American Express to Pay $230 Million to Settle Accusations of Deceptive Practices

Prosecutors alleged that its employees misled customers by saying fees for two wire-transfer services were fully tax-deductible and points earned were tax-free.

The American Express logo and trading symbol are displayed at the New York Stock Exchange on Dec. 6, 2017. Brendan McDermid/Reuters

American Express has agreed to pay more than $247 million to resolve criminal and civil investigations into alleged deceptive marketing and fraudulent sales tactics related to its wire transfer and credit card products, according to the U.S. Department of Justice (DOJ).

The total settlement includes a $77.7 million criminal fine, $60.7 million in forfeiture under a non-prosecution agreement with the U.S. Attorney’s Office for the Eastern District of New York, and a $108.7 million civil penalty. The company noted that after applying credits, it will pay approximately $230 million.