A class action has been filed against American Express Company and the American Express Centurion Bank on behalf of AmEx cardholders, who allege that the company denies them the 20-day grace period to make payments as stipulated in their agreements, and wrongly charges them late fees and finance charges in violation of state consumer protection laws. The action seeks restitution for all cardholders who have been paying charges due to the company's fraudulent billing practices.

The suit also alleges that American Express intentionally delays mailing monthly billing statements to account holders so that statements are not received until approximately one week after the billing period closes. American Express does not consider a payment made until it is received, rather than on the bill’s postmark date. This ensures that account holders have even less time to get their payments in on time. These billing practices result in the loss of any meaningful grace period, forcing account holders to mail their payments almost immediately upon receipt of their billing statements, in order to avoid a finance charge and/or a late fee.

The lawsuit also claims that American Express intentionally mails its billing statements in envelopes without postmarks to hide its delayed billing practices, making it impossible for cardholders to determine whether or not the delays are due to American Express or the US Postal Service.