Beware of this hidden Fraud - American Express

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Deal Cadet
satswid

So, I was surprised to see a charge of 1.5k Rs. 1.2k points on my Amex CC bill.
I called the CC and asked the details. To my surprise, he said that its late fee and processing fee for a defaulted payment. I checked my SMS’ once again to find that there were absolutely NO SMS sent by Amex about statement generation/delay in payment even after so many days of a missed payment, although I was getting all the OTPs when I spent money.
As I was counting on these SMS alerts, I never knew about the missed payment.
The CC said that he has “refreshed the system” and now I should get the alerts and refunded 250 Rs. I made full payment with fees and insisted that I should get a full refund of whatever was deducted as Amex has a duty to notify me about the statements and delays and I was counting on the SMSes. To my surprise, the CC turned rude and tried to frame me for their mistake. He disconnected when I asked to speak to his supervisor.

I once also got a call from CC who said that as I have made full payment, nothing can be done now. WHAT?.

I attempted multiple emails and even escalated to RBI, but they now say that they have records of SMSes being sent from their ‘system’ implying that I must be lying.
They seem to not care even if I close the card.

I still wonder, why would the first CC refresh the system if he could see the records? 
And why did the second CC say that because the payment is made,, nothing can be done.

One of my friends also faced a similar thing with Citibank, where he didn’t recieve any notification on a payment for months, and then had to pay heavily for the accumulated interest.


Please be very aware of this new kind of fraud and avoid such hassle-prone services and cards. They are just like eagles who want to loot you.

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Deal Cadet Deal Cadet
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why not pay just after statement why delay

Deal Cadet Deal Cadet
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No notification/alert sent to me, even for statement generation. I was counting on SMS alerts.

Deal Cadet Deal Cadet
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That’s one of the reason I use cred though sometimes I don’t even pay via CRED but it still keeps all the record of all of my cards in one place and it’s become very easier to track.
I also once paid around 2000rs extra on one card as instead of full payment I mistakenly paid 100rs less, it was a 1lakh or something bill.
Learned my lesson, Now I keep outstanding balance Zero most of the time even after heavy spends.

Pro Shopping Friend Pro Shopping Friend
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satswid wrote:

No notification/alert sent to me, even for statement generation. I was counting on SMS alerts.

Now better move on and recover fees thru utilizing offers
SMS can be missed for many reasons, and depending on them solely is tragic mistake
Its a lesson for all
I get regular emails too about payments/dues so subscribe to emails too

Its is always easy and stress free to have alarms/notification/email reminders and clear dues on time than fight with them and also loose money too for simple mistakes

Deal Cadet Deal Cadet
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a.kabeer31837 wrote:

That’s one of the reason I use cred though sometimes I don’t even pay via CRED but it still keeps all the record of all of my cards in one place and it’s become very easier to track.
I also once paid around 2000rs extra on one card as instead of full payment I mistakenly paid 100rs less, it was a 1lakh or something bill.
Learned my lesson, Now I keep outstanding balance Zero most of the time even after heavy spends.

It’s good that you are sharing your experience too. It will help people who trust these eagles to send them notifications.
And they are legally bound to send alerts before charging any late fees.

Deal Cadet Deal Cadet
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caks2006407 wrote:

Now better move on and recover fees thru utilizing offers
SMS can be missed for many reasons, and depending on them solely is tragic mistake
Its a lesson for all
I get regular emails too about payments/dues so subscribe to emails too

Its is always easy and stress free to have alarms/notification/email reminders and clear dues on time than fight with them and also loose money too for simple mistakes

Agreed. Although it takes a lot of time to make a good CIBIL score. And it hurts to see it down by 35 points for their mistake

Analyst Analyst
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caks2006407 wrote:

Now better move on and recover fees thru utilizing offers
SMS can be missed for many reasons, and depending on them solely is tragic mistake
Its a lesson for all
I get regular emails too about payments/dues so subscribe to emails too

Its is always easy and stress free to have alarms/notification/email reminders and clear dues on time than fight with them and also loose money too for simple mistakes

+1 You shouldn’t rely on SMS. SMS alerts can be missed/delayed at times due to network congestions etc fancy things. These are not really under our control. The best thing you can do is to set recurring reminders based on the statement generation date.

