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October 2, 2012

Amex to Pay $112.5M over Credit Card Abuses 
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The credit card giant American Express has agreed to pay $112.5 million
to settle allegations of abusive debt collection and late-fee charges as
well as deceptive marketing. The Consumer Financial Protection Bureau
says Amex customers were illegally charged late fees based on a
percentage of their debt while others were given the impression partial
payment would result in the forgiveness of their remaining balance. The
company will refund $85 million to customers and pay another $27.5
million to government agencies.

 

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