Yes, agree with the others. This sounds sketchy, and very unlike what we all expect a credit card company to actually do. I personally, don't use Amex after many bad experiences with them over the years, but that's me, and I know others like them.

I'm also wondering if Amex has different rules/policies for their UK customers. Or its entirely possible that the Amex people that handled your situation are not the sharpest knives in the drawer....