A settlement has been reached in a class action lawsuit that alleges that certain credit cards issued by American Express Centurion Bank and American Express Bank FSB with a fixed interest rate were improperly changed to a variable interest rate.
If you had an American Express card with a fixed interest rate and you received a notice of a rate increase or a change to a variable rate between Oct. 1, 2005 and Dec. 31, 2010, you may be eligible for benefits from the AmEx interest rate class action settlement.
According to the AmEx class action lawsuit, the interest rate on credit cards issued by American Express with a fixed interest rate could not be increased or changed to a variable interest rate unless the account was delinquent or in default.
However, the plaintiffs claim that they were charged a higher interest rate after they incurred a balance on their AmEx cards.
The plaintiffs assert claims against AmEx for violations of the federal Truth in Lending Act, California’s Unfair Competition Law and breach of the covenant of good faith and fair dealing.
AmEx denies any wrongdoing but agreed to settle the interest rate class action lawsuit to avoid the expense and distraction of litigation. AmEx has agreed to pay up to $6 million to resolve the litigation.
The American Express APR class action settlement was preliminarily approved on Feb. 16, 2016.
Class Members of the AmEx settlement include all persons and entities in the United States who had a consumer or small business AmEx credit card or charge account with American Express Bank FSB or America Express Centurion Bank and:
- Had a fixed annual percentage rate on the account that was increased or changed to a variable rate between Oct. 1, 2005 and Dec. 31, 2010; or
- Had a fixed annual percentage rate on the account and were provided notice of an increase in the fixed rate or a change from a fixed rate to a variable rate between Oct. 1, 2005 and Dec. 31, 2010.
The actual amount of money each Class Member receives depends on the total number of timely and valid claims that are filed.
Proof of Purchase
Claim Form Deadline
Alfredo M. Lopez, et al. v. American Express Bank FSB, et al., Case No. 2:09-cv-07335-SJO-MAN, in the U.S. District Court for the Central District of California, Western Division
Lopez v. AMEX Settlement Administrator
P.O. Box 3747
Portland, OR 97208-3747
Marc R. Stanley
STANLEY LAW GROUP
Michael D. Braun
BRAUN LAW GROUP PC