Loading…
Sunday, September 21, 2014
Current Weather
Loading Current Weather....
Published: Tuesday, 12/24/2013

American Express will pay at least $75.7M to settle review of discontinued card products

ASSOCIATED PRESS

NEW YORK — American Express has agreed to pay at least $75.7 million to end an investigation into what regulators said was misleading marketing of some discontinued card products.

The Federal Deposit Insurance Corporation said Tuesday that American Express led consumers to believe that an account protection product would work for up to two years when the benefits usually lasted no more than three months, and it didn’t properly explain the enrollment process for a product intended to protect against identity theft. It said 85 percent of consumers who signed up didn’t complete the enrollment process, but they were billed anyway.

The agency also said that the company misrepresented the terms of a “lost wallet” product that was offered to Spanish-speaking customers in Puerto Rico, and it did not provide written materials in Spanish.

The New York-based company said it agreed to pay $16.2 million in fines and repay at least $59.5 million to customers.

American Express Co. said it has set aside enough to cover most of the costs of the settlement with the FDIC, the Consumer Financial Protection Bureau, and the Office of Comptroller of the Currency. It has already made most of the payments to customers.



Guidelines: Please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. If a comment violates these standards or our privacy statement or visitor's agreement, click the "X" in the upper right corner of the comment box to report abuse. To post comments, you must be a Facebook member. To find out more, please visit the FAQ.

Related stories