Not upheld: account cancellation and payment access following correction of interest-charging error complaint against AMERICAN EXPRESS SERVICES EUROPE LIMITED trading as American Express (AESEL)

Decision detail

Summary

Mr M complained that AESEL cancelled his credit card account after discovering it had not charged interest since 2014, leaving him without online access to make payments and requiring him to contact AESEL monthly or risk late payment charges. AESEL had notified Mr M of the error in April 2025 and offered him the choice to cancel the account by 1 June 2025 to avoid future interest charges, with no retrospective interest applied. Mr M called on 23 April 2025 to discuss options and chose to cancel. The ombudsman found AESEL's actions fair, noting that Mr M was informed of the loss of online access before confirming cancellation, and that AESEL provided alternative payment methods including standing orders to prevent missed payments. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found it reasonable for AESEL to identify and correct the interest-charging error, and fair to offer Mr M the choice to cancel without retrospective interest charges. Mr M was informed before cancellation that he would lose online access. The ombudsman considered that Mr M chose to cancel the account of his own volition after being given the option to keep it open and pay interest. While acknowledging the inconvenience of losing online payment access, the ombudsman found that AESEL provided reasonable alternative payment methods (calling, bank transfer, or standing order) and that Mr M receives monthly statements showing amounts due. The standing order option was identified as a reasonable workaround to prevent missed payments.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website