American Express Co is the largest credit card provider by purchases and they are now under the microscope for some of their late fee tactics. The Federal Deposit Insurance Corp and the Consumer Financial Protection Bureau are taking action against the company for late fees that were incurred by some AmEx customers through Centurion Bank.

There are no specific details as to how much the charges were for late payments by AmEx customers but the FDIC plans to file formal action against the credit card company. It is expected that the procedures of Centurion will be changed and the bank will be charged penalty fees and be required to provide customer refunds for overcharges found. American Express spokesperson suggested the changes may ‘adversely affect the company’s operations’.

The investigation is an ongoing result of changes in the credit card industry that took effect after the financial crisis came to a head in 2008. The credit card industry was pinpointed by Congress concerning rates and fees being charged to credit card customers. The new Consumer Financial Protection Bureau is also a result of the national crisis and was instituted to better protect consumers that were essentially powerless against rising fees and changing rules.

American Express presently expects legal matters and governmental investigations to cost them anywhere from nothing to a staggering $510 million in fines, penalties, and payouts. Discover Financial Services have also been on the receiving end of these investigations that may end up hurting their bottom line.

The new credit card regulations concerning fees and penalties were enacted in August 2010 which limits how much credit card providers can charge customers that were late paying bills. Previous to the changes, consumers were seeing skyrocketing interest rate charges for minor infractions and struggling with debts that soared after penalties were assessed. Since 2010, the CFBP has been closing monitoring the credit card industry and American Express is just the latest to be investigated for unfair practices despite new regulations.

What are you looking for?

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I like American Express a lot, I don’t hide that fact. Their customer service is stellar, it’s easy to dispute fraudulent/bogus charges, and the rewards tend to be the best in the industry.

Their credit cards also look cool, and who doesn’t like to look cool?

At the same time, a number of American Express credit cards come with some hefty annual fees, which I’m not a fan of.

I’ve never embraced the idea of paying a fee to use a credit card, it just doesn’t sit well with me.

Fortunately, American Express has a number of credit cards with no annual fee, good ones at that.

So check out the following American Express cards with no annual fee:

Blue from American Express®

0% Intro APR for 6 Months on Purchases, “No Annual Fee,” Point-based Rewards Program, Instant Approval in Under 60 seconds

Blue Cash® from American Express (my personal favorite)

0% Intro APR for 6 Months on Purchases, “No Annual Fee,” Cash-Back Rewards Program, Instant Approval in Under 60 seconds

Up to 5% cash back at supermarkets, gas stations, and drugstores. Up to 1.25% everywhere else.

Blue Sky from American Express®

0% Intro APR for 6 Months on Purchases, “No Annual Fee,” Point-based Rewards Program, Instant Approval in Under 60 seconds

No Blackout Dates or Travel Restrictions, Use Points on Any Airline, Hotel, Car Rental, and More

So there it is, the Blue Family of credit cards from American Express, all fee-free, the way it should be.

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