FDIC Announces Settlement With AmEx Centurion Bank For Unfair And Deceptive Practices
Monday, October 1, 2012 - 10:56 AM
From the FDIC website:
The FDIC and the CFPB determined that the Bank violated federal law prohibiting unfair and deceptive practices by, among other things:
Misrepresenting to consumers that if they entered into an agreement to settle old debt (that was no longer being reported to consumer reporting agencies), such settlement would be reported to consumer reporting agencies and thereby improve the consumers' credit scores. In fact, no such reporting occurred.
Using settlement solicitations that implied that consumers who entered into settlement agreements to partially pay such debts would have the remaining balance of their debts forgiven, when in fact the balance remained a debt owed to American Express.
Using solicitations that misrepresented the points and awards consumers would receive upon enrollment in one of American Express' credit card products.