AmEx Fined $59M For Misleading Add-On Product Sales

American Express was fined by U.S. regulators on December 24 for deceptive and misleading practices it allegedly used when selling credit card add-on products to consumers, Reuters reported.

As a result, the issuer will need to reimburse customers $59.5 million for what the CFPB called unfair billing tactics and deceptive marketing. Upwards of 335,000 customers are said to have been affected from 2000 to 2012.

“We first warned companies last year about using deceptive marketing to sell credit card add-on products, and everyone should be on notice of this issue,” CFPB Director Richard Cordray said in a statement following the announcement.

The Federal Deposit Insurance Corporation (FDIC) and Office of the Comptroller of the Currency also imposed fines on the company.

The news follows a string of bad publicity for American Express, which just settled a class-action lawsuit launched by a group of merchants over a long-standing swipe fee rule. To learn more about this story, read the full press release by clicking here.

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