American Express Reaches Settlement

American Express on Tuesday says they have reached a settlement with the Office of Thrift Supervision and the Federal Deposit Insurance Corporation. Those two agencies were upset with American Express regarding the company’s stance on convenience checks.

Numerous consumers reported that they were sent convenience checks but that the checks were ultimately declined. American Express says the checks were declined due to changes in the consumers’ credit limits or ratings.

In the settlement with the OTS and the FDIC, American Express has agreed to cover the fees caused by the declined checks in addition to the civil penalty. All told, the bill for American Express could be as much as $4 million.

In addition, American Express has agreed to contact bad check registries and credit reporting agencies to clear the name of those who saw their checks bounce due to their convenience check program.

American Express (Image: Flickr)