Ahnaf Tahmed Faiz ID: 111 0174 530 Mgt 372.9 Jou na! " 1 Fa!!

2012

American Express Says It Will Refund $85 Million

#e$ent!%& Ame i$an '() e** de$ided to e)a% nea !% +,5 mi!!ion to a-out 250&000 $u*tome * to e*o!.e a$$u*ation* that the $om)an% .io!ated fede a! !a/ in it* ma 0eting& -i!!ing and de-t $o!!e$tion ) a$ti$e*. The *ett!ement i* the mo*t e$ent in a *e ie* of enfo $ement a$tion* that fede a! and *tate egu!ato * ha.e - ought again*t *ome of the nation1* !a ge*t finan$ia! in*titution* fo t ou-!e* in.o!.ing $ edit $a d -u*ine**e*. In ea$h of the $a*e*& egu!ato * ha.e e()o*ed *e iou* e o * in ho/ the -an0* monito me $hant* )e fo m $ent a! -u*ine** fun$tion*. The ) o-!em fi *t a o*e /hen to /in $u*tome * fo it* 23!ue 40%5 t a.e! e/a d $ edit $a d ) og am& the !ende *ometime* offe ed $u*tome * a mi*!eading ) omotion. 4ome $u*tome * thought the% /ou!d e$ei.e a +300 e/a d& -ut that ne.e mate ia!ized& the egu!ato * *aid. In gi.ing out $ edit& the% *aid& Ame i$an '() e** a!*o di*$ iminated again*t a))!i$ant* -a*ed on thei age. The $om)an% a!*o t i$0ed $on*ume * into )a%ing off out of date $ edit $a d de-t /ith the ) omi*e of im) o.ing thei $ edit *$o e& the in.e*tigato * *aid6 in fa$t& egu!ato * found& Ame i$an '() e** /a* not e)o ting the )a%ment* to the $ edit -u eau* at a!!. #egu!ato * *aid Ame i$an '() e** $u*tome * *hou!d e()e$t efund* -% end of Ma $h 2013. The $om)an% a!*o ag eed to $om)en*ate +27.5 mi!!ion in fine* to the egu!ato *. The $om)an%& !ong 0no/n fo it* in*)i ationa! $a d* and mo e aff!uent $u*tome -a*e& *aid it had out!ined )!an* to add e** ea$h of the .io!ation* and /i!! $oo)e ate enti e!% /ith egu!ato *. The $om)an% i* the $ount %1* -igge*t $ edit $a d i**ue -% )u $ha*e .o!ume. 7a*t %ea & the !ende had e.enue of +30 -i!!ion& u) 9 )e $ent f om a %ea ea !ie . The mo.e again*t the -an0 i* )a t of a - oade )u*h -% fede a! and *tate egu!ato * to gua d $on*ume * f om i!!egitimate $ edit $a d and de-t $o!!e$tion ) a$ti$e* a* mi!!ion* of Ame i$an* *t ugg!e to )a% thei -i!!* in an unde ) e**u e e$onom%. In the !ate*t mo.e again*t Ame i$an '() e**& fede a! egu!ato * *aid that a!! .io!ation* a*ide f om the $ edit unfai ne** a e att i-uted to defi$ient management o.e *ight of the -an01* *e .i$e ) o.ide *. 8 o-!em* at Ame i$an '() e** *u fa$ed in Fe- ua % 2011 du ing an e(amination of 9entu ion 3an0& and *oon the 8 ote$tion 3u eau1* /e e - eathing on the ne$0 of the othe Ame i$an '() e** unit*. 8a ti$u!a !% t ou-!e*ome /e e the -an01* de-t $o!!e$tion ) a$ti$e*. A))ea!ing to $on*ume * /ho /anted to $!ean u) thei $ edit *$o e*& a ) o$e** that i* u*ed -e%ond the !ending a ena to *ometime* e.en dete mine em)!o%ment e!igi-i!it%& Ame i$an '() e** to!d $u*tome * that tho*e *$o e* /ou!d im) o.e if the% )aid off o!d de-t*. De*)ite tho*e ) omi*e*& egu!ato * found Ame i$an '() e** ne.e e)o ted tho*e )a%ment* to the $ edit agen$ie*. Man% of the de-t* /e e *o o!d that the% no !onge -!emi*hed the $ edit e)o t* eithe .

In a e$ent )u-!i$ *tatement& Ame i$an '() e** *aid it /a* $ontinuing it* o/n inte na! e.ie/* and i* a!*o $oo)e ating /ith egu!ato * in thei ongoing egu!ato % e(amination of add:on ) odu$t* in a$$o dan$e /ith an indu*t % /ide e.ie/. The $om)an%1* a**i*tant di e$to ;ent Ma 0u* *aid that Monda%1* enfo $ement a$tion of efunding ,5 mi!!ion do!!a * /a* intended a* a me**age to a!! entitie* < the e a e $on*e=uen$e* fo .io!ating the !a/. >nde the dea! /ith egu!ato *& Ame i$an '() e** mu*t *to) the ) og e** of the de$e)ti.e ) a$ti$e* and *et u) inde)endent audito * to en*u e that it* ) a$ti$e* a$t in a$$o dan$e /ith /ith $on*ume ) ote$tion !a/*. The fine* and $u*tome efund* /i!! -e )aid& fo the mo*t )a t& -% e*e .e* e*ta-!i*hed in ) e.iou* =ua te *& Ame i$an '() e** *aid. It /ou!d definite!% - ing -a$0 *ome of the !o*t $onfiden$e of the $u*tome * to/a d* Ame i$an '() e** no/ that the%1 e t %ing to e)a% thei $u*tome *.

Source: htt):??///.n%time*.$om?2012?10?02?-u*ine**?ame i$an:e() e**:to: efund:,5: mi!!ion.htm!@ efA-u*ine**<B A0