Jan 16, 2025: American Express has agreed to pay approximately $230 million to settle allegations of deceptive marketing and fraudulent account activities. The U.S. Department of Justice (DOJ) announced that the company will pay a $108.7 million civil penalty to resolve claims of violating the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) through misleading marketing of credit card and wire transfer products, as well as the use of “dummy” Employer Identification Numbers (EINs) in credit card accounts.

Key Allegations:

  • Deceptive Marketing (2014-2017): American Express allegedly misrepresented card rewards and fees to small businesses, leading to misunderstandings about the benefits and costs associated with their credit card products.
  • Unauthorized Account Practices (2015-2016): Employees reportedly used fictitious EINs, such as “123456788,” to open small business credit card accounts, allowing these inaccuracies to persist for up to two years before addressing them.
  • Misleading Tax Benefit Claims (2018-2021): The company was found to have provided false information regarding the tax deductibility of certain fees associated with their wire transfer products, misleading small and mid-sized business customers. Financial Times

Company Response:

In response to these allegations, American Express has reportedly taken corrective actions, including terminating approximately 200 employees involved in the misconduct, discontinuing the implicated wire transfer products, and implementing changes to their training and compensation systems to prevent future occurrences. New York Post

Call to Action:

If you or your business have been affected by American Express’s deceptive marketing practices or unauthorized account activities, contact us today for a consultation to explore your legal options and ensure your rights are protected.

Note: The attorneys at Sauder Schelkopf were not involved in the DOJ settlement with American Express.

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Sauder Schelkopf has a nationally recognized litigation practice. The firm currently serves as court-appointed lead counsel in courts across the country.  The attorneys at Sauder Schelkopf have recovered over $1 billion on behalf of their clients and class members. Our firm was recognized by the Legal Intelligencer’s 2022 Professional Excellence Awards. The Legal Intelligencer’s Professional Excellence Awards honor Pennsylvania law firms and attorneys who have made a significant, positive impact on the legal profession. Our firm was named in the Litigation Departments of the Year (Specialty Area category; runner-up), an award that honors the best litigation practice in a small or mid-sized firm in Pennsylvania. This recognition was based on the firm’s 2021 litigation work and its important ongoing cases. LawDragon has recognized our attorneys in its list of the “500 Leading Plaintiff Consumer Lawyers” for 2022.  This list notes: “From the opioid epidemic to toxic substances and defective products, truck accidents to wildfires and sexual abuse, these are the lawyers who stand on the front line in individual lawsuits and class actions seeking justice.” Mr. Schelkopf was named to Pennsylvania’s Best Lawyers® 2022 for Class Actions/Mass Tort Litigation. The American Lawyer named Mr. Sauder to its 2021 Northeast Trailblazers. The honor recognizes 60 lawyers who are “truly agents of change.” It “recognizes professionals in the Northeast who have moved the needle in the legal industry.” The Legal Intelligencer named Mr. Sauder and Mr. Schelkopf in its 2020 Pennsylvania Trailblazers list recognizing 31 lawyers who “have taken extra measures to contribute to positive outcomes . . . and who are truly agents of change.” The Legal highlighted the firm’s innovative work on advocacy as class counsel in large institutional sex abuse cover-ups, women’s, and children’s rights. Our attorneys have also consistently been recognized by their peers being named to Pennsylvania SuperLawyer, a distinction held by the top 5% of attorneys in Pennsylvania.  The National Trial Lawyers Association has also selected our attorneys as the Top 100 Trial Lawyers in Pennsylvania.

We Want to Hear from You

If you or your business have been affected by American Express’s deceptive marketing practices or unauthorized account activities, you can contact the attorneys at Sauder Schelkopf by filling out the form on this page.