I usually set 2-3 reminders starting 10 days before the due date. And eventually pay even before the reminder gets triggered.

Deal Lieutenant Deal Lieutenant
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satswid wrote:

No notification/alert sent to me, even for statement generation. I was counting on SMS alerts.

why sms..u get email for statement if subscibed.

Deal Lieutenant Deal Lieutenant
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I thought Any new Dimer Did Fraud with name American Express 😐

Deal Captain Deal Captain
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sauravDD wrote:

I thought Any new Dimer Did Fraud with name American Express 😐

+1 flushed

Deal Captain Deal Captain
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pranavcool wrote:

why not pay just after statement why delay

Sab need aur want ka chakkar hai bhai cry

Deal Cadet Deal Cadet
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sauravDD wrote:

I thought Any new Dimer Did Fraud with name American Express 😐

At first I thought so. Not so good time for Amex these days. – wink

Deal Cadet Deal Cadet
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nomag wrote:

why sms..u get email for statement if subscibed.

I have auto alert on my phone based on SMS.

Deal Subedar Deal Subedar
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Relying on SMS alerts for payments is not a good thing especially when one has too many cards and other bills.
Set mobile reminders for due dates and also set auto debits for bills to avoid paying fines.
Even if you decide to proceed legally you will dragging Card issuer, Mobile Carrier, Handset Maker, all 3 to the court.
(I have no idea whether sending payment reminders is legally mandatory.)

Deal Lieutenant Deal Lieutenant
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What is the fraud out here? Am I missing something? It’s a simple thing of missing the due date and hence AMEX levied the charges.. Almost every utility service provider does this… You miss, I hit…. Users are being lazy these days stuck_out_tongue_closed_eyes stuck_out_tongue_closed_eyes… First take money on credit from you and then expect you to remind them to payback the same.

Deal Cadet Deal Cadet
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Maverickz wrote:

What is the fraud out here? Am I missing something? It’s a simple thing of missing the due date and hence AMEX levied the charges.. Almost every utility service provider does this… You miss, I hit…. Users are being lazy these days stuck_out_tongue_closed_eyes stuck_out_tongue_closed_eyes… First take money on credit from you and then expect you to remind them to payback the same.

It is regulatory requirement for these companies to notify users before levying an unnecessary charge.

Not following regulations just to get exorbitant fees from user is a fraud.
Followed by nullifying a user’s concern and putting the entire blame on him.

Not everyone has spare time to daily open the app and check if statements are generated or not..

Nobody goes to the Electricity company daily to check if the bill is generated or not. It’s not laziness. It’s common sense

Deal Cadet Deal Cadet
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satswid wrote:

It is regulatory requirement for these companies to notify users before levying an unnecessary charge.

Not following regulations just to get exorbitant fees from user is a fraud.
Followed by nullifying a user’s concern and putting the entire blame on him.

Not everyone has spare time to daily open the app and check if statements are generated or not..

Nobody goes to the Electricity company daily to check if the bill is generated or not. It’s not laziness. It’s common sense

The statement itself is a intimation of your dues and at the time of applying the card you have agreed to the terms and conditions of late payment fee etc so you can’t blame anymore. The sms is only an additional gesture not a mandatory. So, instead of fighting you should have convinced them with some sob story to reverse the charges. Generally all banks except Axis accept such requests and reverse the finance charges but not GST.

Deal Cadet Deal Cadet
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narayana1dd249 wrote:

The statement itself is a intimation of your dues and at the time of applying the card you have agreed to the terms and conditions of late payment fee etc so you can’t blame anymore. The sms is only an additional gesture not a mandatory. So, instead of fighting you should have convinced them with some sob story to reverse the charges. Generally all banks except Axis accept such requests and reverse the finance charges but not GST.

It’s not a gesture. It’s a mandate. They have to dispatch the bill details to a person. They can’t generate the bill and keep it secretly on their app. They cannot charge without notifying you. Just like your electricity company sends you the bill via a post.
I tried to convince them but they don’t seem to care. This is actually the main concern.

