American Express Ordered to Pay $59.5 Million for Illegal Credit Card Practices
The Consumer Financial Protection Bureau (CFPB) has ordered American Express to immediately refund an estimated $59.5 million to more than 335,000 consumers for illegal credit card practices.
These practices included unfair billing tactics and deceptive marketing with respect to credit card "add-on products" such as payment protection and credit monitoring. American Express will pay an additional $9.6 million in civil penalties to the CFPB.
"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. "Today we are refunding thousands of American Express customers who were harmed by these illegal practices. Consumers deserve to be treated fairly and should not pay for services they do not receive."
The Bureau has been coordinating this public action with the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) to identify and address these issues.
The FDIC is fining American Express Centurion Bank $3.6 million and the OCC is fining American Express Bank, FSB $3 million. This is the fourth action the Bureau has taken in coordination with fellow regulators to address illegal practices with respect to credit card add-on products.
Don't Let Car Dealers Take You In with an Illegal Yo-Yo Auto Sale Scam
You've finally filled out all the paperwork for a new or used car and drive it off the lot in triumph. Then, only a few hours (or days or weeks) later, the dealer calls you and tells you that you have to return the car because your financing didn't go through. What's going on? Is this legal? No.
Scam Alert: Don't Fall For a Fake Discounted Cable Service Offer
According to the scam alert released by the Better Business Bureau (BBB), scammers are targeting unsuspecting consumers across the country by impersonating cable companies and taking advantage of subscribers' eagerness to save money on cable television services.
Do You Know How to Protect Yourself Against Computer Fraud
Do you know how to protect yourself against computer fraud? Most people think they can spot a scam, but scammers are getting better every day. It's now sometimes very difficult to know who is on the other end of the Internet and whether an email or website is truly legitimate.
Your Phone May Allow Hackers to See the Screen While It Charges
We use our phones to do all kinds of things. But those who use USB charging stations may want to think twice before checking off the first two items on that list. Security researchers have discovered a way to hack into smartphones using USB stations and view and record everything that is displayed on the screen.