Amex Fined $8 Million Over Unsuitable David Jones Credit Cards

American Express has been hit with an $8 million (US$5.4 million) fine after failing to ensure customers were suitable for two co-branded David Jones credit cards The development is a win for the Australian Securities and Investments Commission (ASIC) in the first case it launched over what are known as design and distribution obligations (DDO). The American Express co-branded David Jones credit cards were offered from August 2008 until July 2022 when the firm pulled the financial products. While the cards could be sourced online, 80 to 90 percent of all cards issued were handed out by retail staff in person at David Jones premises.  In its Federal Court lawsuit, ASIC said high cancellation rates of the David Jones cards showed the firm had not met its obligations to ensure they were appropriate for consumers....