01:22 PM EST, 01/16/2025 (MT Newswires) -- American Express ( AXP ) agreed to pay $108.7 million to settle claims it deceptively marketed credit card and wire transfer products and deceived its affiliate bank by feeding "dummy" information, the US Department of Justice said Thursday.

The Justice Department alleged that American Express ( AXP ) misrepresented rewards or fees when marketing credit cards to small businesses through an affiliated entity from 2014 through 2017. The company also allegedly falsified financial information for prospective customers.

Meanwhile, the company allowed certain small business customers to acquire American Express ( AXP ) credit cards without the required employer identification numbers and its employees used dummy EINs in opening small business credit cards in 2015 and H1 2016, according to the Justice Department.

The US government also alleged that American Express ( AXP ) employees made false assertions regarding wire transfer products and tax benefits from 2018 through 2021.

American Express ( AXP ) will enter into a non-prosecution agreement with the US Attorney's Office for the Eastern District of New York and pay a criminal fine and forfeiture. The company may receive a credit of $30.4 million towards its civil penalty if it makes a full payment of the forfeiture and fine.

American Express ( AXP ) did not immediately respond to a request for comment from MT Newswires.

Price: 311.89, Change: -0.43, Percent Change: -0.14