Welcome to our Persistent Debt Help Centre
The Financial Conduct Authority (FCA) has introduced rules to help people avoid building up and holding credit card debt over a long period of time. If you have paid more in interest, fees and charges than you have repaid on your Credit Card balance for a consecutive 18 month period, your Account would be described as in ‘Persistent Debt’ under the new rules. This could be the case if you have been regularly paying only the minimum monthly amount due. We are required to monitor your Account on an ongoing basis and notify you at different stages outlined in more detail below.
Persistent Debt develops over time.
American Express will contact you at different stages to discuss your personal situation and provide recommended actions that you can take to reduce the time it will take to clear your debt, as well as highlight the support available to you.
If you have been paying more in interest, fees and charges than towards your balance for a consecutive 18 month period, we will write to you to inform you of this. This communication will explain that by increasing your payments, you will reduce the cost of borrowing and the amount of time it would take to repay the balance. You will also be encouraged to contact us to discuss your financial circumstances and whether increasing repayments is affordable.
You can contact the following not-for-profit organisations for free, confidential and impartial debt advice, or for details of where to get such advice in your area:
MoneyHelper
For free, unbiased and easy-to-access money tools, information and advice, visit www.moneyadviceservice.org.uk or phone 0800 138 7777 to speak to a Money Advisor.
Money Advice Scotland
If you live in Scotland, phone 0141 572 0237 or visit www.moneyadvicescotland.org.uk to find contact details for debt advice in your local area.
Citizens Advice Northern Ireland
If you live in Northern Ireland, phone 0800 028 1881, email debt advice@citizensadvice.co.uk or visit www.citizensadvice.co.uk for debt advice.
AdviceUK
Member centres offer debt advice including specialist advice for minority communities and people with disabilities - www.adviceuk.org.uk or phone 0300 777 0107.
Christians Against Poverty (CAP)
For free debt advice in your home, check post code coverage at www.capuk.org then call 0800 328 0006.
Citizens Advice
For advice and information on debt and other topics, visit your local Citizens Advice (address in the phone book) or go to www.citizensadvice.org.uk.
National Debtline
If you live in England, Wales or Scotland phone 0808 808 4000 or visit www.nationaldebtline.org for debt advice and information.
StepChange Debt Charity
For debt advice throughout the UK phone 0800 138 1111 or visit www.stepchange.org.
You should consider increasing the payments you are making to your Account each month.
For example: if you are paying the minimum monthly due through Direct Debit you can increase it to the full or a fixed amount each month. Alternatively you can make one-off payments when you can afford to do so either online or by calling the number at the back of your Card. Please note that these may be taken in addition to your Direct Debit, if you have one set up. Below you can see an example of how much sooner you will repay your balance if you fix it at the amount you are currently repaying:
Credit Card Balance of £4,000 and 30.0% APR
Paying just the Minimum Due:
Starting monthly due of £169 which will reduce overtime assuming you make no further purchases on the Card.
It will take 10 years and 10 months to pay back the full amount.
Credit Card Balance of £4,000 and 30.0% APR
Setting up your payment to a fixed amount: £169 each month.
It will take 2 years and 10 months to pay back the full amount, assuming you make no further purchases on the Card.
Although credit cards are designed to give you flexibility, paying the minimum due regularly may result in more interest being charged over time and will take you longer to pay down the balance. To illustrate, with a £4,000 balance paying the monthly minimum due only at purchase interest rate of 22.9% will mean you will take more than ten years to pay back the balance in full. However paying a fixed £150 (initial minimum monthly due from the first month) you will pay back the balance in approximately three years. This will not only mean the balance is repaid faster, but also reduces the interest charged.
You can find the interest, fees and charges applied to your Account on your statements which are available to view and download online on your American Express Account.
You don’t need to increase your monthly payments straight away. Even if you set your monthly payment at the amount you have paid last month it will result in making more payments over time. Minimum payment are designed to be a percentage of your current balance, which means they can reduce over time (if you are not spending on your Card anymore). By keeping your payments set at a higher level you will be paying more towards clearing the balance on your Account.
You may also consider making one-off payments to your Account whenever it’s affordable for you.
