NEW YORK–American Express has agreed to pay at least US$75.7 million to end an investigation by regulators into some discontinued card products.
The Federal Deposit Insurance Corporation (FDIC) said American Express led consumers to believe that an account protection product would work for up to two years when the benefits usually lasted no more than three months, and it didn't properly explain the enrolment process for a product intended to protect against identity theft. It says most consumers didn't complete the enrolment process but were billed anyway.
The settlement ends inquiries by the FDIC, the Consumer Financial Protection Bureau and the Office of Comptroller of the Currency.The New York-based company said it agreed to pay US$16.2 million in fines and repay at least US$59.5 million to customers.
AP