04:39:00
The CFPB isn't happy to sit tight. The bureau has passed brand new regulations and started waging lawsuits against financial providers that run afoul of consumer protection regulations, with charge card corporations being the 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 consented to refund $85 million to customers.
Card companies dealing with CFPB
The primary goal of the CFPB is to guard consumers from financial services, but that does not just consist of producing new legislation. In fact, a bunch of financial service providers are dealing with lawsuits for breaking regulations associated with other agencies.
Both Discover and Capital One have already faced suits from the CFPB amounting to over $200 million in settlements. A ton of that cash is going back to customers according to NBC News. It seems credit card companies have been the first targets.
American Express has just settled a similar suit, brought by the CFPB, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Business, the Federal Reserve, and, according to CBS, regulators from the state of Utah.
Consumers get fast cash
There were a lot of regulations 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.
American Express consented to refund $85 million to consumers and pay $27.5 million in fines.
One issue was with subsidiary American Express Centurian Bank who never gave customers the $300 reward promised for signing up for an American Express "Blue Sky" cad. CBS explained that the businesses were charging late fees based on a percentage too, according to CNN. The problem with that was that they were charging more than already established limits.
Age was a huge factor in the credit scoring system at American Express Centurian Bank. That is not legal because it is recognized as discrimination.
Looking at debt practices
At American Express and its subsidiaries, there were lies being told from 2003 until now, according to CBS. The lie was that consumers could increase their credit ratings if they paid off debts older than 7 years. These debts do not even show up on a credit score after that time frame.
There are about 250,000 people who will get part of the $85 million allocated to refunds. They should, according to NBC News, receive it in March 2013.
Card companies dealing with CFPB
The primary goal of the CFPB is to guard consumers from financial services, but that does not just consist of producing new legislation. In fact, a bunch of financial service providers are dealing with lawsuits for breaking regulations associated with other agencies.
Both Discover and Capital One have already faced suits from the CFPB amounting to over $200 million in settlements. A ton of that cash is going back to customers according to NBC News. It seems credit card companies have been the first targets.
American Express has just settled a similar suit, brought by the CFPB, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Business, the Federal Reserve, and, according to CBS, regulators from the state of Utah.
Consumers get fast cash
There were a lot of regulations 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.
American Express consented to refund $85 million to consumers and pay $27.5 million in fines.
One issue was with subsidiary American Express Centurian Bank who never gave customers the $300 reward promised for signing up for an American Express "Blue Sky" cad. CBS explained that the businesses were charging late fees based on a percentage too, according to CNN. The problem with that was that they were charging more than already established limits.
Age was a huge factor in the credit scoring system at American Express Centurian Bank. That is not legal because it is recognized as discrimination.
Looking at debt practices
At American Express and its subsidiaries, there were lies being told from 2003 until now, according to CBS. The lie was that consumers could increase their credit ratings if they paid off debts older than 7 years. These debts do not even show up on a credit score after that time frame.
There are about 250,000 people who will get part of the $85 million allocated to refunds. They should, according to NBC News, receive it in March 2013.
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