American Express Faces Lawsuit Over Alleged Reporting of Settled Debt
American Express National Bank is facing a lawsuit from a consumer who claims the bank reported settled accounts as unpaid debts to major credit reporting agencies.
Plaintiff Brendan Pohl filed the lawsuit, alleging that the bank continued reporting settled accounts as charged off with outstanding balances after settlement payments had been made.
The lawsuit claims the reporting continued despite Pohl disputing the information several times.
Consumer Says Accounts Were Settled
According to the lawsuit, Pohl had two American Express business accounts. He later entered into settlement agreements with American Express for both accounts.
Pohl says he made the required settlement payments. The lawsuit states that American Express sent him an email on Feb. 21, 2026, confirming that the payments had been successfully processed.
However, Pohl claims the accounts were later reported to TransUnion, Experian, and Equifax as unpaid charged-off debts.
According to the complaint, American Express continued furnishing this information about every 30 days.
Lawsuit Claims Credit Reporting Disputes Did Not Fix the Issue
Pohl says he disputed the information several times in February and March.
The lawsuit claims American Express received the disputes but continued to verify the accounts as accurately reported instead of correcting the information.
Pohl alleges that American Express knew or should have known that the accounts had been settled because it had processed the settlement payments.
The complaint also claims the continued reporting made it appear that Pohl still owed money on accounts he says had already been resolved through settlement.
Consumer Alleges Credit and Financial Harm
Pohl claims the alleged reporting caused several forms of harm.
According to the lawsuit, he suffered damage to his credit and reputation and faced higher costs when seeking credit. He also claims he experienced emotional distress because of the situation.
The lawsuit alleges that American Express violated the federal Fair Credit Reporting Act.
Pohl also alleges violations of California’s Consumer Credit Reporting Agencies Act and the Rosenthal Fair Debt Collection Practices Act.
Lawsuit Seeks Damages and Jury Trial
Pohl is seeking actual, statutory, and punitive damages from American Express. He has also requested a jury trial.
The lawsuit centers on allegations that American Express continued reporting the two accounts as unpaid after settlement payments were processed and continued verifying that information after Pohl disputed it.
The claims remain allegations made in the lawsuit. American Express has not been found liable, and the case may proceed through further court review before any final determination.
