Not upheld: unfair account closure and service complaint complaint against American Express Services Limited

Decision detail

Summary

Miss M complained that Amex unfairly closed her credit card accounts without proper explanation and provided poor service. She had a perfect payment history and was a long-standing customer. Amex closed her supplementary cards in May 2025 and then her entire accounts in June 2025, both with two months' notice, and suspended the accounts during the notice period. The ombudsman found Amex acted fairly within its contractual rights, as the terms permitted account closure without reason upon two months' notice. The ombudsman reviewed confidential information supporting Amex's decision and found no unfairness in the account blocking, fee charging, or communication provided.

The Ombudsman's reasoning

The ombudsman found that Amex's terms and conditions explicitly allow either party to end the agreement without giving reason, provided two months' written notice is given. Amex complied with this contractual requirement. The ombudsman reviewed confidential information from Amex and found no evidence the decision was unfair. The ombudsman noted that credit card providers have the prerogative to decide whether to continue lending. The communications from Amex were not confusing as they clearly distinguished between supplementary card closure and subsequent full account closure. Fees charged during the notice period were permitted under the terms and conditions, and Miss M retained access to some benefits.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website