Not upheld: know your customer review process and account suspension complaint against American Express Services Europe Limited

Decision detail

Summary

Mr D complained about American Express suspending his additional cardholder's credit card account following a know your customer review. American Express sent three emails requesting verification of information, which were treated as spam by the additional cardholder's email provider. When the information was not provided, the firm suspended the account and sent a letter notifying of the suspension. The account was reinstated two days after Mr D called to enquire about it. The ombudsman found that American Express was acting in accordance with its regulatory obligations and that the suspension was a proportionate response to non-compliance with the verification request. The complaint was not upheld.

The Ombudsman's reasoning

American Express was acting in accordance with its regulatory know your customer obligations when requesting verification and suspending the account. The firm sent three emails to the correct email address provided by the additional cardholder, and the fact that these were treated as spam by the email provider is not American Express's responsibility. A letter was also sent to the correct postal address. The suspension was a proportionate escalation given that information had not been provided despite multiple requests. The Consumer Duty requires firms to provide post-sale support without creating unreasonable frictions, but the ombudsman found that suspension was a reasonable and proportionate response to non-compliance with a regulatory requirement. While some inconvenience was caused, this does not constitute unfair treatment by the firm.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website