You might want to leave it in your wallet.
"American Express to refund $85m to customers" by Jessica Silver-Greenberg |
New York Times, October 02, 2012
American Express will reimburse $85 million to about 250,000
customers to resolve accusations that the company violated federal law
in its marketing, billing, and debt collection practices, the company
and the government said Monday.
The settlement is the latest enforcement action that federal and
state regulators have brought against some of the nation’s largest
financial institutions for problems in their credit card businesses....
To win customers for its ‘‘Blue Sky’’ travel reward credit card
program, the lender sometimes offered them a $300 reward, which never
materialized, the regulators said.
In doling out credit, according to regulators, American Express also discriminated against applicants based on their age.
The company also duped consumers into paying off stale credit card
debt with the promise of improving their credit score, the investigators
said; in fact, regulators found, American Express was not reporting the
payments to the credit bureaus at all....
They must have been in a hurry.
American Express customers should expect refunds by March, regulators
said. The company also agreed to pay $27.5 million in fines to the
regulators.
American Express, long known for its aspirational cards and tonier
customer base, said it had outlined plans to address each of the
violations and ‘‘cooperated fully’’ with regulators.
Under the deal with regulators, the company must halt the deceptive
practices and set up independent auditors to ensure that its practices
comply with consumer protection laws.
Just wondering WHY WE SHOULD HAVE TO WORRY ABOUT SUCH A THING!!!!
I mean, I've been told all my life bankers are the good guys there to help you!
The fines and customer refunds will be paid, for the most part, by
reserves established in prior quarters, American Express said....
Related: Banks Reserve Profits For Themselves
Greedy selfish bastards!
The move against the bank is part of a broader push by federal and
state regulators to protect consumers from illegal credit card and debt
collection practices as millions of Americans struggle to pay their
bills in a floundering economy.
I've been told we have been in recovery for years so how can that be?
This year, the newly minted Consumer Financial Protection Bureau has
leveled enforcement actions against Capital One and Discover Financial
over sales tactics of credit products.
Newly minted, that's witty.
--more--"
Related: What's In Your Wallet?
Not much once the credit companies are through with it.
UPDATE: Consumers in US reduce use of credit cards for 2d month
Gee, I can't imagine why they wouldn't want to u$e a credit card.
