The settlement addresses misleading practices involving small business credit cards and wire transfer products.
American Express Co AXP has agreed to a $108.7 million settlement to resolve 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.
What To Know: From 2014 to 2017, American Express allegedly misled small business customers regarding credit card rewards, fees and credit checks, and submitted false income information.
Additionally, employees bypassed legal requirements by entering fabricated Employer Identification Numbers (EINs) on small business credit card applications during a product transition period, exacerbating compliance failures.
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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.
Price Action: AXP 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.
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AXPAmerican Express Co$311.36-0.31%Overview Rating:Good62.5%Technicals Analysis1000100Financials Analysis400100WatchlistOverviewMarket News and Data brought to you by Benzinga APIs