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FDIC Announces Settlement With American Express Centurion Bank for Unfair and Deceptive Practices

 

Oct 1 - The FDIC and the Consumer Financial Protection Bureau have reached a settlement with American Express Centurion Bank, Salt Lake City, for deceptive debt collection and credit card marketing practices, in violation of section 5 of the Federal Trade Commission Act.

This action results from a FDIC and Utah Department of Financial Institutions examination, in which the Consumer Financial Protection Bureau joined last year. The CFPB, the Office of the Comptroller of the Currency, the Utah Department of Financial Institutions, and the Board of Governors of the Federal Reserve System took separate actions against various entities related to the bank. Under the settlements, American Express agreed to the issuance of consent orders, orders for restitution and orders to pay, which result in total restitution from all entities of approximately $85 million to more than 250,000 affected consumers, and the imposition of civil money penalties totaling approximately $27 million.

The FDIC and the CFPB determined that the bank violated federal law prohibiting unfair and deceptive practices by, among other things:

In agreeing to the issuance of the Order, the bank neither admits nor denies any liability.


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