for those with few or no assets.

Exactly my thought.

born_again

cheexy said:

born_again said:

Maybe rather than letter or email ring them up.

I thought it was better to have written records of communication.

While it can be, they may just copy it to your account. 

Calling them, they can not ignore your request. Although they should say how they are going to deal with your case. All these co's have credit teams who deal with these issues & should work to help you, as it is in their best interest to make sure that they get the best return.

Andyjflet

cheexy said:

I wrote a letter to American Express back in January of this year regarding my very difficult financial situation. The letter included my budget document from Step Change. I never got any response from them but instead continued to receive letters as though they hadn't heard anything from me. I then sent two additional emails to the email address they provided to be contacted on, in the letters they sent me. No response. The debt was about  £14,400. My problem is that in addition to not acknowledging any of my communication, they have continued to add over £400 monthly to the initial debt which has now been passed to a law firm. This has added an additional whooping £2000+ on to the debt. I have no way of paying this debt as I don't work due to my newborn. I only receive Universal Credit which barely covers my priority bills so I occasionally get help from family. I also had my outstanding energy bill recently cleared by British Gas Grant.

I have other credit card debts and those companies have stopped applying interest since I reached out to them. 

Are American Express not being irresponsible in the way they have continued to ignore my communication? Is there a remedy to this? Any advice on next steps would be appreciated.

Playing devils advocate they could argue that having a child doesn't preclude you from paying your debts. Most banks have huge backlogs to deal with so they will be working through the pile of letters. Call them up and discuss but they will ask how you are going to pay your debt back. When did you stop spending on AE knowing you were having a baby with no future income? 

sourcrates

Just let it go to debt collection, and deal with whoever writes to you, that`s usually a much simpler solution than trying to contact someone who does not want to be contacted.