Bank of Italy source had said the central bank had ordered a halt to the issuance of new American Express credit cards in Italy saying that AMEX did not meet Italian legal requirements "with regard to USURY, MONEY-LAUNDERING, and TRANSPARENCY". 
Overbearing rates, confusing, and complicated contract wordage were at the core. 

Amex to temporarily suspend Italy card issuance
Reuters ; April 8, 2010

* American Express move follows Bank of Italy inspection
* To resume card issuance once IT upgrades completed
* Changes to align systems for anti-money-laundering rules (Recasts with American Express statement)

ROME, -American Express Italy is temporarily suspending issuance of new cards from April 12 to complete information technology upgrades after a Bank of Italy inspection, it said on Thursday.Earlier a Bank of Italy source had said the central bank had ordered a halt to the issuance of new American Express credit cards in Italy as part of a fraud and usury investigation. The source said the company did not meet Italian legal requirements "with regard to usury, money-laundering and transparency."

In a statement, American Express acknowledged that it had received a report following an inspection from the Bank of Italy.

"As a result of the inspection, the company is currently implementing an upgrade of its information technology systems and other procedures, in order to adhere more closely to the regulations applicable to payments service providers and financial intermediaries," it said.

"American Express Italy... will resume card issuance as soon as these upgrades are completed, as established by the Bank of Italy," it said, adding that it was cooperating fully with the Italian central bank.

The suspension of card issuance has no impact on existing Amex card members who can continue to use their cards as usual, it said.

A spokesman for American Express said the systems upgrade is to comply with anti-money laundering regulations and it will be up to the Bank of Italy to decide on the end to the suspension.

"We had the report a few days ago and have 30 days to reply. We are studying it," the spokesman said.

(Reporting by Giselda Vagnoni; additional reporting by Maria Aspan in New York; Editing by Will Waterman and Tim Dobbyn) 

http://www.reuters.com/article/idUSLDE63723B20100408
 

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