It's funny, I used to think American Express was an honest company.

http://money.cnn.com/2012/10/01/pf/a...und/index.html

That's why I was shocked when I actually had to use one of their benefits in 2004, and I ran into a department that existed solely to deny my rightful benefits.

I had rented a car using American Express, which comes with complimentary CDW coverage -- basically the same collision coverage that rental car companies offer for $9-$20/day, but for free.

An unlicensed, uninsured driver hit me in Las Vegas, so I called American Express to cover the damage. It was only $1100. I couldn't believe it when I got denied due to a ridiculous reason. In fact, the reason they gave contradicted their own website's terms. For 18 months, I fought unsuccessfully to get paid. This was blatant fraud, and I couldn't believe it was being perpetrated by a huge company like American Express over a matter of $1100.

Finally a collection agent for the rental car company helped me. She was so familiar with American Express' CDW scam that she knew the name of the person I was dealing with before I told her. She said that she knew how to force them to pay, and sure enough, 7 days later I got paid.

Needless to say, I now use other credit cards when paying for rental cars for the free CDW coverage.

Anyway, the CNN story above doesn't surprise me.

Funny enough, American Express' primary marketing tactic is portraying themselves as very customer-friendly. I guess that means they smile while ripping you off.