Offer Fulfilled! American Express India – Credit Card Wrongful Charges & RBI Violation!

[SomChoudhury]

I am facing serious billing issues with American Express India, where they wrongfully deducted Credit Card EMIs for a refunded transaction and imposed unjustified charges.

🔴 Wrongful EMI Deductions on ₹28,498​

• Transaction Date: September 30, 2024 – Flipkart purchase of ₹28,498.
• Refund Date: October 7, 2024 – Flipkart refunded ₹28,498.
• Issue: Despite the full refund, AmEx continued to deduct EMIs for October, November, December, and January, instead of adjusting the refund.

🔴 Unjustified ₹9,554.79 Charge​

• Charge Date: January 28, 2025.
• Charge Type: "Installment Plan Accelerated/Recalled."
• Issue: AmEx imposed this fee without any breakdown or justification, despite the refund already being processed months earlier.

🔴 Failure to Inform About EMI Foreclosure Rules​

• Foreclosure Request Date: January 20, 2025.
• Issue: AmEx never informed me that a manual foreclosure request was required within 30 days of the refund. They later justified the extra charges by claiming I should have "known the Terms & Conditions."

🔴 No Transparency in Refund Adjustments​

• RBI Master Directions (Para 10(g) & 10(h)) clearly state that refunds should be adjusted against outstanding dues before further charges are applied.
• AmEx, however, claims refunds are not automatically adjusted, contradicting RBI regulations. Their response? "All charges are valid as per AmEx policies."

📢 Why is AmEx charging EMIs on a refunded transaction and imposing extra foreclosure fees without any prior communication or justification?

💬 Has anyone else faced similar issues with AmEx EMI refunds and wrongful deductions?

 

[Anupama_Jha]

Seems issue from both sides. You and amex as well. @BestBanker Pls advice

 

[zoro]

Seems issue from both sides. You and amex as well. @BestBanker Pls advice

I don't think this is an issue from Amex, I also had a similar case with kotak where the order was cancelled for an emi transaction and had a similar situation.

Later I called kotak and they explained same that transaction refund does not mean that the emi is cancelled, we need to call the customer care and ask them to cancel the emi and it's tenure, you can try arguing and ask for reversal of charges, with kotak i got refund of everything except for IGST(this was 3 years ago I think).

 

[Anupama_Jha]

I don't think this is an issue from Amex, I also had a similar case with kotak where the order was cancelled for an emi transaction and had a similar situation.

Later I called kotak and they explained same that transaction refund does not mean that the emi is cancelled, we need to call the customer care and ask them to cancel the emi and it's tenure, you can try arguing and ask for reversal of charges, with kotak i got refund of everything except for IGST(this was 3 years ago I think).

Amex is too at fault. Yeah, I know there's set of rules and bank's are here to earn, but not this way.

There's a buffer time in which, if the order gets cancelled and refunds credited to card, EMI automatically gets cancelled in Axis Bank.

Same should be followed by all other banks.

 

[zoro]

Amex is too at fault. Yeah, I know there's set of rules and bank's are here to earn, but not this way.

There's a buffer time in which, if the order gets cancelled and refunds credited to card, EMI automatically gets cancelled in Axis Bank.

Same should be followed by all other banks.

Banks are there only to make money and that is the only reason they provide any service, as i said in my case with kotak, Kotak was reluctant but gave a one time concession kind of thing and reverted their charges except for igst, try negotiating for the same it might help.

 

[SomChoudhury]

I have never faced such issues with other banks like ICICI, HDFC, and Standard Chartered. In my past experiences, refunds were either automatically adjusted against EMIs or at least.

This is the first time I have experienced such a lack of transparency with AmEx. If other banks can handle EMI refunds properly, why is AmEx making this process deliberately difficult?

Has anyone else faced similar issues only with AmEx? If so, how did you get it resolved?

 

[BestBankerBestBanker is verified member.]

I have never faced such issues with other banks like ICICI, HDFC, and Standard Chartered. In my past experiences, refunds were either automatically adjusted against EMIs or at least.

This is the first time I have experienced such a lack of transparency with AmEx. If other banks can handle EMI refunds properly, why is AmEx making this process deliberately difficult?

Has anyone else faced similar issues only with AmEx? If so, how did you get it resolved?

You can contact Customer care and get this resolved over a call.

 

[SomChoudhury]

For those considering an American Express credit card, be warned. Their handling of EMI refunds is filled with loopholes designed to exploit customers. I am sharing my real experience so that others don’t fall into the same trap.

🔴 The Issue:
✅ On October 1, 2024, I purchased a product on EMI via Flipkart.
✅ On October 7, 2024, Flipkart issued a full refund of ₹28,498, but AMEX continued charging EMIs for months despite receiving the refund.
✅ AMEX failed to notify me that EMI cancellation had to be manually requested within 30 days, something other banks (HDFC, ICICI) handle automatically.
✅ Instead of correcting this, AMEX applied a wrongful "Installment Plan Accelerated/Recalled" charge of ₹9,554.79 in January 2025.
✅ When I raised the issue, AMEX closed my complaint without resolution, falsely claiming the charges were valid.

🔴 What AMEX Said in Response:
📌 First, they denied any issue and insisted that I should have known their Terms & Conditions.
📌 Then, they admitted that refunds are not auto-adjusted, but refused to explain why customers aren’t notified.
📌 They claimed the EMI was “Transferred to Installment Plan” (₹28,697), but never explained why I was charged twice.
📌 Finally, they applied an additional ₹9,554.79 fee in January 2025, calling it "Installment Plan Accelerated/Recalled," without any justification.

🔴 AMEX’s Response Lacks:
❌ Transparency on EMI cancellation & refund adjustments
❌ Any valid justification for continuing EMI charges post-refund
❌ Proactive customer communication about important policies

💬 Has anyone else faced a similar issue with AMEX? How did you get it resolved?