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American Express Will Refund $85 Million to Settle Charges that it Bilked Card Holders--Crook Alert!
American Express Violated Federal Credit Card Law
American Express will reimburse 250,000 credit card customers to resolve charges that it violated federal law in its, marketing, billing and debt collection practices as a result of a multi-agency investigation by the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, the Federal Reserve and the Utah Department of Financial Institutions.
American Express was found to have
1. Offered customers a misleading promotion offer of $300 which never materialized.
2. Discrimnated against customers based on their age.
3. Duped customers into paying off credit card debt to improve their credit rating but didn't bother reporting the payments to credit bureaus.
4. Had deficient compliance systems and failed to train its salesmen of its credit services.
In the settlement with regulators, AMEX agreed to stop its deceptive practices and establish an independent auditor to assure compliance with consumer protection laws.
10-2-12Reuters--Three American Express Subsidiaries Settle Charges of Deceptive Credit Card Practices for $85 Million
- AmEx to refund $85 mln to consumers to settle credit card probe| Reuters
WASHINGTON, Oct 1 (Reuters) - Three American Expresssubsidiaries will refund $85 million to customers to resolvecharges that they broke consumer protection laws, U.S.regulators said on Monday.The subsidiaries
10-2-12CNBC Amex Settles for $85 Million in Credit Card Violation Charges
- AmEx Affiliates Settle Charges Over Consumer Violations - CNBC
Three American Express subsidiaries will refund $85 million to customers to resolve charges that they broke consumer protection laws, U.S. regulators said on Monday.