AGC Class Action Lawsuit, Up to $40 Rebate

This is a proposed settlement in a class action lawsuit offers money to eligible users and holders of approximately 70 million American Express gift cards, plus benefits for others, including those who bought gift cards for other people. You are included as a “Class Member” if you purchased, received, held or used a gift card issued by American Express from January 1, 2002 through September 21, 2011. If your gift card has an American Express logo on it, it is part of the settlement.

Amex Gift Cards

The lawsuit claimed that American Express did not fully disclose all gift card contract terms, and misrepresented the value of the cards. The gift cards were subject to various fees, such as monthly fees and check issuance fees, resulting from trying to make transactions using multiple forms of payment. 

Specifically, it was claimed that American Express gift cards could not be used in “split-tender” transactions (using a gift card plus another form of payment), preventing cardholders from using up a gift card’s full value and that any leftover value would then be used up by monthly fees unless the cardholder paid a “check issuance” fee.

American Express denies that it did anything wrong, and the Court did not decide which side was right.

Each Class Member who unsuccessfully tried a split-tender transaction can get up to $20. Those who incurred monthly fees can get up to $8. Those who paid a check issuance fee can get up to $5. A Class Member can claim one or all of these amounts, but no Class Member may get more than $20 per gift card or $40 total. There’s a total fund of about $6.75 million and depending on how many valid claims are received each payment could be less, but not more.

You must submit a claim form to ask for a payment or other benefits. Fill out the attached claim form and mail it back, postmarked by November 16, 2015.

Most readers should qualify for the rebate, although I don’t think many will be able to provide card numbers from more than four years ago.

Settlement Details

HT: doctor of credit

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