If you’ve received a lawsuit notice from American Express, don’t panic. Many people find themselves in this situation due to unpaid credit card debts.
While it may understandably feel like a scary and stressful situation, knowing your rights and how to respond can make a big difference. Learn more about why American Express might sue you, how to respond, and how to protect yourself.
Who is American Express?
American Express (Amex) is a global financial services corporation headquartered in New York City, renowned for its credit and charge card offerings, as well as travel-related services. Established in 1850 as a freight forwarding company, Amex has become a leading issuer of personal, small business, and corporate credit cards.
American Express Reviews and Complaints
On the BBB website, American Express holds a customer review rating of 1.09 out of 5 stars, based on 502 reviews. Common complaints involve issues with customer service, billing disputes, and challenges in resolving fraudulent charges. Additionally, the company has closed nearly 5,000 complaints in the past three years, with 1,906 closed in the last 12 months.
The CFPB’s complaint database also includes numerous entries related to American Express, primarily concerning credit card products. Common issues reported include billing disputes, problems with rewards programs, and issues with resolving fraudulent transactions. In response to some of these complaints, the CFPB has taken enforcement actions against American Express. For instance, in 2013, the CFPB ordered American Express to refund an estimated $59.5 million to more than 335,000 consumers for illegal credit card practices, including unfair billing tactics and deceptive marketing related to credit card add-on products.
What Happens If You Get Sued by American Express
Reasons American Express Might Sue You
One of the most common reasons you might be sued by Amex is if you have unpaid credit card debt. If you have an overdue balance on an Amex credit card and fail to make payments for an extended period, Amex may file a lawsuit to recover the unpaid amount. This typically occurs after repeated attempts to collect the debt, including calls and letters.
Additionally, if Amex sells or assigns your debt to a collection agency, and you do not respond to the agency’s collection efforts, that agency may file a lawsuit on behalf of Amex or in its own right to recover the debt.
Understanding How American Express Collects Debt
When you first miss a credit card payment, American Express begins by sending reminders through statements, emails, or phone calls to inform the you of the overdue amount. You’ll also incur late fees and penalty interest.
If that debt goes unpaid or you continue missing payments, Amex will then intensify its efforts, which may include more frequent communications. After about 90 days of non-payment, Amex may assign the debt to an external collection agency.
Finally, if these collection efforts fail, Amex may initiate legal proceedings to recover the debt.
What Should I Do If I Receive a Letter or Call from American Express?
Receiving a letter or call from American Express regarding an outstanding debt can be concerning. But it’s important to handle the situation right away. Here are the steps you should take:
- Verify the communication: First, confirm that the communication is genuinely from Amex. Be cautious of potential scams; legitimate correspondence will typically include your account details and Amex’s official contact information. When in doubt, use the customer service number on the back of your card or visit the official Amex website to verify the legitimacy of the contact.
- Respond promptly: Ignoring debt-related communications usually only make the problem worse. Responding right away shows you’re willing to address the issue.
- Validate the debt: Under the Fair Debt Collection Practices Act (FDCPA), you have the right to request validation of the debt. This involves asking Amex to provide proof that you owe the debt in question. Send this request in writing within 30 days of the initial contact.
- Maintain records: Keep detailed records of all communications with Amex, including dates, times, and the names of representatives you speak with. Also, keep copies of all letters, emails, and documents related to the debt and your communications with Amex.
What Should I Do If I Receive a Summons?
If you receive a summons from American Express (or any creditor), it’s crucial to respond correctly. Here’s a step-by-step guide to help you handle this situation:
1. Review the Summons Carefully
The summons will specify why you’re being sued, the amount Amex is claiming, and the date by which you need to respond. That’s typically 20 to 30 days. Missing this deadline could lead to a default judgment against you.
2. Respond
Ignoring a summons won’t make the issue go away. A non-response usually results in a default judgment, allowing Amex to take actions like garnishing your wages or levying your bank account.
3. Gather Documentation
Collect account statements, receipts, correspondence, and any documents related to your Amex account. These can help verify the debt and any payments you may have made. Look for discrepancies, such as incorrect charges, payment records, or fees, which may help you dispute the claim.
4. Seek Legal Advice
An attorney experienced in debt collection defense can help you evaluate your case and guide you on the best course of action. They can also help you negotiate with Amex or represent you in court.
If you can’t afford a private attorney, seek assistance from a legal aid organization or consumer protection agency.
Knowing Your Rights Against American Express
When dealing with debt collection or a lawsuit from American Express, you have important rights that help protect you from unfair practices. Under the Fair Debt Collection Practices Act (FDCPA), collectors must treat you fairly, avoid harassment, and can’t misrepresent information.
You also have the right to verify and dispute the debt. Within 30 days of initial contact, you can request debt verification, which requires Amex or the collection agency to provide documentation proving you owe the debt and the amount claimed. Additionally, if a lawsuit is filed, you are entitled to a fair legal process, including receiving a summons and responding in court.
If your rights are violated, you can file a complaint with the Consumer Financial Protection Bureau or consider suing the collector for damages. Again, it’s recommended that you consult a debt help attorney to help you determine the best course of action.
How to Negotiate with American Express
If American Express is suing you, you still have options to negotiate and potentially resolve the debt before or during the legal process. Here’s a breakdown of the strategies you can use:
1. Request a Payment Plan
You can try to negotiate a payment plan that allows you to pay off the debt over time. This approach can be helpful if you’re unable to pay the full amount upfront but can make consistent monthly payments.
American Express may be willing to accept smaller monthly payments based on your financial situation. Be sure to negotiate terms that are manageable for you to avoid defaulting again.
2. Offer a Lump-Sum Settlement
In some cases, Amex may agree to a lump-sum payment that’s less than the total amount owed, especially if they believe it’s unlikely they’ll collect the full amount otherwise. Typically, this is a one-time payment.
When making a settlement offer, assess what you can afford and be realistic. A common starting point is around 40-60% of the total debt, though the final settlement amount will depend on Amex’s policies and your specific situation.
3. Request a Hardship Program
If you’re experiencing financial hardship (e.g., due to job loss, medical bills), Amex may be more flexible in their negotiations. They could offer reduced payments, temporarily lower interest rates, or waive fees.
Providing evidence of your hardship, such as medical bills or proof of unemployment, can support your request for a more favorable agreement.
American Express phone number and address
American Express’s corporate headquarters is located at:
American Express Company
200 Vesey Street
New York, NY 10285-3106
Phone Number: 1-800-528-2122
For customer service inquiries, it’s recommended to call the number on the back of your American Express card or visit their Contact Us page for specific contact information related to your account or services.
How Can a Debt Settlement Attorney Help?
Attorneys understand how creditors like Amex operate and can use this knowledge to negotiate a more favorable settlement. They can also review the details of the lawsuit and your financial situation to determine your best options, whether that’s negotiating a settlement, challenging the debt, or pursuing a payment plan.
Tayne Law Group offers a free phone consultation with an experienced debt relief team member to go over what options may be available to you to help resolve your debt. Whether you’re struggling to keep up with your bills, have a debt in collections, or have been sued by Discover Bank, there’s a good chance our law firm can help. Contact our offices by calling (866) 890-7337 or filling out our short contact form. We never share or sell your information and all conversations are confidential.
