In MrConsumer’s American Express Optima bill for February, buried on page seven of a 10 page statement, was a “Notice of Changes to Your Account“. The changes were precipitated by “the challenging environment and the increasing costs of doing business”, the company said. Whenever a credit card company uses the word “changes”, it is a not good thing for customers. It usually means higher prices or lowered benefits.
Typical of most credit card issuers, they give you the new language, but generally don’t explain how the terms are different from before. So, unless you have the cardholder agreement that you received when your card was first issued, you may have no idea how exactly you are being screwed affected.
Besides presumably cutting back on their luggage and travel insurance benefits and raising finance charges for some cardholders, the notice contained an interesting section about telephone communications which is replacing the old one. To see just how it changed, I tried to find my original cardmember agreement, but was unable to. I checked AMEX’s website, and it was not there either. I called an AMEX representative and asked for a copy to be emailed, but alas, they can only do snail mail which will take seven to 10 business days. I also asked him to read a certain portion of it to me. He could not. They don’t even give their own representatives access to the contract that governs the card.
The change I was trying to find out about concerned a deletion of the old “Telephone Communications” section of the agreement, which presumably only said that you agree that they can record telephone conversations you have with them. Here is the substitute language:
*MOUSE PRINT:
“You agree that from time to time we may monitor and/or record telephone calls between you (or Additional Cardmembers on your Account) and us to assure the quality of our customer service or as required by applicable law. You authorize us to call or send a text message to you at any number you give us or from which you call us, including mobile phones. You authorize us to make such calls using automatic telephone dialing systems for any lawful purpose, including but not limited to: suspected fraud or identity theft; account transactions or servicing; offers of American Express products and services; and collecting on your account. You authorize us to place prerecorded calls in connection with the status of your account, or security and identity theft matters. You agree to pay any fees or charges you incur for incoming calls or text messages from us without reimbursement.”
Translation: If you ever gave AMEX your cellphone number or called them from it, you are permitting them to call you or text you on your cellphone, with among other things, advertising messages. And you have to pay the cellphone charges that those calls and texts may incur.
By notifying you of the changed language and coupling that with your pre-agreement to allow AMEX to change their contract with you at anytime, AMEX could easily assert that any laws that may require you to give permission (“express consent”) to receive unsolicited promotional calls on your cellphone have been complied with. One would hope that a court would never let your silence constitute consent in the situation described. [ See basic rules about calling and texting to cellphones. ]
Now back to that conversation with AMEX’s customer service representative. At the end of the call (in which I had never mentioned the specific subject matter in the agreement that I was interested in), he asked if he could update my account with … my cell number! “Like hell,” I said. “I just read the new rules that by giving you that number you can spam me and run up my cell bill.”
Update: American Express has responded to this issue:
We want to point out that Cardmembers do have some choices about receiving communication from American Express:
If a Cardmember doesn’t want to receive marketing offers, including offers via land or cell phones, they can select not to receive them by logging onto americanexpress.com/communications and we won’t contact them with any offers. Of course, we will contact Cardmembers for service related issues, for example if we detect fraud.
We don’t send marketing or promotional offers via text message unless a Cardmember enrolls to receive offers. While we may text a Cardmember for servicing related issues, within the text message Cardmembers are given the option to unsubscribe. — Vice President, Public Affairs
Actually, I think I’d want this feature, if they’re doing what I think they’re doing. Imagine an opt-in service that automatically sends you a text detailing any transactions involving your card over a set amount, say $500.
Normally, you’d make a purchase, and then you’d receive a text a couple minutes later with the purchase details. However, if you get a text when you didn’t make a purchase, then you can report it right away, which helps both you and AMEX.
Mike@1: The problem is that they’re taking the right to spam you whatever they want, including offers for their travel/credit secure/insurance/whatever else services that you probably don’t want…
I think there’s a separate opt-in for text msg alerts of large purchases on their websites.
The best thing to do is dump AMEX! There are a lot of other credit card companies who are much better, including international use.
Look, AMEX knows if they constantly spam your cellphone and cost you a fortune in texting fees that you are going to get pissed off cancel your account and go elsewhere.
Amex wants to be able to charge you for their advertising. How do you show your objection?
Cancel your card. Visa and MC are also accepted internationally and have a much larger merchant base than AMEX.
Show them what you think of their new terms.
Another of the myriad reasons NOT to have cell phones and credit cards.
Beware that cancelling your credit card will hurt your FICO score, especially if this is one of your oldest accounts. I would never give my cell phone (if I had one) to a CC company in the first place.
By reading their PR response, I think it is actually a good service they’re providing. At least they’re offering the option to opt out.
The important thing is to call American Express and let them know how
feel. If there is an overwhelming tide of consumer objections then
they will change it. If their call centers are deluged with calls they
will take notice.
They ALLEGEDLY allow you to opt out through their webpage, but I’ve often come upon businesses offering the same thing, except that the page doesn’t work, it’s not there, etc., etc.
I recently obtained an AMEX card, due to their offer of paying 5% rebates on all gas purchases. This was last summer, when gas was pushing $4 a gallon.
Last month, just for the heck of it, I reconciled the rebate postings with my purchases and discovered that several transactions were not being rebated at the promised 5% but at 1%.
Calling AMEX to complain resulted in a complex explanation about how merchants code the transactions as “general merchandise” purchases and not as fuel purchases, etc. These transactions were all made at the gas pumps. They even showed this on the statement with the wording “AFD” or “automated fuel dispenser” but were still rebated at the non-fuel purchase level.
AMEX simply said they were not responsible and placed the blame on the merchants for the discrepancy. No adjustments were offered. Once this was pointed out, it should have been their responsibility to contact those merchants about the coding issues.
I did call 2 of the offending merchants, and they of course shifted the blame to their 3rd party processors, blah, blah, etc. Both of them promised to call me back about those issues, but neither has done so as of 3 weeks later. They have lost my business for now in any case.
A funny thing happened the following week: AMEX called me out of the blue to ask about my satisfaction with their new card! I let them know about my dis-satisfaction with them shifting the burden on to the merchants, when the transactions clearly showed those purchases as fuel. I got immediate credits for the missing rebates, and apologies for the problems.
Seems their marketing division has more power to make adjustments and/or corrections than customer service does! I mentioned this issue because AMEX supposedly has a reputation for good customer service. In my case it took their marketing and satisfaction survey folks’ action to deal with my problem effectively.
I suspect that many others are being denied the promised rebates, so it is imperative to check your statements for accuracy. This really applies to any CC or merchant, bank statements, etc.
As for this thread about possible spamming my cell phone, I don’t give out my cell number. You see, my land-line automatically forwards calls to my cell if I”m not in the office. So they don’t need to know my cell phone number, and any attempts to text me will fail. LOL
It’s best to steer clear of credit card offers. Sadly, the average American owns 8 credit cards….sooooo easy to get in trouble.
Face it, AMEX is just bad news all the way around…
For two years now I have had no problems with any credit card companies because I am on the Dave Ramsey get out of debt plan and have since stopped using my credit cards. I have cut them up and as I paid them off I canceled the accounts. The only credit I will use for now on is a 15 year fixed rate mortgage with 20% cash put down. I feel so much less stress not having to deal with any of these crooked companies.
I just got the same notice from Nordstrom Visa.. so it’s not just Amex doing it!
amazing way of reaching a highly targeted audience of potential buyers. If done right, you will have a high quality and responsive customer base to communicate with, provide value to, and market to for years to come.