Sued by American Express? How to Settle Your Debt

Summary: Being sued by American Express can put you in a stressful situation. Be sure to file a written Answer to avoid a default judgment, then reach out to Amex to negotiate and settle the debt. If you’re facing financial hardship, they will probably settle for less.

If you've seen an American Express ad, you undoubtedly have heard their tagline: Don't Live Life Without It. Here's what you can live without: being sued by American Express. But if American Express has sued you, this isn't the time to panic.

This is the time to keep your head about you. Proper decisions followed by decisive action by the consumer are imperative. Being involved in an American Express lawsuit can be intimidating for most people, but the consumer who takes action to develop a strategy will get the best possible outcome.

If you received a Summons for an American Express lawsuit, you must gather as much information on the company as possible. Keep in mind, if American Express has filed a suit, they are prepared to do whatever they deem necessary to collect any unpaid balances. Acquiring as much information as possible can lead to the strongest defense and a chance to resolve the debt quickly.

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What is American Express?

American Express, commonly known as Amex, is a multinational financial services corporation headquartered in New York City. Founded in 1850, it is one of the oldest and most recognized financial brands in the US and the world.

Amex is best known for its charge cards, credit cards, and travel-related services. Its products cater to individual consumers and businesses, offering a range of premium benefits like rewards programs, travel perks, and concierge services. The company also provides merchant services, allowing businesses to accept American Express cards as a payment method.

Amex is distinctive in the financial industry for its emphasis on high-quality customer service and exclusive benefits, particularly for its premium cardholders. Its flagship products include the Platinum Card, Centurion Card (also known as the "Black Card"), and various co-branded credit cards.

Use the contact information below to contact Amex headquarters. For other locations, visit the company’s website.

Address: 200 Vesey Street, New York, NY 10285-3106
Phone: 212-640-2000

Amex also lists different phone numbers for specific services. For example, credit card holders use different phone numbers than travel services clients for prompt assistance.

Who does Amex collect for?

American Express (Amex) collects debts from customers who owe money on their credit or charge card accounts. As a financial institution, Amex handles debt collection in several ways.

Amex typically attempts to collect overdue balances through its internal collections department. Collection efforts involve contacting the cardholder via phone, email, or written communication to resolve the outstanding amount. Sometimes, Amex may offer payment plans or settlements to help cardholders manage their debt.

If the debt remains unpaid after several attempts, Amex may assign or sell the debt to third-party collection agencies. These agencies then pursue the debtor for payment. In extreme cases, Amex may initiate legal action to recover the debt by filing a lawsuit to seek judgment against the debtor.

If you’re facing financial difficulties and unable to make payments, it's crucial to communicate with Amex to avoid escalation. They may offer options to help you manage your account and avoid further complications.

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Read Amex reviews online.

Learn more about American Express by reading what fellow consumers think of the company. Find the reviews on the following platforms:

American Express reviews on the Better Business Bureau
Amex reviews on the CFPB database

Consumers have had varied experiences with the company. However, it’s refreshing to see that engaging Amex leads to pleasant results. A user named Calvin M. had this to say about American Express:

“I've been having many bad luck with many financial institutions recently and it's started to make me appreciate what American Express has to offer. I've had to dispute four separate charges on my new **** card, and each time, the process was simple, easy, and seamless. Customer service listened to me intently, took genuine care in answering my questions, and concisely informed me they were unable to give me information they did not have. By far the best customer service I've experienced in the past year.”

Seeing how helpful contacting Amex is can encourage you to reach out and find a solution for your debt.

How to respond if you’re sued by American Express

If the AMEX collection department fails to collect the debt, the company may decide to sue. Generally, if the unpaid balance is small, they will simply write it off. If the balance is significant, they may proceed to litigation. The exact amount would differ depending on the jurisdiction of the suit, which is usually where the consumer lives.

Once they decide to move forward, you will be served a Summons to appear in court to “answer” the specific allegations in the Complaint. The worst thing a consumer can do is to ignore the Complaint. The weeks following the service are a critical period for the consumer. You have every right to answer every single allegation made against you. If you fail to take this action, the most likely outcome is that American Express will file a motion with the court to secure a summary judgment.

Use SoloSuit to avoid a summary judgment.

If the court rules in Amex’s favor, the company may take some, if not all, of the following actions against you to satisfy the judgment:

Place a lien on your personal property
Freeze your bank accounts
Garnish your wages

Do not let this happen to you. Take action and respond to the Complaint.

