American Express’s settlement includes a $108.7 million civil penalty from the Justice Department and a pending agreement with the Federal Reserve|Alex Liivet
American Express has agreed to pay $230 million in penalties to settle the Department of Justice wire fraud claims and alleged deceptive practices in marketing credit cards to small-business customers.
The settlement includes a $108.7 million civil penalty from the DOJ and a pending agreement with the Federal Reserve.
Investigations revealed Amex salespeople misrepresented rewards and fees, checked credit reports without consent, and used false employer identification numbers to boost card sign-ups.
The practices began during Amex’s push to retain Costco’s small-business customers after their partnership ended in 2016. High sales targets and commissions fueled these tactics, which continued until 2021.
The Wall Street Journal’s reporting revealed these practices and aligned with government findings. Amex agreed to pay $15 million to settle similar issues in 2023.
The company stated it cooperated with authorities and ended the problematic practices.