This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The 5 Dumbest Things on Wall Street This Week: Oct. 5

Stocks in this article: ABT WTSLA AXP HPQ KRFT DFS YHOO NDAQ

3. AmEx Gets Charged

American Express (AXP - Get Report) settled the bill this week. Too bad the charge was for $112.5 million.

The charge card giant announced Tuesday its plans to pony up $112.5 million in refunds and fines to resolve allegations that it stuck consumers with unlawful late fees and lied to get customers to buy extra credit card services. AmEx is refunding $85 million to about 250,000 customers and is paying $27.5 million in civil fines to satisfy the complaints of four separate federal agencies, including the Federal Reserve, the Consumer Financial Protection Bureau and Utah regulators.

Yes folks, membership does have its privileges and apparently one of those privileges is getting shafted.

Furthermore, it wasn't just a one-time thing. According to the complaint, the violations occurred from 2003 to this past spring, so the credit card giant was scamming its customers before, during and after the so-called credit crisis.

To which we say: Good for you AmEx! Why should Goldman Sachs (GS) have all the fun?

To be fair, AmEx is not the only one getting squeezed now that the Feds have finally gotten around to focusing on credit card issuer abuses. Last week, regulators announced an agreement by Discover Bank, a unit of Discover Financial Services (DFS), to refund $200 million to customers and pay $14 million in fines to settle accusations that it pressured customers to buy costly and often unnecessary add-on services like payment protection and credit monitoring.

Of course, despite the sizable settlements and clear wrongdoing, neither Amex nor Discover admitted or denied the charges.

What a crock. Maybe the next time one of these companies mails us a bill we'll try that trick too, although we doubt it will work.

3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs