AmEx likely to face class action lawsuit
Credit card giant American Express could have a nationwide class action lawsuit on its hands following the rejection of its right to arbitration by the California First District Court of Appeal, according to law firm David Fried.
The suit alleges that AmEx charged cardholders for travel insurance even if they did not actually go on trips. American Express had promised to charge cardholders an insurance premium "only when you fly."
Following the decision, AmEx will be forced to defend a nationwide class actions related to certain of its travel insurance programs.
AmEx has attempted to make million of cardholders individually arbitrate claims dealing with the company's fee-paid flight insurance programs.
An American Express representative said the financial services form is disappointed with the judge's decision and is presently investigating its legal options.
Published: July 16, 2007
- APRs to stand pat as Fed puts off rate increase – Credit card users were spared higher APRs for now, but should brace for an increase before year end ...
- Wells Fargo's huge fine: inside the numbers – Wells Fargo will pay $185 million for secretly opening unauthorized accounts for its customers, and that's not the only big number connected to the case ...
- First National Bank of Omaha refunds $27.75 million for add-ons – Misleading marketing of credit card add-on products that did not deliver what they promised brings regulatory action ...