We are here to help with whatever you are going through. There may be different options available to you, call the number at the back of your Card to talk to one of our representatives. You can also contact us via letter or Live Chat.
Independent advice on what you can do to improve your finances is also available. StepChange has an early intervention team who can help you to review your finances. Their service is independent and completely free of charge and they can be contacted on 0300 303 2517 (Monday to Friday 9am to 5pm) or www.stepchange.org/persistentdebt. There are other independent debt advice charities that can support you listed on our website americanexpress.com/uk/content/financial-difficulties/.
Nine months after the month 18 communication we will look at what you have been paying and assess if you are on track to get out of Persistent Debt.
If you are still showing as meeting the Persistent Debt criteria, we will send you a notification. At this stage, we would encourage you to increase your payments if it is affordable. We are also required to warn you of the potential implications of actions we may have to take if you continue to meet the Persistent Debt criteria, which can include suspending your Card in nine months time if you have not sufficiently increased your repayments.
You should consider increasing the payments you are making to your Account each month. For example: if you are paying the minimum monthly due through Direct Debit you can increase it to the full or a fixed amount each month. Alternatively you can make one-off payments when you can afford to do so either online or by calling the number at the back of your Card. Please note that these may be taken in addition to your Direct Debit, if you have one set up.
We are here to help with whatever you are going through. There may be different options available to you, call the number at the back of your Card to discuss with one of our representatives. You can also contact us via letter or Live Chat.
Independent advice on what you can do to improve your finances is also available. StepChange has an early intervention team who can help you to review your finances. Their service is independent and completely free of charge and they can be contacted on 0300 303 2517 (Monday to Friday 9am to 5pm) or www.stepchange.org/persistentdebt. There are other independent debt advice charities that can support you listed on our website americanexpress.com/uk/content/financial-difficulties/.
You don’t need to increase your monthly payments straight away. Even if you set your monthly payment at the amount you have paid last month it will result in making more payments over time. Minimum payments are designed to be a percentage of your current balance, which means they can reduce over time (if you are not spending on your Card anymore). By keeping your payments set at a higher level you will be paying more towards clearing the balance on your Account.
You may also consider making a one-off payments to your Account whenever it’s affordable for you.
You can contact the following not-for-profit organisations for free, confidential and impartial debt advice, or for details of where to get such advice in your area:
MoneyHelper
For free, unbiased and easy-to-access money tools, information and advice, visit www.moneyadviceservice.org.uk or phone 0800 138 7777 to speak to a Money Advisor.
Money Advice Scotland
If you live in Scotland, phone 0141 572 0237 or visit www.moneyadvicescotland.org.uk to find contact details for debt advice in your local area.
Citizens Advice Northern Ireland
If you live in Northern Ireland, phone 0800 028 1881, email debt advice@citizensadvice.co.uk or visit www.citizensadvice.co.uk for debt advice.
AdviceUK
Member centres offer debt advice including specialist advice for minority communities and people with disabilities - www.adviceuk.org.uk or phone 0300 777 0107.
Christians Against Poverty (CAP)
For free debt advice in your home, check post code coverage at www.capuk.org then call 0800 328 0006.
Citizens Advice
For advice and information on debt and other topics, visit your local Citizens Advice (address in the phone book) or go to www.citizensadvice.org.uk.
National Debtline
If you live in England, Wales or Scotland phone 0808 808 4000 or visit www.nationaldebtline.org for debt advice and information.
StepChange Debt Charity
For debt advice throughout the UK phone 0800 138 1111 or visit www.stepchange.org.
Sixteen months after we first wrote to you, we will send you a reminder advising if you are still meeting the Persistent Debt criteria. This communication will also provide you with an estimated personal amount. Payment of this amount, if affordable to do so, could move you out of persistent debt. We encourage you to contact us to discuss your financial circumstances.
We also warn you of the potential implications of actions we may have to take in two months' time if you continue to meet the Persistent Debt criteria.
You should consider increasing the payments you are making to your Account each month. For example: if you are paying the minimum monthly due through Direct Debit you can increase it to the full or a fixed amount each month. Alternatively you can make one-off payments when you can afford to do so either online or by calling the number at the back of your Card. Please note that these may be taken in addition to your Direct Debit, if you have one set up.
