Dear professionals, American Express Announced Settlements with Bank Regulators Related to Credit Card Add-on Products.
This is official since this midday, certain of American Express subsidiaries have
reached settlements with several regulatory agencies to resolve previously
disclosed regulatory reviews of marketing and billing practices related to
several products that have been discontinued.
Connectikpeople.co observes that, the settlements involve American Express
Travel Related Services Company, Inc., American Express Centurion Bank and
American Express Bank, FSB.
Consent orders were signed with the Consumer Financial Protection Bureau
(CFPB), Federal Deposit Insurance Corporation (FDIC), and the Office of
Comptroller of the Currency (OCC). American Express has cooperated fully
with
the CFPB, FDIC and OCC.
The American Express entities will pay fines totaling $16.2 million and
agreed to provide at least $59.5 million in customer remediation. Most of the
costs associated with the settlements have been provided for in prior quarters,
and most of the remediation has already been provided to customers.
Regarding the credit card add-on products cited in the consent orders, Connectikpeople.co has captured:
- Identity Protect/ Identity Protect Premium: products designed to help consumers detect and prevent identity theft;
- Account Protector: a product designed to help pay the outstanding balance on a Card Member’s account in certain circumstances, such as job loss or hospitalization;
- Lost Wallet Protector marketed in Puerto Rico: a product designed to help consumers cancel and replace lost items such as credit, debit and ATM cards.
American Express also announced that it continues to conduct internal
reviews designed to identify issues, correct them and ensure that its products
and practices meet a high standard of quality.
