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American Express settles defraud charges with US regulators

American Express has reached settlements with several US regulatory agencies to resolve many cases and charges related to the company’s US consumer card practices.

The company also inked similar settlements on behalf of its subsidiaries, including American Express Centurion Bank; American Express Bank, FSB; and American Express Travel Related Services Company.

The settlements were signed with the Federal Deposit Insurance Corporation (FDIC), Consumer Financial Protection Bureau (CFPB), Board of Governors of the Federal Reserve System (FRB), Office of Comptroller of the Currency (OCC), and Utah Department of Financial Institutions (UDFI).

Charges against the firm and its subsidiaries include violations pertaining to certain aspects of debt collection practices, credit card solicitations, late fee charges, the reporting of disputes to credit bureaus and new account approval processes.

The US firm has agreed to pay a collective fine of $27.5m to settle the charges, in addition to compensating $85m to about 250,000 customers to resolve the accusations.

American Express is a global services company, which offers customers with access to products, insights and experiences that enrich lives and build business success.