We are here to help with whatever you are going through. There may be different options available to you, call the number at the back of your Card to discuss with one of our representatives. You can also contact us via letter or Live Chat.
Independent advice on what you can do to improve your finances is also available. StepChange has an early intervention team who can help you to review your finances. Their service is independent and completely free of charge and they can be contacted on 0300 303 2517 (Monday to Friday 9am to 5pm) or www.stepchange.org/persistentdebt. There are other independent debt advice charities that can support you listed on our website americanexpress.com/uk/content/financial-difficulties/.
You don’t need to increase your monthly payments straight away. Even if you set your monthly payment at the amount you have paid last month it will result in making more payments over time. Minimum payment are designed to be a percentage of your current balance, which means they can reduce over time (if you are not spending on your Card anymore). By keeping your payments set at a higher level you will be paying more towards clearing the balance on your Account.
You may also consider making a one-off payments to your Account whenever it’s affordable for you.
You can contact the following not-for-profit organisations for free, confidential and impartial debt advice, or for details of where to get such advice in your area:
MoneyHelper
For free, unbiased and easy-to-access money tools, information and advice, visit www.moneyadviceservice.org.uk or phone 0800 138 7777 to speak to a Money Advisor.
Money Advice Scotland
If you live in Scotland, phone 0141 572 0237 or visit www.moneyadvicescotland.org.uk to find contact details for debt advice in your local area.
Citizens Advice Northern Ireland
If you live in Northern Ireland, phone 0800 028 1881, email debt advice@citizensadvice.co.uk or visit www.citizensadvice.co.uk for debt advice.
AdviceUK
Member centres offer debt advice including specialist advice for minority communities and people with disabilities - www.adviceuk.org.uk or phone 0300 777 0107.
Christians Against Poverty (CAP)
For free debt advice in your home, check post code coverage at www.capuk.org then call 0800 328 0006.
Citizens Advice
For advice and information on debt and other topics, visit your local Citizens Advice (address in the phone book) or go to www.citizensadvice.org.uk.
National Debtline
If you live in England, Wales or Scotland phone 0808 808 4000 or visit www.nationaldebtline.org for debt advice and information.
StepChange Debt Charity
For debt advice throughout the UK phone 0800 138 1111 or visit www.stepchange.org.
After meeting the Persistent Debt criteria for two consecutive 18-month periods, we are required by the FCA to take action. The intention of this is to help you pay back your balance within a reasonable period of time.
We will send you a letter at this point outlining your situation and your options.
If you receive this letter, it is important that you contact one of our Specialists on 0800 917 8020 to discuss your situation and to confirm the most sustainable payment option available to you within 8 weeks of the date of the letter. You can also contact us via letter or Live Chat.
If you do not respond to us within 8 weeks of receiving Month 36 letter, your American Express Card will be suspended. However, you can still contact us at any time after this period to discuss your options and we encourage you to do so.
Your options:
Option 1:
You can agree to a paydown programme that changes your monthly minimum payment from a percentage of your balance to a fixed amount. This will increase your overall payments and means that with no additional spend on your Card, you will clear your current balance plus interest in less than four years.
Based on the balance outstanding at your most recent statement, we will estimate your proposed minimum monthly payment and present this estimate in the letter. We will confirm the final amount when you contact us and confirm that it is financially sustainable for you to enter into this paydown programme. If you can afford to do so, you can still make higher payments than the fixed amount; this will clear your balance quicker.
This option will involve a change to your existing terms and, in order to fix the total amount you have to pay, the suspension of your Card.
We also understand that some customers may wish to retain use of their Card to pay for essential or emergency living expenses. We will still allow you to use your Card to pay for essential items, but you will need to speak to us beforehand.
To enrol into this option, please contact one of our Specialists on 0800 917 8020.
Option 2:
If the fixed minimum monthly payment proposed in option 1 is unaffordable to you, please call us as soon as possible on 0800 917 8020 and our team will work with you to find other repayment options which may be more suitable for you.
