Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
UnhappyCamper85

2 Contributions
0 People Helped
AmEx cancelled my card in good standing but won't refund $95 annual fee. Is this legal?
Amex conducted a financial review after 5 months of me having the BlueCash card and 3 months of Delta Gold, both 1k CL. I have payed balances before due and both accounts were in good standing, as are all of my credit cards. I paid a $95 annual fee for the BlueCash card the first month. The financial review consisted of me filling out a form allowing them to see my tax return. I filed an extension this year, so 2015 was the last available one (I made about 30k less in 2015 than I did in 2016). When I applied for the cards, I accurately divulged my income info, which was from 2016. I'm assuming my accounts were closed because 2015's income was less than I disclosed when applying but I'm not sure. I asked to be refunded my membership fee and was told it's not possible by a couple AmEx employees. I also was not able to redeem the cash rewards I had accrued. Is it legal to accept a fee for a one year membership, cancel it after 5 months and not refund the customer? What can I do? And I don't even really care about a couple measly 1k cards... I have 60k CL with Discover, Citi, and BofA collectively. I just don't like being taken advantage of.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
2 Contributions
0 People Helped

AmEx cancellation

And to add to that I now have 2 additional hard inquiries on my report from these accounts that won't be used

Top Contributor
1132 Contributions
358 People Helped

You don't mention your utilization on any of your cards,  indebtedness, and whether all payments have been made on time and for more than the minimum amounts.  Hopefully you pay them in full.  No lender likes to see more than  30% utilization, and preferably less.

Amex can be very particular. Since your income decreased, your debt to income ratio increased, unless your cards are paid in full, that could be a reason.  They can also be very picky where you're using your card. If they see it being used at casinos, hospitals, marriage counseling, or any other areas they feel could impact your stability and ability to pay - they will close the account or decrease the credit limit.

Reply by
UnhappyCamper85

2 Contributions
0 People Helped

I have never had a late payment on any card in my life and AmEx was paid in full before each due date. I mostly used the card for gas and restaurants. But no matter where I used my card, I prepaid for one year of membership. It would be like Amazon cancelling my Prime membership after 4 months and keeping the $100 I paid up front. I don't see how this can be legal

Top Contributor

Reply by
mindjazz

1132 Contributions
358 People Helped

Unfortunately account closure is legal, as well as charging the fee and not paying reward points. I guess it's for the "honor" of having their card.  Amex should have sent you a letter stating the reason(s) they closed your account. 

I would suggest asking to speak to a supervisor. Be calm and pleasant, non accusatory. Request the return your fees and points.  Make a note of whom you spoke with.  If you don't receive satisfaction;  think about writing a formal letter to Amex outlining the fees, your experience, people at Amex you spoke with, date, times etc. 

Good luck.

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.