The CFPB has gone on a bit of a tear with suits against charge card corporations, nailing Discover and Capital One earlier this year. American Express has joined the ranks, settling a case with the CFPB and other organizations and agreeing to refund $85 million to customers.
American Express joins ranks of card businesses slapped with Consumer Financial Protection Bureau lawsuits
The main goal of the Consumer Financial Protection Bureau is to guard consumers from financial services, but that does not just contain producing brand new legislation. In fact, a variety of financial service providers are dealing with suits for breaking regulations associated with other companies.
Both Discover and Capital One have already faced suits from the Consumer Financial Protection Bureau amounting to over $200 million in settlements. A lot of that cash is going back to consumers according to NBC News. It seems credit card businesses have been the first targets.
Another lawsuit was just recently settled with American Express too, according to CBS. However, the suit did not just contain the Consumer Financial Protection Bureau. There were also complains from the Federal Reserve, regulators in Utah State, the Federal Deposit Insurance Company, and the Office of the Comptroller of Currency.
Consumers get quick cash
American Express is in trouble for breaking multiple regulations, such as failing to report billing disputes and laws about debt collection and reporting. It also charged late charges over legal limits and made false claims about rewards. Also, applicants over the age of 35 were discriminated against.
A refund will be needed for $85 million from American Express. The business will also be paying $27.5 million in fines for the issues.
The brouhaha over late charges, according to CBS, was due to charging late fees depending on a percentage but, according to CNN, subsidiaries American Express Centurian Bank and American Express Bank set the rate in excess of already established limits. American Express Centurian Bank also offered $300 to qualified consumers who were approved for an American Express "Blue Sky" card, which some consumers never received.
Age was an enormous factor in the credit scoring system at American Express Centurian Bank. That is not legal because it is known as discrimination.
Another problem with debt
American Express, American Express Bank and American Express Centurian Bank also told some customers that they could improve credit scores by paying down debts which were at least 7 years old, which do not impact credit scores. These violations, according to CBS, are said to have been going on from 2003 to this year.
According to NBC News, 250,000 people will get part of the $85 million in concessions. This will take place in March 2013.
American Express joins ranks of card businesses slapped with Consumer Financial Protection Bureau lawsuits
The main goal of the Consumer Financial Protection Bureau is to guard consumers from financial services, but that does not just contain producing brand new legislation. In fact, a variety of financial service providers are dealing with suits for breaking regulations associated with other companies.
Both Discover and Capital One have already faced suits from the Consumer Financial Protection Bureau amounting to over $200 million in settlements. A lot of that cash is going back to consumers according to NBC News. It seems credit card businesses have been the first targets.
Another lawsuit was just recently settled with American Express too, according to CBS. However, the suit did not just contain the Consumer Financial Protection Bureau. There were also complains from the Federal Reserve, regulators in Utah State, the Federal Deposit Insurance Company, and the Office of the Comptroller of Currency.
Consumers get quick cash
American Express is in trouble for breaking multiple regulations, such as failing to report billing disputes and laws about debt collection and reporting. It also charged late charges over legal limits and made false claims about rewards. Also, applicants over the age of 35 were discriminated against.
A refund will be needed for $85 million from American Express. The business will also be paying $27.5 million in fines for the issues.
The brouhaha over late charges, according to CBS, was due to charging late fees depending on a percentage but, according to CNN, subsidiaries American Express Centurian Bank and American Express Bank set the rate in excess of already established limits. American Express Centurian Bank also offered $300 to qualified consumers who were approved for an American Express "Blue Sky" card, which some consumers never received.
Age was an enormous factor in the credit scoring system at American Express Centurian Bank. That is not legal because it is known as discrimination.
Another problem with debt
American Express, American Express Bank and American Express Centurian Bank also told some customers that they could improve credit scores by paying down debts which were at least 7 years old, which do not impact credit scores. These violations, according to CBS, are said to have been going on from 2003 to this year.
According to NBC News, 250,000 people will get part of the $85 million in concessions. This will take place in March 2013.
About the Author:
How often have you needed more info on where to find a fast payday loans online and turned to an internet search on emergency payday cash loans?" Your search is over, all the info you will need is at MatchFinancial.