CFPB Looking Into American Express Sales Practices for Consumer Cards
American Express disclosed last week that several federal agencies are probing its sales practices for small business credit cards and consumer cards. While some information about the investigation into the business credit card sale was already known, the consumer cards part is new.
The company said in a regulatory filing that it received a grand jury subpoena in January from the U.S. Attorney’s Office for the Eastern District of New York over its sales practices for its small business credit cards. But it also received a Civil Investigative Demand from the Consumer Financial Protection Bureau (CFPB) seeking information on sales practices relating to consumers cards.
“We are cooperating with all of these inquiries and have continued to enhance our controls related to our sales practices. We do not believe this matter will have a material adverse impact on our business or results of operations,” Amex said in the filing. American Express also said that it launched and completed an internal review of the sales practices in question and has taken “appropriate disciplinary and remedial actions.”
You can read the full regulatory filing here.