AMERICAN EXPRESS Scandal: $230 Million Settlement Over Deceptive Practices
- American Express will pay $230 million to settle U.S. investigations into deceptive sales practices. The settlement covers both criminal and civil allegations. These charges involve misleading marketing of credit card and wire transfer products aimed at small businesses.
Between 2014 and 2017, American Express allegedly misrepresented card rewards and fees. They also conducted unauthorized credit checks on customers. The Justice Department accused the company of submitting false financial information for potential clients.
This settlement raises concerns about transparency in corporate sales practices. American Express aims to resolve these issues without admitting wrongdoing, showing a commitment to improving its business conduct going forward.