American Express has agreed to pay $230 million to settle allegations that it used deceptive sales tactics when selling credit card and wire transfer products to small business customers. The company will pay $108.7 million in civil penalties and $138 million to resolve a separate criminal investigation.
From 2014 to 2017, the Justice Department claimed that American Express misrepresented its card rewards and fees, as well as whether credit checks would be done without customer consent. The company was also accused of submitting falsified financial information for prospective customers.
Additionally, from 2018 to 2021, the department alleged that American Express deceptively sold wire transfer products called Payroll Rewards and Premium Wire, making false claims about their tax benefits.
American Express said it took voluntary action to address these issues, including discontinuing certain products, conducting an internal review, and taking disciplinary measures. The company cooperated extensively with regulators and will not be affected by the settlement in its 2024 earnings guidance.
Source: https://www.nytimes.com/2025/01/16/your-money/american-express-fines-credit-cards.html