Reuters: U.S.: AmEx to refund $85 million to consumers to settle credit card probe

Reuters: U.S. Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

AmEx to refund $85 million to consumers to settle credit card probe Oct 1st 2012, 15:36 Tweet Share this Email Print Related News Discover Financial profit beats as consumers spend more Thu, Sep 27 2012 UPDATE 3-Discover Financial profit beats as card use rises Thu, Sep 27 2012 U.S. regulator fines Discover for deceptive marketing Mon, Sep 24 2012 Three states join lawsuit challenging Dodd-Frank law Fri, Sep 21 2012 Analysis & Opinion Who qualifies as a Dodd-Frank whistle-blower? Two U.S. courts offer whistleblowers conflicting guidance on protections for internal reporting American Express and American Express corporate cards are pictured in Encinitas, California October 17, 2011. Credit: Reuters/Mike Blake WASHINGTON | Mon Oct 1, 2012 11:36am EDT WASHINGTON (Reuters) - 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. The subsidiaries charged illegal late fees, treated applicants differently based on age, misled consumers about debt collection and committing other violations, the U.S. Consumer Financial Protection Bureau said. In addition to the refund to about 250,000 customers, American Express will pay civil penalties totaling $27.5 million to the CFPB, Federal Deposit Insurance Corp, the Federal Reserve and the Office of the Comptroller of the Currency. "Several American Express companies violated consumer protection laws and those laws were violated at all stages of the game - from the moment a consumer shopped for a card to the moment the consumer got a phone call about long overdue debt," CFPB Director Richard Cordray said. The CFPB was created by the 2010 Dodd-Frank financial law and charged with overseeing credit cards, mortgage loans and other consumer financial products. It said American Express violations occurred over a period from 2003 to the spring of 2012. (Reporting by Emily Stephenson; Editing by Leslie Gevirtz) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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