2-Oct-12 World View -- American Express fined $112.5 million

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John
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2-Oct-12 World View -- American Express fined $112.5 million

Post by John »

2-Oct-12 World View -- American Express fined $112.5 million over massive consumer fraud

Syria's Foreign Minister gives farcical speech at the United Nations


** 2-Oct-12 World View -- American Express fined $112.5 million over massive consumer fraud
** http://www.generationaldynamics.com/cgi ... 02#e121002




Contents:
American Express fined $112.5 million over massive consumer fraud
Subprime mortgages are back in volume
EU finance ministers appear ready to give in to Athens rioters
Syria's Foreign Minister gives farcical speech at the United Nations


Keys:
Generational Dynamics, American Express, Greece, Troika,
Syria, United Nations, Walid al-Moualem,
League of Nations

OLD1953
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Joined: Tue Aug 11, 2009 11:16 pm

Re: 2-Oct-12 World View -- American Express fined $112.5 mil

Post by OLD1953 »

To analyze the AMEX story a bit, it says they will pay 112.5 million to settle for defrauding 250,000 customers. Doubtless the number defrauded was much higher, but suppose it was 250,000. The story says they were in this business of fraud from at least 2003 on. At 55$ per customer per year for 9 years, that would be 495$ per customer. The fine amounts to 450$ per customer, assuming it was only 250,000 involved and none of them were cheated of more than 55$ per year, both of which assumptions seem highly doubtful to me. So they keep 10% of their illegal profits and are fined the rest. (Assuming they don't have a separate unit for fraudlent promotion of course, I'm assuming they don't so the overhead is covered by the legitimate activities of the company. Otherwise I'd have to take out overhead.) That doesn't seem very punitive to me.

The bailouts will stop when the pressure to pay is exceeded by the pressure from taxpayers (in Germany) to stop paying.

Trevor
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Joined: Tue Nov 15, 2011 7:43 am

Re: 2-Oct-12 World View -- American Express fined $112.5 mil

Post by Trevor »

Yeah, the Germans are furious, especially since none of these countries are going to change their behaviors. I'm amazed that they've put up with it for as long as they have.

As for the credit card companies, I've also been hearing plenty of reports of the companies changing the due date for the bill without informing the customer, in order to make them pay late fees and earn even bigger bonuses. I know someone personally who has had this happen to him three times over the past couple of years.

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