Facts

Alfredo Lopez and Lauren Greene filed a class action against American Express Bank FSB and American Express Centurion Bank, alleging violations of various consumer laws.

PLAINTIFFS' CONTENTIONS:
Defendants allegedly improperly changed the interest rates for credit cards that were issued with fixed interest rates to variable interest rates. Plaintiffs alleged that defendants could not change the interest rates on those cards unless the cardholder was delinquent or in the event of a default. Plaintiffs claimed defendants charged them with a higher interest rate after incurring a balance on their American Express cards. Plaintiffs asserted causes of action 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.

DEFENDANTS' CONTENTIONS:
American Express denied any wrongdoing.

Result

American Express agreed to pay $4 million to $6 million in settlement.

Other Information

FILING DATE: Oct. 8, 2009.