Two American Express (AmEx) banking subsidiaries were ordered to repay their consumers millions of dollars after the Consumer Financial Protection Bureau (CFPB) discovered discriminating actions against customers in Puerto Rico and other United States territories.

According to a press release, AmEx provided credit cards with terms that were inferior to those available in the 50 states, while also discriminating against certain consumers with Spanish-language preferences. Over the course of at least ten years, more than 200,000 consumers were harmed by American Express’ discriminatory practices, which included charging higher interest rates, imposing stricter credit cutoffs, and providing less debt forgiveness.

‘Consumer financial protections are not confined within the 50 states,’ said CFPB Director Richard Cordray. ‘American Express discriminated against consumers in Puerto Rico and the U.S. territories by providing them with less-favorable financial products and services. They have ceased this practice and are making consumers whole,’ he added.

The Director of CFPB, however, revealed that at the time ‘no civil penalties are being assessed in this matter’ this in due part because the company has ‘fully cooperated with our investigation’.

In 2013, AmEx self-reported to the Bureau differences between its Puerto Rico and U.S. Virgin Islands cards (collectively, Puerto Rico cards) and its cards offered in the 50 U.S. states (U.S. cards), as well as differences with respect to certain consumers with a Spanish-language preference. Through the course of a supervisory review, the Bureau concluded that, from at least 2005 to 2015, American Express’ Puerto Rico cards had different—and often worse—pricing, rebates, and promotional offers, underwriting, customer and account management services, and collections practices than its U.S. cards. The Bureau’s review did not find that American Express intentionally discriminated against its customers but rather found that these differences were the result of American Express’ card management structure, which had different business units overseeing its Puerto Rico cards and U.S. cards.

The Bureau’s review did not find that AmEx intentionally discriminated against its customers but rather found that these differences were the result of American Express’ card management structure, which had different business units overseeing its Puerto Rico cards and U.S. cards.

AmEx has paid approximately $95 million in consumer redress during the course of the Bureau’s review and American Express’ review; today’s order requires it to pay at least another $1 million to fully compensate harmed consumers.

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