On August 23, 2017, the Consumer Financial Protection Bureau (CFPB) announced the resolution of an administrative action under the Equal Credit Opportunity Act and its implementing regulation, Regulation B (collectively, “ECOA”), against American Express Centurion Bank and American Express Bank, FSB (collectively, the “Issuers”). In the proceeding, the CFPB alleged the Issuers violated ECOA by (i) offering credit and charge card products and services to consumers and small businesses in Puerto Rico and other U.S. territories on less favorable terms than it offered similar products and services to consumers and small businesses in U.S. states, and (ii) conducting collection activities with consumer cardholders with Spanish language preferences without making available to such cardholders collection offers and programs comparable to the offers and programs that it made available to cardholders without Spanish language preferences.

The Issuers agreed to the entry of a consent order (“Consent Order”) but did not admit to any findings of fact or conclusions of law. Importantly, the CFPB noted favorably the Issuers’ cooperation with the CFPB’s investigation, self-reporting, and voluntary provision of approximately $95 million in remediation to affected consumers. To resolve the action, the Issuers agreed to provide at least $1 million in monetary redress to affected consumers beyond the borrower relief that was already voluntarily provided and to develop a plan to enhance the Issuers’ compliance management systems to better control the risk of similar fair lending violations in the future. In light of the Issuers’ cooperation, self-reporting, and voluntary remediation, however, the CFPB did not levy a civil money penalty or lodge allegations of unfair, deceptive, or abusive acts and practices.