I’ve written about American Express gift cards several times in the past, mostly when they had a promotion waiving both their purchase fees and shipping fees. In such cases, they were a cheap and efficient way to “time-shift” your purchases if you needed to meet a spending threshold soon to obtain a sign-up bonus, or if you needed some miles sooner for a reward.
American Express recently agreed to a class action settlement regarding these gift cards. Per the official settlement website, here is a summary:
The lawsuit claimed that American Express did not fully disclose all gift card contract terms, and misrepresented the value of the cards. The gift cards were subject to various fees, such as monthly fees and check issuance fees, resulting from trying to make transactions using multiple forms of payment. American Express denies that it did anything wrong, and the Court did not decide which side was right.
The dates for this settlement have been in flux, but the current deadline for claim submission is November 16, 2015. You can also exclude yourself from the settlement by this date. There is a scheduled court hearing on January 22, 2016 to consider final approval of the settlement.
You are a Class Member if you purchased, received, held or used a gift card issued by American Express from January 1, 2002 through September 21, 2011. Any gift card with an American Express logo counts. If you bought a card and gave it to someone else as a gift, you cannot get a payment for that card. The gift receiver should make a claim.
- Depending your specific claim details, if you have a record of your gift card number the settlement offers from $5 to $20 per gift card ($40 per Class Member max, total) from a total fund of about $6.75 million.
- If you don’t have a record of your gift cards and American Express can’t find your records based on your personal information, your max total is $5.
- You can also request to buy a $100 AmEx Gift Card without paying the purchase fee or the shipping/handling fee.
Each Class Member who unsuccessfully tried a split-tender transaction can get up to $20. Those who incurred monthly fees can get up to $8. Those who paid a check issuance fee can get up to $5. A Class Member can claim one or all of these amounts, but no Class Member may get more than $20 per gift card or $40 total. Class Members who held an American Express Card and unsuccessfully tried a split-tender transaction and as a result incurred either a monthly fee or a check issuance fee, and who do not know their American Express gift card number, can get a total of $5. If these claims total more than $1,000,000, the $5 payments will be reduced.
Anyone, even if not a Class Member, can cash out any AmEx gift card with a balance of $25 or less. Fill out a claim form, provide your e-mail, and if the settlement is approved they will send you claim instructions. They will refund your unused balance at no cost. Useful if you don’t want to use the Amazon gift card trick (or have less than 50 cents on it).
If you’re the type of person that keeps detailed records or all your old cards in a drawer, you may be eligible for the max $40 benefit per Class Member. Otherwise, anyone can ask to cash out their small balances. You must fill out one claim form for each gift card and submit it no later than midnight November 16, 2015.