The Amex Auto-Pay Glitch: A Costly Lesson for Credit Card Users
A strange glitch hit American Express (Amex) customers in India who had set up NACH auto-payments from their savings accounts. What looked like a small technical error ended up becoming a nightmare for many users — even affecting their CIBIL scores months later.
What Went Wrong
Many Amex users had set up auto-debit (NACH) instructions to pay their monthly credit card bills directly from their bank accounts. During the May–June billing cycles, these users saw that:
- The payment amount was credited to their Amex cards.
- But the money was never debited from their linked bank accounts.
So, their Amex statements showed zero outstanding, while their bank balances remained untouched.
What Happened Next
Believing everything was settled, some users — especially those planning to move away from Amex — decided to close their credit cards. After all, the Amex app showed a clean slate.
However, around September 2025, Amex’s internal accounting systems flagged discrepancies. Upon investigation, they found that the auto-debit transactions in question had failed on the bank side but were still manually credited to Amex accounts during the glitch period.
To fix the mismatch, Amex reversed the false credits, which immediately created overdue balances — even for accounts that had already been closed!
Amex’s Response
Amex representatives started calling affected customers, explaining the situation and asking them to repay the outstanding dues immediately.
Unfortunately, because the reversal dated back 2–3 months, these amounts appeared as overdue in the credit bureaus’ records. The result?
A drop in CIBIL scores for many users, despite them believing their cards were already closed.
Key Takeaways
This incident highlights a crucial truth about credit card systems and financial discipline:
- Never assume a “free pass” from a system glitch. If a payment didn’t reflect as a debit in your bank, verify it manually before celebrating.
- Always wait for one full billing cycle after card closure before completely disengaging from any issuer.
- Monitor your CIBIL report regularly — especially after closing credit cards or facing unusual payment adjustments.
- Don’t try to outsmart the system. Even if an error appears to work in your favor, it usually gets corrected later, and the consequences can hurt your creditworthiness.
Final Word
Credit card systems are tightly regulated, audited, and reconciled. Any shortfall in the books eventually surfaces. When that happens, it’s the customer who ends up paying — literally and figuratively.
So, the lesson is simple: Stay ethical, stay alert, and don’t rely on system glitches.
If you found this post helpful, press Like and Share it with your friends.
Follow SpendWisely for more insights, updates, and tips on credit cards, airmiles, and smart online spending.
