AmEx Faces Lawsuit Over Unfair Account Protector Plan

A proposed class-action consumer fraud lawsuit was filed against American Express in a New York federal court last week claiming that the credit card company imposed its account protector program on some customers without their consent and refused benefits to others in violation of deceptive trade laws.

Under the now-discontinued account protector program, minimal monthly payments were to be made for the American Express credit card customers in case of certain life changes that could make them incapable of repaying their credit card bills, reported Law360(subscription required).

According to the complaint, American Express sold this product via phone calls and direct mailings, without making an attempt to check the eligibility of the consumer and it sold the product to consumers who did not qualify for it, such as senior citizens, the unemployed, self-employed, or seasonally employed.

The lawsuit further claims the consumers were prevented from receiving the account protector benefits they paid for due to eligibility restrictions and qualifications that were revealed after enrollment, reported Law 360.

In addition, some customers never gave their verbal or written consent for enrollment in the account protector program but were charged monthly fees for it, only to be denied the benefits that they thought were assured, alleges the suit.

If you or a loved one has been wronged by consumer fraud, contact Sokolove Law today for a free legal consultation and to find out if a consumer fraud lawyer may be able to help you.

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