The CFPB isn't really happy to sit tight. The bureau has passed new regulations and started waging cases against financial providers that run afoul of consumer protection laws, with credit card companies being the very first in the firing line. After winning suits against Discover and Capital One, American Express is the latest to settle with the Consumer Financial Protection Bureau, along with other companies, and has agreed to refund $85 million to customers.
Card businesses dealing with CFPB
The primary goal of the Consumer Financial Protection Bureau is to protect consumers from financial services, but that does not just include making new legislation. In fact, a variety of financial service providers are dealing with suits for breaking regulations associated with other organizations.
The first Consumer Financial Protection Bureau targets have certainly been credit scar companies. Over $200 million in settlements, mostly cash going to consumers have been made in suits with Discover and Capital One already, according to NBC News.
CBS explained that one suit against American Express was filed by Utah state regulators, the Federal reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Business and the Consumer Financial Protection Bureau. That lawsuit was recently settled.
Cash handed back
There were a ton of laws broken by American Express, such as discrimination of those over the age of 35, charging late fees over legal limits, violating laws for debt collection and reporting, not reporting billing disputes as mandated by law and making false claims about rewards.
A refund will be required for $85 million from American Express. The business will even be paying $27.5 million in fines for the issues.
The brouhaha over late fees, according to CBS, was due to charging late charges depending on a percentage but, according to CNN, subsidiaries American Express Centurian Bank and American Express Bank set the rate in excess of already established limits. American Express Centurian Bank also offered $300 to qualified customers who were approved for an American Express "Blue Sky" card, which some customers never received.
Age was an enormous factor in the credit scoring system at American Express Centurian Bank. That is not legal because it is known as discrimination.
Another problem with debt
Some customers were guaranteed that they would have an increased credit rating if they paid off debts older than 7 years, which do not impact credit scores at all. CBS explained that his has occurred since 2003 and still happened this year. The lies were being told at American Express, American Express Bank and American Express Centurian bank.
There are about 250,000 people who will receive part of the $85 million allocated to concessions. They should, according to NBC News, obtain it in March 2013.
Card businesses dealing with CFPB
The primary goal of the Consumer Financial Protection Bureau is to protect consumers from financial services, but that does not just include making new legislation. In fact, a variety of financial service providers are dealing with suits for breaking regulations associated with other organizations.
The first Consumer Financial Protection Bureau targets have certainly been credit scar companies. Over $200 million in settlements, mostly cash going to consumers have been made in suits with Discover and Capital One already, according to NBC News.
CBS explained that one suit against American Express was filed by Utah state regulators, the Federal reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Business and the Consumer Financial Protection Bureau. That lawsuit was recently settled.
Cash handed back
There were a ton of laws broken by American Express, such as discrimination of those over the age of 35, charging late fees over legal limits, violating laws for debt collection and reporting, not reporting billing disputes as mandated by law and making false claims about rewards.
A refund will be required for $85 million from American Express. The business will even be paying $27.5 million in fines for the issues.
The brouhaha over late fees, according to CBS, was due to charging late charges depending on a percentage but, according to CNN, subsidiaries American Express Centurian Bank and American Express Bank set the rate in excess of already established limits. American Express Centurian Bank also offered $300 to qualified customers who were approved for an American Express "Blue Sky" card, which some customers never received.
Age was an enormous factor in the credit scoring system at American Express Centurian Bank. That is not legal because it is known as discrimination.
Another problem with debt
Some customers were guaranteed that they would have an increased credit rating if they paid off debts older than 7 years, which do not impact credit scores at all. CBS explained that his has occurred since 2003 and still happened this year. The lies were being told at American Express, American Express Bank and American Express Centurian bank.
There are about 250,000 people who will receive part of the $85 million allocated to concessions. They should, according to NBC News, obtain it in March 2013.
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