We received snail mail notice announcing a class action lawsuit against American Express Credit Card Company.
The notice, promulgated by Kaufman Class Action Settlement Administrator, was snail mailed to ALL who bought, received, held or used American Express gift cards. YES, that would be about 25% of the United States population! Rust Consulting, Inc. , apparently contracted out by AmEx, mass mailed this voluminous effort to bring the credit card behemoth to justice.
The basis for the lawsuit is, roughly speaking, twofold. 1. AmEx knows full well that if one purchases, say, a $100 gift card that the holder of said card is very unlikely to use the entire $100 balance being unable to account for tax etc. 2. AmEx did not fully disclose all the gift card terms and fees thereby inflating the advertised value of the gift card.
Also, reflect on why lawyers would care about litigating such a massive effort involving literally millions of claimants, who purchased gift cards between the years 2002 and 2011, who stand to win maybe $40 per class member. No mention is made how much money Kaufman attorneys are making in the notice that you see. The notice does mention that 6.75 million dollars is the total fund, BUT does not disclose how much of the total fund is paid out for attorney fees and how much goes to class members—a familiar lawyer tactic.