Thursday, November 08, 2012 - Posted by Philip Harvey
American Express Centurion Bank settles frau
d charges for unfair and deception practices for $112 US million. The US regulators pursuing the matter were the Federal Reserve, the Federal Deposit Insurance Corporation and the consumer Financial Protection Bureau. All of them claimed that federal laws prohibiting deceptive conduct by using false statements to make customers settle old debts were used by American Express.
The company also charged late fees calculated as a % of the debt owed which became illegal in the US in 2009.
American Express agreed to refund $85 million to customers and pay $27.5 million in civil fines.
It is likely that the ACCC would take similar action in the same circumstances should they arise in Australia.