Federal investigators are investigating the practices of selling business cards to American Express Co., according to people familiar with the matter.
Inspectors General of the Treasury Department, Federal Deposit Insurance Corp. and the Federal Reserve is investigating whether AmEx used aggressive and deceptive sales tactics to sell cards to business owners and whether customers were injured, people said. They also examine whether specific employees contributed to the alleged behavior and whether higher-level employees supported it, some people said.
The currency controller’s office is also investigating the practices of selling business cards to AmEx, according to people familiar with the matter.
More than a dozen current and former AmEx employees have previously told The Wall Street Journal that some armed sellers have misled or misled small business owners into signing up for cards to increase sales. Some salespeople misrepresented rewards and card fees or issued cards that customers did not look for, they said. An AmEx spokesman said at the time that the company found only a very small number of problems, which were resolved “promptly and appropriately”, including through disciplinary action.
“We have sound compliance policies and controls and do not tolerate deviations,” an AmEx spokeswoman said this week.