What sales practices are under scrutiny at AmEx?

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American Express Faces Federal Scrutiny Over Small Business Card Sales Tactics

American Express is currently under federal investigation concerning its sales practices, particularly those related to small business credit cards. These probes involve allegations of questionable, strong-arm, and misleading tactics employed to onboard small businesses. The company disclosed these investigations in a recent securities filing, indicating cooperation with the authorities.
Grand Jury Subpoena Issued by US Attorney's Office

In January 2021, American Express received a grand jury subpoena from the US Attorney’s Office in the Eastern District of New York. This subpoena specifically targets the company's sales practices concerning its small business card offerings. The investigation stems from reports suggesting that the company may have engaged in aggressive or deceptive methods to sign up small businesses for these products.
Civil Investigative Demand from Consumer Financial Protection Bureau

In addition to the subpoena, American Express has also received a civil investigative demand from the US Consumer Financial Protection Bureau (CFPB). This demand focuses on the company's broader sales practices directed towards consumers. The CFPB's inquiry aims to examine the methods AmEx uses when selling its products and services to the general public.
Allegations of Misrepresentation and Unrequested Card Issuance

Reports have surfaced detailing specific instances of alleged misconduct by AmEx sales personnel. These accounts suggest that salespeople have misrepresented the benefits and rewards associated with credit cards. Furthermore, there are claims that unrequested cards were issued to customers simply to inflate sales figures and meet targets, a practice that raises concerns about consumer consent and fair dealing.

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What sales practices are under scrutiny at AmEx?

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