Credit Card Abuse Costs American Express $112.5 Million

American Express has agreed to pay $112.5 million to resolve charges stemming from a federal investigation that uncovered illegal credit card practices.

The Wall Street Journal (subscription required) reports the investigation found numerous infringements in customer card practices during 2003-2012 including illegal late fees, misleading debt recovery practices, and age bias against new applicants.

The settlement includes a refund of $85 million that will go to 250,000 customers, as well as civil penalties of $27.5 million to federal regulators including the Consumer Financial Protection Bureau, the Federal Reserve, and the FDIC.

As part of the settlement, American Express did not admit to any wrongdoing.

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

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