American Express is facing enforcement action from the Federal Deposit Insurance Corp. and possibly the Consumer Financial Protection Bureau over the way late fees were assessed on some of its charge cards, according to its annual filing with the U.S. Securities and Exchange Commission.
In addition to credit cards, American Express offers charge cards that customers must pay in full each month, but some charge cards allow eligible U.S. customers to pay off certain purchases over time.
According to American Express, the FDIC and the Utah Department of Financial Institutions have been reviewing the card practices of its Centurion Bank for compliance with certain consumer protections and regulations "including the way late fees are assessed on charge cards with a lending feature." The FDIC has provided information to the Consumer Financial Protection Bureau on this topic.Знакомства с иностранцами бесплатно
In February, the FDIC notified American Express that it plans to take formal enforcement action against its Centurion Bank.
American Express states in its annual filing that it "appears likely" that the Consumer Financial Protection Bureau and Utah Department of Financial Institutions will take some type of action against Centurion Bank as well. Enforcement actions may include civil penalties and refunds to customers.
According to American Express, its Centurion Bank has made "changes to certain of its card practices" and has established an accrual for late fees it expects to refund to affected charge card customers.