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American Express probed over sales practices, says report

AmEx stated it was cooperating with a January 2021 grand jury subpoena from the US Lawyer’s Workplace within the Japanese District of New York over its gross sales practices for small enterprise playing cards.

AFP

PUBLISHED ON FEB 13, 2021 08:57 AM IST

American Categorical disclosed a pair of federal probes over its gross sales practices, in line with a securities submitting Friday.

AmEx stated it was cooperating with a January 2021 grand jury subpoena from the US Lawyer’s Workplace within the Japanese District of New York over its gross sales practices for small enterprise playing cards.

That disclosure adopted stories the corporate had used questionable ways to enroll small companies.

The bank card firm additionally has acquired a civil investigative demand from the US Client Monetary Safety Bureau over its gross sales practices to customers, AmEx stated in a submitting in with the US Securities and Alternate Fee.

“We’re cooperating with all of those inquiries and have continued to reinforce our controls associated to our gross sales practices, ” AmEx stated within the submitting.

“We don’t imagine this matter can have a fabric adversarial influence on our enterprise or outcomes of operations.”

The Wall Road Journal reported final month that AmEx confronted scrutiny from a lot of federal companies over whether or not it used strongarm and deceptive ways to enroll small companies.

An earlier report within the Journal recounted situations the place AmEx salespeople had misrepresented card rewards or issued unrequested playing cards to spice up gross sales figures.

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