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CFPB and American Express reach resolution to address discriminatory card terms

Staff Writer | August 24, 2017
The Consumer Financial Protection Bureau (CFPB) took action against two American Express banking subsidiaries for discriminating against consumers in Puerto Rico, the U.S. Virgin Islands, and other U.S. territories by providing them with credit and charge card terms that were inferior to those available in the 50 states.
Payments   Puerto Rico and U.S. Territories
American Express also discriminated against certain consumers with Spanish-language preferences.

Over the course of at least ten years, more than 200,000 consumers were harmed by American Express’ discriminatory practices, which included charging higher interest rates, imposing stricter credit cutoffs, and providing less debt forgiveness.

American Express has paid approximately $95 million in consumer redress during the course of the Bureau’s review and American Express’ review, and today’s order requires it to pay at least another $1 million to fully compensate harmed consumers.