Settle your debt with American Express

Settling debt with American Express (Amex) typically involves negotiating a reduced payment to resolve the balance owed. Here's how to proceed:

Assess your financial situation: Review your total debt and determine how much you can afford to pay. Ensure you have documentation of your income, expenses, and financial hardships (if applicable).
Contact Amex: Use the contact details on your statement or Amex’s website to call the customer service or collections department. Be prepared to explain your financial situation and why you’re unable to pay the full balance. If they are willing to consider a settlement, proceed to the next step.
Propose a settlement: Start by offering a percentage of the debt. A 30%-50% offer is reasonable enough to kick off the negotiations. Remember, Amex will likely counter your initial offer, so leave some room for upward negotiations. Be polite and firm. When you reach your budget’s limit, make it clear that this is what you can afford. Do not agree to a settlement amount you may default on.
Get the agreement terms in writing: Before making any payment, request written confirmation of the settlement agreement, including the agreed amount, the payment deadline or schedule, and confirmation that the remaining balance will be forgiven.
Pay the debt: Pay as agreed and retain proof of payment.

Remember to check your credit report regularly to ensure Amex changes the tag on your account from “account in collections” to “settled.”

To learn more about how to negotiate with American Express, check out this video:

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Frequently asked questions about being sued by American Express

Does American Express sue for credit card debt?

Yes, American Express sues consumers for unpaid credit card and charge card debt, typically when balances are significant relative to the cost of litigation. Amex often pursues lawsuits directly through outside law firms such as Zwicker & Associates rather than selling the debt. Smaller balances are more often written off, while higher-balance accounts are more likely to result in a lawsuit being filed.

When does American Express send debt to collections?

American Express typically refers overdue accounts to its internal collections department after 30 to 60 days of non-payment and charges off the account at 180 days under federal regulations. Unlike most major issuers, Amex frequently retains charged-off debts in-house through its Advanced Collections Mitigation Unit or assigns them to outside law firms rather than selling to third-party debt buyers.

Does American Express sell debt to collection agencies?

American Express sells some charged-off debt to third-party buyers but retains a higher percentage in-house than most major credit card issuers. Amex commonly places accounts with outside collection firms such as Gatestone & Co. or directly with law firms like Zwicker & Associates for litigation. This means lawsuits filed in Amex's name are often more serious than typical debt-buyer suits.

Will American Express settle credit card debt for less than I owe?

Yes, American Express settles credit card debt for less than the full balance, though Amex is generally considered a firmer negotiator than other major issuers. Settlement offers are most likely to be accepted after the account has been charged off or a lawsuit has been filed. Documented financial hardship significantly improves the likelihood of acceptance and the percentage reduction offered.

What percentage will American Express accept as a settlement?

American Express typically accepts settlement offers between 40% and 60% of the original balance, though the exact percentage varies based on account age, documented hardship, and whether a lawsuit has been filed. A 30% to 50% opening offer is reasonable to begin negotiations. Once a lawsuit reaches active litigation, Amex may accept lower settlements to avoid further legal costs.

What is the American Express Financial Relief Program?

The American Express Financial Relief Program, also called the Customer Care Program, is the bank's hardship option for cardholders facing documented financial difficulty such as job loss, medical emergencies, or natural disasters. Approved participants may receive reduced minimum payments, lowered interest rates, or temporary payment deferrals for up to 12 months. The principal balance is not forgiven through the program.

How do I contact American Express about my debt?

American Express's main customer service number is 1-800-528-4800, listed on the back of every Amex card. For debt issues, request a transfer to the Financial Relief Program or Customer Care team. If your account has been charged off, contact the Advanced Collections Mitigation Unit. If a lawsuit has been filed, contact the plaintiff's law firm of record, often Zwicker & Associates, instead of Amex directly.

What should I do if I am sued by American Express?

If American Express has filed a lawsuit against you, file a written Answer with the court before your state's deadline, typically 14 to 30 days from the date of service. In your Answer, respond to each numbered claim, raise affirmative defenses such as expired statute of limitations or improper service, and serve a copy on Amex's attorney to prevent a default or summary judgment.

What law firms does American Express use to sue?

American Express most commonly retains Zwicker & Associates as outside counsel for debt collection lawsuits across multiple states. Amex also works with regional firms including Mandarich Law Group, Stenger and Stenger, and Nelson & Kennard depending on jurisdiction. If you have been served with a lawsuit, the plaintiff's attorney listed on the Complaint is the party authorized to negotiate settlement, not Amex directly.

Can American Express get a default judgment against me?

Yes, if you do not file a written Answer to an American Express lawsuit before your state's deadline, Amex can request a default or summary judgment from the court. Once granted, the judgment gives Amex legal authority to garnish up to 25% of your disposable wages, freeze your bank accounts, and place liens on your real estate, depending on state law.

What is the statute of limitations on American Express debt?

The statute of limitations on American Express credit card debt varies by state, ranging from 3 to 10 years, with most states between 4 and 6 years. The clock begins on the date of your last payment or account activity. Once the statute of limitations expires, Amex can be barred from suing to collect, and expired SOL serves as a strong affirmative defense in your Answer.

Will American Express offer a payment plan instead of settlement?

Yes, American Express may offer payment plans through its Financial Relief Program, particularly before charge-off. Payment plans typically run 12 to 36 months and require paying 70% to 100% of the balance over time, compared to 40% to 60% typical of lump-sum settlements. Amex generally closes the cardholder account when a hardship-based payment plan is approved.

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