American Express agreed to pay $112.5 million to resolve allegations that it charged unlawful late fees, discriminated against some card applicants and engaged in other illegal practices.
According to the Consumer financial Protection Bureau, American Express will pay $85 million to about 250,000 consumers – about $340 apiece. Payments will either be by check or a credit in their accounts by March 2013. In addition to paying customer refunds, American Express will pay $27.5 million in penalties plus numerous fines. The violations occurred between 2003 and 2012.
American Express plans to notify each affected customer due to receive a refund in the coming months.