Deal Newbie Deal Newbie
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satswid wrote:

It is regulatory requirement for these companies to notify users before levying an unnecessary charge.

Not following regulations just to get exorbitant fees from user is a fraud.
Followed by nullifying a user’s concern and putting the entire blame on him.

Not everyone has spare time to daily open the app and check if statements are generated or not..

Nobody goes to the Electricity company daily to check if the bill is generated or not. It’s not laziness. It’s common sense

It’s not an unnecessary charge and I do not blame them for charging a late fee as that is their policy and I agreed to it when I applied for the card.

Credit cards have a specific date on when the bill is generated every month so you don’t really need to log in to your app daily to check if the bill got generated, They also send you an email the very next day of bill generation.

And then they also provide 20 days from bill generation to pay off your bills which is generous enough. You can’t blame someone else if you yourself cannot remember your card’s due date for 20 days straight and still keep using it.
(It’s like me blaming my wife when I forget her birthday and then arguing with her that it’s her duty to remind me that it’s her birthday coz I don’t have time for such material things.. stuck_out_tongue )

SMS is really the worst way to keep track of something as important.

Set a calendar reminder for that date for every month so that it can remind you when your statement date comes.

Deal Cadet Deal Cadet
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satswid wrote:

It’s not a gesture. It’s a mandate. They have to dispatch the bill details to a person. They can’t generate the bill and keep it secretly on their app. They cannot charge without notifying you. Just like your electricity company sends you the bill via a post.
I tried to convince them but they don’t seem to care. This is actually the main concern.

they didn’t send you the bill/statement? no bill means how to pay. amex blunder.

Deal Cadet Deal Cadet
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satswid wrote:

Please be very aware of this new kind of fraud and avoid such hassle-prone services and cards. They are just like eagles who want to loot you.

We too had an acquaintance who never really checked back on why one of his children looked ethnically distinctly different than him. He didn’t really check till about the time of the child graduating out of high school.
At some point.. things led to a situation of him confronting his lifepartner of few decades and yes, it was confirmed that the biological father was elseone.

To this day, quite a few in our circle.. refer to him with sobriquets which loosely translate to imbecile, moron.

Deal Lieutenant Deal Lieutenant
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satswid wrote:

It is regulatory requirement for these companies to notify users before levying an unnecessary charge.

Not following regulations just to get exorbitant fees from user is a fraud.
Followed by nullifying a user’s concern and putting the entire blame on him.

Not everyone has spare time to daily open the app and check if statements are generated or not..

Nobody goes to the Electricity company daily to check if the bill is generated or not. It’s not laziness. It’s common sense

I think you used your ‘common’ sense when you signed the ‘uncommon’ document containing the detailed terms and conditions while applying for the card. And hence you are considering the levied charges as unnecessary and exorbitant.

They have not followed regulations is your interpretation using your ‘common sense’, but you seem to miss out that there could have been external factors due to which the message or notifications were not received by you.

You don’t have to open the app daily to check whether the statements are generated… The statement date is fixed every month and does not differ unless you have got it changed through some request. … It’s a matter of (financial) discipline to remember the payment due dates….People these days are lazy in remembering the payment due dates and instead blame CC cos for not reminding them, in case they miss the due date…. These are some lame excuses when it comes to financial discipline… Missing the dates by one or two days can be OK at times, but missing complete 18-20 days is pure negligence when handling finances.

Just because the CC company does not have similar options to hold you at ransom like an electricity company cutting off the power in case you don’t pay the dues after 20-30 days, does not mean that you are at full liberty to blame the CC companies for a risk / error happening at your end… The RBI has been very consumer centric and hence you have an option to approach them for your grievance.

I suggest you can build a simple tracker in Excel for such payments to be made or request the CC company to change the statement date to a date which you can easily remember. Just relax now and use this experience to strengthen your financial discipline.

Deal Cadet Deal Cadet
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soyoozms wrote:

We too had an acquaintance who never really checked back on why one of his children looked ethnically distinctly different than him. He didn’t really check till about the time of the child graduating out of high school.
At some point.. things led to a situation of him confronting his lifepartner of few decades and yes, it was confirmed that the biological father was elseone.

To this day, quite a few in our circle.. refer to him with sobriquets which loosely translate to imbecile, moron.

