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Established Contributor
jcstarkey8826
Posts: 704
Registered: ‎06-01-2012

This makes me not want an AMEX....

[ Edited ]

If this has already been posted Im sorry. I've been off for few days and didnt find anything via search :smileyhappy:

 

 

American Express, the credit card giant with a reputation for affluent customers and customer service, agreed to pay $112.5 million to resolve charges from banking regulators that it engaged in illegal card practices......The card company will pay $85 million to about 250,000 consumers via a check or a credit in their accounts by March, the CFPB said Oct. 1. In addition to paying customers refunds, American Express is required to pay $27.5 million in penalties: a $14.1 million fine to the CFPB, $3.9 million to the FDIC, $9 million to the Federal Reserve and $500,000 to the Office of the Comptroller of the Currency.

 

Article further truncated because of copyright issues. More can be found here:

http://online.wsj.com/article/SB10000872396390444138104578030363791360552.html

 

-llecs, myFICO moderator

In my wallet: GCU Patinum Visa 1500 CL, Charter One Platinum Rewards 500 CL, Chase Freedom 800 CL, Wal Mart Discover Card 6300 CL, Kay Jewelers 3000 CL
Frequent Contributor
Razeus
Posts: 387
Registered: ‎04-02-2012

Re: This makes me not want an AMEX....

AMEX isn't the only ones.

 

Discover had to pay for something similar.

 

Visa/MC just settled a huge class action suit from their merchants for swipe fee charges.

 

This is the game we play.

My Wallet:
Discover It $11,000 | Chase Freedom $5,000 | AMEX BCE $3,000 | Paypal Extras Platinum $5,000 | Wells Fargo $1,000 | AMEX Zync NPSL
Valued Contributor
navigatethis12
Posts: 1,881
Registered: ‎01-24-2012

Re: This makes me not want an AMEX....

From what I read, it was pretty clear that the bonus points were equal to $300 after redemption. It also says that American Express told people that if they paid off their previous debt, they could open a new card. That may seem wrong to some people, but obviously American Express wants their money and if the people were so gullible to believe American Express would forget the past, too bad for them.

Established Contributor
jcstarkey8826
Posts: 704
Registered: ‎06-01-2012

Re: This makes me not want an AMEX....

Yes, Discover and Capital One were mentioned in that. I was more upset with the age discrimination part. I've always seen AMEX as out of my league. I can see how it works for others, but I can't justify a high annual fee with good rewards vs. no AF with ok rewards. Just my thinking/opinion, but I can see AMEX working for many others. Just read this and thought Id share with everyone.

In my wallet: GCU Patinum Visa 1500 CL, Charter One Platinum Rewards 500 CL, Chase Freedom 800 CL, Wal Mart Discover Card 6300 CL, Kay Jewelers 3000 CL
Established Contributor
Cdnewmanpac
Posts: 767
Registered: ‎01-16-2012

Re: This makes me not want an AMEX....

The age discrimination issue was that for some charge cards, the acceptance criteria were different (I suspect easier) for those under the age of 35. It is perfectly legal to offer different criteria for "college students" and you are always permitted to discriminate in favor of the elderly, but current law makes it illegal to give any preference in any interaction for being younger. I suspect it was this aspect of the settlement that led to the discontinuation of the zync product, rather than the other speculations offered in recent threads.

In wallet: Ink Plus 10k, AMEX TE 25k. In bag: CSP 16k, USAA WMC 15k, Hyatt 13k, United MPE 12k, AMEX HHonors 3k. In SD: Cap 1 QS 5k, Discover IT 7k. FICO 08 says my EQ is now 844, was 510 in 2010.
Valued Contributor
Duncanrr
Posts: 2,841
Registered: ‎06-08-2012

Re: This makes me not want an AMEX....

Also, don't forget the recent Wells Fargo settlement for alleged racial discrimination.

 

http://www.nytimes.com/2012/07/13/business/wells-fargo-to-settle-mortgage-discrimination-charges.htm...

 

 

I imagine that these types of stories are just one reason why FICO  scores were invented.  While not condoning these actions, discrimination occurs everyday.  Unless its a pattern or practice of behavior on the part of the lender then I'll not hold it against them.  AMEX and WF have both been good to me so far.  I have heard horror stories from others (close friend had a disaster of a loan closing on his house with WF) but I'll try not to judge a lending institution on the basis of a few bad actors.



Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

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Regular Contributor
dude11
Posts: 237
Registered: ‎06-07-2011

Re: This makes me not want an AMEX....

People here seem to put some banks or credit card companies on a pedestal such as Amex. At the end of the day you have to remember they are all the same. GREEDY!

Established Contributor
jcstarkey8826
Posts: 704
Registered: ‎06-01-2012

Re: This makes me not want an AMEX....


dude11 wrote:

People here seem to put some banks or credit card companies on a pedestal such as Amex. At the end of the day you have to remember they are all the same. GREEDY!


Indeed. I can't say I wouldnt do business with them because of this. It does make me think twice about it though. Only because I was already  on the fence. If I could clearly see the value of an AMEX I would get one in the future, but not seeing the value and companies that get fined that heavily... i'll stay away for now. I've worked for banks that have been fined heavily and was able to witness their greedy ways. Many people will love the product and company, while many will be in another boat. I just choose what makes sense to me and hope for the best haha

In my wallet: GCU Patinum Visa 1500 CL, Charter One Platinum Rewards 500 CL, Chase Freedom 800 CL, Wal Mart Discover Card 6300 CL, Kay Jewelers 3000 CL
Valued Contributor
navigatethis12
Posts: 1,881
Registered: ‎01-24-2012

Re: This makes me not want an AMEX....


dude11 wrote:

People here seem to put some banks or credit card companies on a pedestal such as Amex. At the end of the day you have to remember they are all the same. GREEDY!


I would not say they are greedy, they just want to make money. They are a business and a business must make a profit, otherwise they will not a business for much longer. It is no different than people singning up for cards and deposit accounts, collecting the bonus, closing it, and doing it again. Everyone does what is best for them and that is all the banks, credit unions, and credit card companies are doing.

 

Valued Contributor
Dustink
Posts: 2,980
Registered: ‎10-02-2012

Re: This makes me not want an AMEX....

[ Edited ]

jcstarkey8826 wrote:

If this has already been posted Im sorry. I've been off for few days and didnt find anything via search :smileyhappy:

 

 

American Express, the credit card giant with a reputation for affluent customers and customer service, agreed to pay $112.5 million to resolve charges from banking regulators that it engaged in illegal card practices......The card company will pay $85 million to about 250,000 consumers via a check or a credit in their accounts by March, the CFPB said Oct. 1. In addition to paying customers refunds, American Express is required to pay $27.5 million in penalties: a $14.1 million fine to the CFPB, $3.9 million to the FDIC, $9 million to the Federal Reserve and $500,000 to the Office of the Comptroller of the Currency.

 

Article further truncated because of copyright issues. More can be found here:

http://online.wsj.com/article/SB10000872396390444138104578030363791360552.html

 

-llecs, myFICO moderator


Maybe that is why they approved me and other young applicants recently. We have scores to support the card, but we do not have history to support them. Maybe Amex thought a decline would indicate discrimination. To me it is not discrimination it is stimple stats, young people fail to pay their debts more frequently than middle aged individuals. Why aren't they sueing the insurance and rental car companies for charging young people more?

 

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:21    


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