American Express officials said the global services company has resolved regulatory review concerns raised by the Consumer Financial Protection Bureau (CFPB).
The company said the matter stemmed from a previously disclosed internal review of American Express card product offerings in Puerto Rico, the U.S. Virgin Islands (PRVI) and the Pacific Territories determining certain cards issued in those markets through its international business did not uniformly have the same terms, conditions and features as the cards the company offered in the Continental United States.
In 2013, company officials said, American Express reported the matter to the CFPB and changed the terms and features of these cards to match its mainland products, with the company identifying cases where customers would have benefited from having the Continental U.S. terms and features.
CFPB officials said while the bureau acknowledges American Express took responsibility for its errors and independently provided restitution to its customers, the CFPB maintains the differences between the cards the company issued in the U.S. Territories and those it issued in the Continental U.S. prior to March 2013 amounted to discrimination. American Express does not agree with the CFPB’s assertion.
American Express said the company is committed to making its products available to every qualified person regardless of race or ethnic background, does not use race or ethnicity as a determining factor for credit and does not tolerate discrimination in any form and is committed to ensuring that consumers are treated fairly.
Officials said the company decided to settle with CFPB rather than go through years of litigation that would have provided no additional value to any of its customers.