American Express to charge £20 “dormancy fee”

| September 1, 2009 | 23 Comments
”American

American Express has announced plans to start charging customers who no longer use their Amex card.

The £20 per year “dormancy fee” will be charged to all Platinum Cashback credit card holders.

According to Amex’s website, the fee is charged to customers “if the aggregate amount of all transactions [on their account], other than cash advances & balance transfers, that have taken place during the preceding 12 months is £0.”

A spokesperson for the company said the “vast majority” of customers will not be affected by the fee.

Credit card comparison site moneysupermarket.com said the charge comes as “no great surprise”.

“We expect to see more providers introduce similar charges as they seek to recoup the losses they are making on the credit card lending,” said Peter Harrison, moneysupermarket.com’s credit card expert.

Keeping dormant accounts open costs credit card companies money, Harrison explained.

Customers wanting to avoid the charge need only to use their Amex card once per year.

Amex also announced that it has also reduced the top rate of cashback on its Platinum card to 1.25%.

EDITORS NOTE: I have no idea why so many American Express customers think Finance Markets is connected to the credit card - we’re not.

So please stop trying to publish your account numbers and names on our website, as this is plainly a security risk to you!!

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Comments (23)

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  1. Kim Clifford says:

    You have put on my statement that if I want to close the account and have this £20 Do0rmancy fee removed to visit this website, but on visiting this website there are no instructions on how to do so - is this one of your “cunning plans”. As you told me to visit this website the actions required to close accounts should be a lot lot clearer, especially for people who are not too good with computers like me!!

  2. Edward John Lowe says:

    I do not want a card.I have never asked for a card.I am certainly not paying any fee
    Just take me off all your lists NOW
    John Lowe

  3. Howard Mitchell says:

    Would like to cancel my account please tell me how do I do this ? And have this fee removed, thank you

  4. mr jeffrey harvey says:

    I WISH TO CANCEL MY AMEX CARD RIGHT AWAY.

  5. Stephen John Andrews says:

    I closed this account 3 years ago !! Please remove this £20 fee and close my account
    Thankyou
    I await your response and statement of account showing 0
    Thankyou
    S j Andrews

  6. mr robert shaw mellor bb48rg says:

    please cancell my £20 fee and close credit card account
    i no longer req it… thank.you.

  7. V. E. Gale says:

    I think this ‘dormancy charge’ is outrageous and I am cancelling my account. My card will be returned in tne post.

  8. Peter McGuirk says:

    I wish to close my account and cannot see on the dormancy fee page where to close it. PLEASE HELP

  9. Wilfrid Knowles says:

    I no longer use my card and would like to close my account and have the dormancy fee cancelled

  10. stephen bevan bridgeman says:

    cancel card & waive dormancyfee.

  11. stephen bevan bridgeman says:

    I wish to close our account and waive dormancyfee. S.B.Bridgeman.

  12. Mr R W Hodkinson says:

    Told to go to this website to remove fee, but not clear how to do it.

  13. wilfrid M Dent says:

    the american express card i was useing was cancelled and destroyed nearly 12 months ago. please confirm Wilfrid M Dent.

  14. Wilfrid Midcalf Dent says:

    The American Express card I was useing was cacelled and destroyed nearly a year ago.
    W. M. Dent

  15. paul fitzgerald says:

    Please remove my dormancy fee as I no longer have my american express card

  16. Alison A Newton says:

    Please send instruction s to close my account immediately and therefore avoid paying £20 fee.

  17. Mr.Jaswant Singh Kalsi says:

    I am not happy with this £20 charge as dormancy fee. I have credit balance on my card from long time, how about some interest on it if that’s the case. If people start charging without asking customer’s first that’s the time you loose faith in that company.After this charge I am not very happy and like to return my card and request amex to refund my money £43.37 which they have for more than 12 months.look forward to hear from you.
    Thanks

  18. Neville Sheldon says:

    Dormancy fee ???
    What is this about…. I don’t use your service never have done and no intention of doing so.
    If you don’t get rid of this immediately I will pass to lawyers.
    Furthermore an apology should be made
    Neville Sheldon

  19. Mr Alexander Mall (3791-0303368-12001) says:

    Please as I am no longer your customer and I have not use the credit card as you could see from the account . I wish to say that please close my account and remove the dormancy fee. I would be much obliged and thankfull for your help . Wish the company well.

    regards

  20. Mr Alexander Mall (3791-0303368-12001) says:

    Please note that I am no account userr could you close this account and remove the dormancy fee. I would be much obliged . Thank you very much for your help.

  21. mr john harris says:

    i cannont understand the reasonings for charging a drormancy fee for not using my credit card this i applied for in 2004 and have never used it, so therefore i wish to cancel this credit card.

  22. donoughmore says:

    I just want to cancel my card and avoid the £20 charge

  23. BELISCO MATIAS SEQUEIRA says:

    I wish to close the account and have the fee removed.

    Many thanks,

    Belisco

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