American Express faces recent class actions, data breach

American Express class action lawsuits, data breach overview: 

• Who: American Express recently disclosed it suffered a data breach. Consumers also filed several class action lawsuits against the company. 
• Why: The class action lawsuits involve claims of data sharing, high swipe fees and fraudulent transactions. The data breach may have exposed card account numbers, names and expiration dates. 
• Where: The class action lawsuits were filed in U.S. federal courts. 

Consumers filed several class action lawsuits against American Express over claims involving data sharing, swipe fees and fraudulent transactions. 

The credit card company also recently disclosed it suffered a data breach it says exposed card account numbers, names and other account information. 

AmEx shares credit card applicant data with Facebook, class action claims 

A consumer filed a class action lawsuit against American Express over claims the company shared credit card applicant data with Facebook without the applicant’s consent or knowledge.

The class action lawsuit claims American Express uses the Facebook tracking pixel, which it allegedly  to send credit card applicants’ sensitive data to the social networking company without the applicants knowledge, consent or authorization. 

American Express installed the tracking pixel on its credit card application webpages, according to the class action. 

“By failing to receive the requisite consent, defendant breached its duties of confidentiality and unlawfully disclosed plaintiff’s personally identifiable information and protected financial information,” the class action states.

Class action says American Express charges high swipe fees 

Ten small businesses filed a class action lawsuit against American Express last month over claims the company charges swipe fees that are higher than others and has rules prohibiting merchants from offering a lower price for using cheaper payment options.

The lawsuit claims American Express charges swipe fees of as much as 3% per transaction for small businesses.

“For many of these merchants, credit card swipe fees eat up roughly half of what the small business owner can take home at the end of the month,” the class action states. 

The plaintiffs argue the swipe fees take the heaviest toll on small businesses with tight margins, such as restaurants, grocery stores and local retailers. 

AmEx failed to protect Serve prepaid debit card accounts against fraud, class action claims 

A consumer filed a class action lawsuit against American Express in February over claims the company failed to protect against fraudulent transactions involving its Serve prepaid debit card accounts. 

The class action lawsuit argues American Express promised to protect Serve prepaid debit card account holders from fraud yet failed to do so with transactions associated with tax returns issued to prepaid debit card accounts. 

Serve refused to refund tax return funds stolen from consumers’ prepaid debit card accounts, according to the lawsuit.

American Express data breach may have exposed names, card account nos., etc.

In March, American Express notified customers about a data breach the company says may have exposed card account numbers, names and other account information, including expiration dates. 

American Express attributed the data breach to a third-party service provider that experienced unauthorized access to its system. It says the incident did not compromise its own systems, the company says in a copy notification letter sent to the Massachusetts Office of Consumer Affairs and Business Regulation.

American Express advises customers to be careful when checking their account statements over the next 12-24 months and enable notifications in its mobile app so they can receive instant notifications about any potentially suspicious activity. 

Have you been injured by American Express? Let us know in the comments.

Read About More Class Action Lawsuits & Class Action Settlements:

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• Fifth Third class action claims bank charges fees for deposited checks that bounce
• Bank of America class action claims company wrongfully charges customers fee for depositing bad checks
• Wells Fargo hit with recent class actions, agrees to settlement