Nice one. Great to learn the story of your ‘acquaintance’

Deal Cadet Deal Cadet
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satswid wrote:

Nice one. Great to learn the story of your ‘acquaintance’

🙇🏻🤗

Likewise brother likewise.


Hope you work with building more redundancies in the system, for things to not fly under or crash!

Deal Cadet Deal Cadet
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Amex has one of the most friendly Customer support desks and in most cases they go out of their way to help / please the customers. If you’ve enrolled for email statements, you may have had a wrong spam filter or something in your email as I’ve never missed an email Credit Card statement from any bank so far. I’ve been using credit cards for many years now and from quite a few banks. SMS I’m not sure I receive from all banks reminding me about due date or anything. I think sending the bill copy is their part. Not beyond that..

Deal Lieutenant Deal Lieutenant
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Vishwa308 wrote:

Amex has one of the most friendly Customer support desks and in most cases they go out of their way to help / please the customers. If you’ve enrolled for email statements, you may have had a wrong spam filter or something in your email as I’ve never missed an email Credit Card statement from any bank so far. I’ve been using credit cards for many years now and from quite a few banks. SMS I’m not sure I receive from all banks reminding me about due date or anything. I think sending the bill copy is their part. Not beyond that..

True that !!! One of the best customer support experiences… Had got my annual fees waived off in one of the years when I was not able to meet the annual milestone…

Deal Subedar Deal Subedar
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Few years back I had a similar experience with SCB. I haven’t received the due SMS and got penalty added. I had got on call and explained honestly and accepted my mistake. Never tried to put the blame on them. Charge was reversed, however they couldn’t reverse the taxes.
Few months back I wasn’t getting SMS from Hdfc bank, it took some sweet time and had to get in touch with their technical team to get it rectified. But I always felt that it’s my responsibility to pay back whatever credit I take. Somehow you seem to put it the other way around.

Put reminders, add to your calendar or simply mark whatever calendar you have in your room. Even if you do not get anything from the bank, check account or call to know and pay your dues in time.

Lastly SMS do fail to deliver sometimes, that’s why there is a retry button on OTP pages, I am surprised that people don’t understand this simple logic.

Deal Cadet Deal Cadet
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Maverickz wrote:

I think you used your ‘common’ sense when you signed the ‘uncommon’ document containing the detailed terms and conditions while applying for the card. And hence you are considering the levied charges as unnecessary and exorbitant.

They have not followed regulations is your interpretation using your ‘common sense’, but you seem to miss out that there could have been external factors due to which the message or notifications were not received by you.

You don’t have to open the app daily to check whether the statements are generated… The statement date is fixed every month and does not differ unless you have got it changed through some request. … It’s a matter of (financial) discipline to remember the payment due dates….People these days are lazy in remembering the payment due dates and instead blame CC cos for not reminding them, in case they miss the due date…. These are some lame excuses when it comes to financial discipline… Missing the dates by one or two days can be OK at times, but missing complete 18-20 days is pure negligence when handling finances.

Just because the CC company does not have similar options to hold you at ransom like an electricity company cutting off the power in case you don’t pay the dues after 20-30 days, does not mean that you are at full liberty to blame the CC companies for a risk / error happening at your end… The RBI has been very consumer centric and hence you have an option to approach them for your grievance.

I suggest you can build a simple tracker in Excel for such payments to be made or request the CC company to change the statement date to a date which you can easily remember. Just relax now and use this experience to strengthen your financial discipline.

The terms mentioned that they will send notifications. So yes, I read it. So common sense is not missing this side. Also the error is not solely from my end. So why should I be one suffering alone? If I would have forgotten about this card, they would have kept charging me interest, until it becomes exhorbitant, just like Citi did with my friend. No communication until their agenda/target is met.
There is something called fair practices code set up by RBI, which these banks like to play around with at their convenience.
Better to avoid the bank who doesn’t even accept the error on their systems even though their CC confirmed the same. This is text-book malpractice designed to loot people who don’t track their multiple cards and trust the bank to send them the communication.
My message is for these people to avoid such banks/financial orgs.

If you’ve got enough time to track each card and due date, good for you.

Missing