Not upheld: default application and communication regarding default complaint against American Express Services Europe Limited

Decision detail

Summary

Mr B complained that AMEX applied a default to his credit card account in January 2025 without suitable communication. Mr B had entered a payment break in August 2024 due to financial difficulties, which ended in October 2024. After no payments were received following the payment break, AMEX sent a Notice of Default on 24 December 2024 and referred the account to a debt collection agency on 15 January 2025. Mr B claimed he did not receive these letters until after the default was applied. The ombudsman found that AMEX had taken a fair approach by sending appropriately timed, correctly addressed letters and making multiple phone call attempts to engage with Mr B, and that Mr B had sufficient knowledge that payments were required. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that AMEX took a fair and reasonable approach by sending appropriately timed and correctly addressed letters, making multiple phone call attempts to contact Mr B, and providing clear notice of the consequences of non-payment. Although Mr B claimed not to receive the letters, the ombudsman held AMEX not accountable for postal delays. The ombudsman considered that Mr B had sufficient interaction with AMEX regarding the payment break to reasonably know that payments were required after October 2024. The ombudsman acknowledged Mr B's concerns about unsolicited calls but found that given the lack of payment and substantive response, phone calls were a reasonable engagement approach.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website