The Consumer Financial Protection Bureau has gone on a bit of a tear with suits against credit card corporations, nailing Discover and Capital One a few months ago. American Express has joined the ranks, settling a suit with the CFPB and other agencies and agreeing to refund $85 million to customers.
CFPB lawsuits annoy American Express
The primary goal of the CFPB is to guard customers from financial services, but that does not just include creating new legislation. In fact, a lot of financial service providers are dealing with lawsuits for breaking laws associated with other agencies.
Charge card corporations have thus far been first in the firing line. Lawsuits involving the CFPB have been brought against Discover and Capital One, according to NBC News, both resulting in settlements in excess of $200 million, much of going to refunding consumers.
Another lawsuit was just recently settled with American Express too, according to CBS. However, the lawsuit did not just include the CFPB. There were also complains from the Federal Reserve, regulators in Utah State, the Federal Deposit Insurance Business, and the Office of the Comptroller of Currency.
Returned to customers
American Express is in trouble for breaking multiple laws, such as failing to report billing disputes and laws about debt collection and reporting. It also charged late fees over legal limits and made false claims about rewards. Also, applicants over the age of 35 were discriminated against.
The charge card business is ordered to pay $27.5 million in fines and $85 million back to consumers in a refund.
Subsidiaries American Express Bank and American Express Centurian Bank were in trouble because they charged a rate higher than legal limits for late fees, according to CNN. Instead of charging one fee, they charge a percentage, according to CBS. Also, $300 bonuses were offered to customers who got the American Express "Blue Sky" car, but customers did not receive that ever.
American Express Centurian Bank also instituted a credit scoring system based on age, which is contrary to anti-discrimination regulations.
Looking at debt procedures
At American Express and its subsidiaries, there were lies being told from 2003 until now, according to CBS. The lie was that customers could increase their credit scores if they paid off debts older than 7 years. These debts do not even show up on a credit score after that time frame.
In March 2013, about 250,000 people will get part of the $85 million concessions, according to NBC News.
CFPB lawsuits annoy American Express
The primary goal of the CFPB is to guard customers from financial services, but that does not just include creating new legislation. In fact, a lot of financial service providers are dealing with lawsuits for breaking laws associated with other agencies.
Charge card corporations have thus far been first in the firing line. Lawsuits involving the CFPB have been brought against Discover and Capital One, according to NBC News, both resulting in settlements in excess of $200 million, much of going to refunding consumers.
Another lawsuit was just recently settled with American Express too, according to CBS. However, the lawsuit did not just include the CFPB. There were also complains from the Federal Reserve, regulators in Utah State, the Federal Deposit Insurance Business, and the Office of the Comptroller of Currency.
Returned to customers
American Express is in trouble for breaking multiple laws, such as failing to report billing disputes and laws about debt collection and reporting. It also charged late fees over legal limits and made false claims about rewards. Also, applicants over the age of 35 were discriminated against.
The charge card business is ordered to pay $27.5 million in fines and $85 million back to consumers in a refund.
Subsidiaries American Express Bank and American Express Centurian Bank were in trouble because they charged a rate higher than legal limits for late fees, according to CNN. Instead of charging one fee, they charge a percentage, according to CBS. Also, $300 bonuses were offered to customers who got the American Express "Blue Sky" car, but customers did not receive that ever.
American Express Centurian Bank also instituted a credit scoring system based on age, which is contrary to anti-discrimination regulations.
Looking at debt procedures
At American Express and its subsidiaries, there were lies being told from 2003 until now, according to CBS. The lie was that customers could increase their credit scores if they paid off debts older than 7 years. These debts do not even show up on a credit score after that time frame.
In March 2013, about 250,000 people will get part of the $85 million concessions, according to NBC News.
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