Monday, 24th June, 2024
Monday, 24th June, 2024

American Express probed over sales practices

American Express disclosed a pair of
federal probes over its sales practices, according to a securities filing
Friday.

AmEx said it was cooperating with a January 2021 grand jury subpoena from
the US Attorney’s Office in the Eastern District of New York over its sales
practices for small business cards.

That disclosure followed reports the company had used questionable tactics
to sign up small businesses.

The credit card company also has received a civil investigative demand
from the US Consumer Financial Protection Bureau over its sales practices to
consumers, AmEx said in a filing in with the US Securities and Exchange
Commission.

“We are cooperating with all of these inquiries and have continued to
enhance our controls related to our sales practices, ” AmEx said in the
filing.

“We do not believe this matter will have a material adverse impact on our
business or results of operations.”

The Wall Street Journal reported last month that AmEx faced scrutiny from
a number of federal agencies over whether it used strongarm and misleading
tactics to sign up small businesses.

An earlier report in the Journal recounted instances where AmEx
salespeople had misrepresented card rewards or issued unrequested cards to
boost sales figures.

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