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Another Month, Another CFPB Enforcement Action

American Express Ordered to Refund $85 Million and Pay $27.5 Million in Fines

October 4, 2012

For the third time in as many months, the CFPB announced the resolution of an enforcement action against a major credit card provider. After reaching settlement with Capital One and Discover, the CFPB set its sights on American Express. On October 1, 2012, the CFPB issued multiple consent orders requiring several American Express companies “to refund an estimated $85 million to approximately 250,000 customers for illegal card practices” and pay $27.5 million in penalties.

According to the CFPB, its investigation uncovered numerous violations and “at every stage of the consumer experience, from shopping for cards, to applying for cards, to paying charges, and to paying off debt.” About its latest enforcement action, CFPB insiders have warned that the Bureau “want[s] to make it more expensive to break the law than to abide by it, imposing consequences for legal violations and creating a level playing field."  

This third action undoubtedly confirms the CFPB’s message to all financial services providers that they should beware. The Bureau has not only put financial institutions on notice that it intends to scrutinize their practices and procedures, but also that it will continue to share resources and information with state regulators and law enforcement agencies, and vice versa.

The authors of Dykema’s Consumer Financial Protection Bureau Law Blog, an industry leading resource on all things CFPB and consumer financial services-related, are closely monitoring the Bureau’s every move. Our full report on the recent actions against American Express is featured in this week’s feed. Click here to read our full blog post.  

Should you have any questions about the CFPB's recent enforcement actions, please contact the author of this alert, Jeffrey Jamison at 312-627-2101, or Richard Gottlieb, Director of Dykema's Financial Industry Group at 312-627-2196.


As part of our service to you, we regularly compile short reports on new and interesting developments in our business services program. Please recognize that these reports do not constitute legal advice and that we do not attempt to cover all such developments. Rules of certain state supreme courts may consider this advertising and require us to advise you of such designation. Your comments on this newsletter, or any Dykema publication, are always welcome. © 2012 Dykema Gossett PLLC. 

As part of our service to you, we regularly compile short reports on new and interesting developments and the issues the developments raise. Please recognize that these reports do not constitute legal advice and that we do not attempt to cover all such developments. Rules of certain state supreme courts may consider this advertising and require us to advise you of such designation. Your comments are always welcome. © 2018 Dykema Gossett PLLC.