American Express to pay $230 million to settle DOJ fraud probe, deceptive marketing claim [View all]

Source: NBC News/CNBC

Jan. 16, 2025, 2:40 PM EST / Source: CNBC


American Express will pay a total of about $230 million to resolve federal wire fraud investigations, and to settle civil allegations of deceptive marketing, the company said Thursday.

The tally includes more than $138 million as part of a non-prosecution agreement with the U.S. Attorney’s Office in Brooklyn, New York, related to allegations that American Express gave customers “inaccurate tax advice” for two wire products.

Separately, the banking giant will pay $108.7 million to resolve civil claims by the Department of Justice’s Civil Division that it deceptively marketed credit cards to small businesses, among other allegations.

Amex said it has also reached an “agreement in principle with the Staff of the Board of Governors of the Federal Reserve System,” which it expects to finalize in the coming weeks. “Pursuant to the agreements and after crediting, American Express will pay approximately $230 million in total to resolve these matters,” Amex said.

Read more: https://www.nbcnews.com/business/business-news/american-express-pay-230-million-settle-doj-fraud-probe-deceptive-mark-rcna188031