Not upheld: Account administration errors complaint against American Express Services Europe Limited

Decision detail

Summary

Mr A applied for and was accepted for an American Express credit card on 29 December 2025, but cancelled it shortly after due to the annual fee. When he requested reinstatement the same day, he was given incorrect information about reapplication timelines (told to reapply immediately, then 72 hours later, when the actual policy required 90 days). Mr A's subsequent application was rejected, though it did not result in a credit file search. American Express reinstated his original account as a gesture of goodwill and paid £30 compensation. The ombudsman found the compensation fair and reasonable, as the firm's 90-day policy was reasonable, the second application caused no credit file impact, and American Express was unaware of Mr A's mental health condition when the error occurred.

The Ombudsman's reasoning

The ombudsman found that while American Express provided incorrect information about reapplication timelines, this alone did not warrant additional compensation beyond the £30 already paid. The 90-day waiting policy itself was a reasonable commercial decision. The second application did not result in a credit file imprint, and American Express cannot control how credit reference agencies report searches. The firm's reinstatement of the original account as a gesture of goodwill was a fair response. Although Mr A experienced distress, American Express was unaware of his mental health condition when making its initial error, so could not have tailored its response accordingly at that time.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website