American Express, a Dow component, will pay $16.2 million in fines and at least $59.5 million in customer remediation, the company said.
The customer remediation will go to more than 335,000 customers, said the US Consumer Financial Protection Bureau in a statement. The action also involved the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency.
"We first warned companies last year about using deceptive marketing to sell credit card add-on products, and everyone should be on notice of this issue," said CFPB Director Richard Cordray.
"Consumers deserve to be treated fairly and should not pay for services they do not receive."
The settlement resolves a variety of allegations over AmEx's management of various supplementary products to customers, such as "identity protection."
In some cases, AmEx charged consumers for identity protection services without the written authorization necessary to provide services, the CFPB said.
American Express, a Dow component, will pay $16.2 million in fines and at least $59.5 million in customer remediation, the company said.
ReplyDeleteThe customer remediation will go to more than 335,000 customers, said the US Consumer Financial Protection Bureau in a statement. The action also involved the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency.
"We first warned companies last year about using deceptive marketing to sell credit card add-on products, and everyone should be on notice of this issue," said CFPB Director Richard Cordray.
"Consumers deserve to be treated fairly and should not pay for services they do not receive."
The settlement resolves a variety of allegations over AmEx's management of various supplementary products to customers, such as "identity protection."
In some cases, AmEx charged consumers for identity protection services without the written authorization necessary to provide services, the CFPB said.