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February 15, 2021

US regulators probing Amex’s cards sales practices

By Shalini mani

The US Federal investigators have launched a probe into American Express’ small business and consumer cards sales practices.

The company stated in a recent regulatory filing that it got a subpoena from the US Attorney’s Office for the Eastern District of New York concerning its small business cards sales practices.

Additionally, the company has been demanded by Consumer Financial Protection Bureau (CFPB) to provide information on its sales practices related to consumers.

Amex said in the filing: “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.”

The company also said that it has been cooperating with a review led by the Office of the Comptroller of the Currency (OCC) and the Department of Justice since last May.

This is in relation to historical sales practices regarding certain small business card sales, the company revealed.

Last month, it was reported that the federal regulators are probing whether American Express deployed ‘aggressive and misleading’ sales tactics to sell cards to small businesses.

Recent moves by Amex

Last week, American Express expanded its existing business financing product suite with the launch of Business Loans in Australia.

Last month, the company extended its work from home policy for employees to a new date 6 September 2021, from the previous 30 June 2021.

In December, American Express Ventures made an undisclosed investment in FalconX, a platform for institutions trading cryptocurrency.

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