As a reminder, if you do not respond within 8 weeks of the letter, your American Express Card will be suspended. This means that you will not be able to make any transactions using your Card and you will need to make alternative arrangements for any regular payments set up on your Account. We strongly recommend you contact us to discuss your situation and assess your options.
If you have paid or intend to pay your balance in full within 8 weeks of the date of the letter, we will not suspend your Card as you would have cleared the persistent debt balance. However, we would still ask you to contact us within the timeframes set out in the letter.
We understand that some customers may wish to retain use of their Card to pay for essential or emergency living expenses. We will still allow you to use your Card to pay for essential items, but you will need to speak to us beforehand.
Even if your Card is cancelled, we will still contact you as above to assist you with your repayments. As outlined in our communication, you should contact us to discuss your financial circumstances and confirm a sustainable option.
If we have suspended your Account, this means you will no longer be able to use your benefits. Because we suspended your ability of use your Card, you will not be able to earn any more rewards or cashback. But all the points that you have earned so far are subject to the usual terms and conditions. We have provided further information on this in our letter to you regarding your options.
Suspension of your Card will not affect any insurance cover benefits provided with respect to any prior purchases billed to your Account, subject to your existing Terms and Conditions. For more information, please read Terms and Conditions of your product.
If you did not engage with us within 8 weeks of the date on the Month 36 letter that was sent to you, your American Express Card will be suspended. This means that you will not be able to make any transactions using your Card. However, you can still contact us at any time after this period by calling us on 0800 917 8020 to discuss your situation and help available to you. You can also contact us via letter or Live Chat.
While your American Express® Card Agreement allows you to pay the minimum amount due or a lower amount relative to the balance (but still above the minimum), consistently doing so will affect both the length of time and cost of your borrowing. We are encouraging you to engage with us and, if affordable, increase your payments so that you can repay your balance faster and at less overall cost.
If you are experiencing any difficulties with your repayments or have concerns regarding your finances, please contact us to discuss your circumstances so we can find the most suitable way to support you.
We understand that some customers may wish to retain use of their Card to pay for essential or emergency living expenses. If your Card is suspended, we can still allow you to use your Card to pay for essential items, but you will need to speak to us beforehand by calling us on 0800 917 8020.
Even if your Card is cancelled, we will still contact you to assist you with your repayments. As outlined in our communication, you should contact us to discuss your financial circumstances and the support options available.
Please refer to Month 36 for additional information.
If we have suspended your Account, this means you will no longer be able to use your benefits. Because we suspended your ability of use your Card, you will not be able to earn any more rewards or cashback. But all the points that you have earned so far are subject to the usual terms and conditions. We have provided further information on this in our letter to you regarding your options.
Suspension of your Card will not affect any insurance cover benefits provided with respect to any prior purchases billed to your Account, subject to your existing Terms and Conditions. For more information, please read Terms and Conditions of your product.
You can contact the following not-for-profit organisations for free, confidential and impartial debt advice, or for details of where to get such advice in your area:
MoneyHelper
For free, unbiased and easy-to-access money tools, information and advice, visit www.moneyadviceservice.org.uk or phone 0800 138 7777 to speak to a Money Advisor.
Money Advice Scotland
If you live in Scotland, phone 0141 572 0237 or visit www.moneyadvicescotland.org.uk to find contact details for debt advice in your local area.
Citizens Advice Northern Ireland
If you live in Northern Ireland, phone 0800 028 1881, email debt advice@citizensadvice.co.uk or visit www.citizensadvice.co.uk for debt advice.
AdviceUK
Member centres offer debt advice including specialist advice for minority communities and people with disabilities - www.adviceuk.org.uk or phone 0300 777 0107.
Christians Against Poverty (CAP)
For free debt advice in your home, check post code coverage at www.capuk.org then call 0800 328 0006.
Citizens Advice
For advice and information on debt and other topics, visit your local Citizens Advice (address in the phone book) or go to www.citizensadvice.org.uk.
National Debtline
If you live in England, Wales or Scotland phone 0808 808 4000 or visit www.nationaldebtline.org for debt advice and information.
StepChange Debt Charity
For debt advice throughout the UK phone 0800 138 1111 or visit www.stepchange.org.