American Express Prepaid Gift Cards

December 2017: The Seventh Circuit Court of Appeals affirmed the district court’s decision finding that the district court did not abuse its discretion in approving it. To read the full decision, click here.

March 2016: A federal judge granted final approval of a settlement agreement in which class members may receive a cash award of up to $20 per gift card or $40 in total. The settlement agreement also provides that class members with $25 or less remaining on a gift card may request a refund of the unused balance and that class members may purchase a new $100 gift card without paying the purchase fee or the shipping/handling fees for mail deliveries. Click here to read the motion for final approval to learn more about the settlement terms.

2007: A class-action lawsuit was filed against American Express for allegedly making misleading representations about its prepaid gift cards. Specifically, the complaint alleges that American Express misleadingly represents that its prepaid gift cards are good “ALL OVER THE PLACE” when, according to the plaintiffs, many retailers do not accept the gift cards. Plaintiffs also claim that the company misleadingly represents that the gift cards have a specific dollar value and that consumers may use the gift card to make a purchase totaling more than the amount on the card by using a second form of payment when, according to the complaint, most retailers do not let customers use two forms of payment and gift card holders are left with a “worthless” balance on their gift cards. The complaint was originally filed in state court in February 2007, transferred to federal court in March 2007, and amended in 2009. (Kaufman et al v. American Express Travel Related Services, Inc., Case No. 07-cv1707, N. D. IL.)

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