This story appeared in Bank Digest.
The Consumer Financial Protection Bureau has filed an administrative action against American Express Centurion Bank and American Express Bank, FSB, for allegedly discriminating against consumers in Puerto Rico, the U.S. Virgin Islands, and other U.S. territories--namely, Guam, American Samoa, and Northern Mariana Islands--by providing them with credit and charge card terms that were inferior to those available in the 50 states.
The CFPB also found that the banks discriminated against certain consumers with Spanish-language preferences. The two banks are subsidiaries of American Express Company and American Express Company's credit and charge card lines of business.
American Express has already paid approximately $95 million in consumer redress during the course of the CFPB's review and American Express's own review, according to the Bureau. A consent order requires the two banks to pay at least another $1 million to fully compensate harmed consumers, among other provisions. The banks consented to the issuance of the consent order without admitting wrongdoing.