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American Express Will Refund $85 Million to Settle Charges that it Bilked Card Holders--Crook Alert!

Updated on October 2, 2012

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.

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    • Ralph Deeds profile image
      Author

      Ralph Deeds 5 years ago from Birmingham, Michigan

      Thanks for your comment. I agree. I've canceled every account with the NY banksters. They've all paid millions to settle fraud charges, but nobody ever goes to jail. USAA's World Credit Card (Master Card) is worth considering if you need a credit card.

    • suzettenaples profile image

      Suzette Walker 5 years ago from Taos, NM

      I read about this in the paper. And I always had such high regard for American Express. These credit companies have all turned into crooks and are literally stealing money from us. I have no more credit cards. If I can't pay for it, I don't buy it. Thanks for putting this on HP. Everyone needs to know about this and I hope there are more class action suits against these banks and credit card companies.