
American Express Settles Deceptive Marketing Allegations for $108.7 Million
American Express has agreed to pay $108.7 million to settle 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. The company also submitted false income information on behalf of these customers. Additionally, employees bypassed legal requirements by entering fabricated Employer Identification Numbers (EINs) on small business credit card applications, further exacerbating compliance failures.
From 2018 to 2021, American Express was further accused of misrepresenting tax benefits for its Payroll Rewards and Premium Wire programs, charging above-market fees under false pretenses.
Alongside the settlement, American Express entered a Non-Prosecution Agreement with the U.S. Attorney's Office, agreeing to a $30.35 million credit toward criminal fines and forfeitures.
American Express shares closed marginally lower on Thursday, down 0.27% to $311.48. According to data from Benzinga Pro, AXP has a 52-week high of $314.00 and a 52-week low of $177.81.