American Express Pays $108 Million To Settle Deceptive Marketing Charges
The U.S. Department of Justice announced on Thursday that American Express Co. (NYSE:AXP) agreed to a $108.7 million settlement to resolve allegations of violating the Financial Institutions Reform, Recovery and Enforcement Act.
The Department of Justice accused the financial giant of deceptive marketing and falsified record-keeping between 2014 and 2021.
From 2014 to 2017, American Express allegedly misled small business customers regarding credit card rewards, fees and credit checks and submitted false income information.
Additionally, employees bypassed legal requirements by entering fabricated Employer Identification Numbers (EINs) on small business credit card applications during a product transition period.
From 2018 to 2021, American Express was further accused of misrepresenting tax benefits for its Payroll Rewards and Premium Wire programs. The …
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