American Express agree to pay $96 million in credit card compensation | finder.com

American Express agree to pay $96 million in credit card compensation

Peter Terlato 23 August 2017 NEWS

American Express large

Over 200,000 Spanish-language consumers affected.

Following an investigation by the U.S. Consumer Financial Protection Bureau (CFPB), American Express has been made to pay $96 million for discriminating against credit card customers in Puerto Rico, the U.S. Virgin Islands and the Pacific Territories.

The CFPB said more than 200,000 consumers at two American Express banking subsidiaries in the Spanish-speaking US territories had been affected by the company’s practices, providing them credit and charge terms substandard to those available to mainland customers.

American Express agreed to resolve the issues, which grew out of an internal review that the company began in 2012. The review determined that certain cards issued in those markets did not uniformly have the same terms, conditions and features as the cards the company offered in the Continental United States.

In 2013, American Express reported this matter to the CFPB and changed the terms and features of these cards to match its mainland products. Between 2013 and 2016, the company provided around $95 million in compensation to affected customers.

However, in a statement American Express said it “absolutely does not agree” with the claims of discrimination.

The CFPB has also ordered American Express to pay an additional $1 million in compensation and establish new principles to ensure the terms of its credit cards do not discriminate against anyone in the future.

Picture: Shutterstock

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