(WASHINGTON) — The Consumer Financial Protection Agency (CFPB) has announced yet another enforcement action. American Express will reimburse $85 million to about 250,000 customers to resolve accusations that the company violated federal law in its marketing.
CFPB announced the decision after a federal investigation found that at various periods between 2003 and spring 2012 American Express had violated consumer protection laws “at every stage of the consumer experience,” according to a CFPB release.
“Several American Express companies violated consumer protection laws and those laws were violated at all stages of the game — from the moment a consumer shopped for a card to the moment the consumer got a phone call about long overdue debt,” CFPB Director Richard Cordray said in Monday. “Today’s orders require the American Express companies to fully refund about $85 million to consumers and it requires them to make specific changes in their business practices. The American Express companies will identify the harmed customers, notify them, and make sure they get back their money.”
Customers owed in the action are expected to receive their payments by March 15, 2012.
This action is similar others against Capital One and Discover Financial, announced earlier this year. Discover agreed to pay $200 million to more than 3.5 million cardholders. Capital One agreed to refund about $150 million to more than two million customers.
Copyright 2012 ABC News Radio
Paul Menser, Bizmojo Idaho
Ahiza Garcia, CNN
Kathryn Vasel, CNN