Amex Credit Card Complaint

Amex Credit card department,

Other fee Pennsylvania

Recently, due to failure to renew their master agreement, - and American Express have ceased their commercial relationship meaning that the - American Express Card would cease to be valid in -/-/-. According to a mailing received from -, all outstanding balances on the American Express Card would be transferred to the new Visa card they are issuing to members. Disturbingly, the mailing indicated that the balance transfer would be assessed at the penalty rate even though the American Express account was in good standing. As this will result in a significantly increased interest rate on outstanding balances, even though the cardholder did nothing whatsoever to warrant that assessment, and such assessment is by the terms of the new Visa cardholder agreement illegal since under that agreement the penalty rate can only be charged if the account is past due or payments have been missed. In my view this assessment constitutes an violation of the Fair Credit Billing Act as it is imposing a penalty where none is authorized.