UPDATE: AmEx (AXP) Slapped on Wrist in U.S. Card Practice Settlement; Total Payment at $112.5M

(Updated - October 1, 2012 2:24 PM EDT)

American Express (NYSE: AXP) shares have all but shrugged off a news bit earlier that it entered settlements with several regulatory agencies over certain U.S. consumer credit card practices.

Though it set about a remediation plan with the likes of he Federal Deposit Insurance Corporation (FDIC), Consumer Financial Protection Bureau (CFPB), and others, which totals $85 million, AmEx will be shelling out just $27.5 million. The other portion will be paid out through its subsidiaries, will establish funds totaling $85 million for customer refunds.

Total payout will be $112.5 million.

Notable, AmEx said it established reserves in previous quarters to pay a "substantial" portion of the fines and estimated refunds.

The CFPB made a statement earlier, detailing logic behind the fines. According to its release, AmEx will reimburse the following:

• Customers who were promised $300 for signing up for a Blue Sky Credit Card will get the $300;
  
  
• Consumers who paid an illegal late fee will be reimbursed, with interest;
  
  
• Consumers who paid old debt in response to deceptive promises to report payment to credit bureaus will be reimbursed the money they paid plus interest;
  
  
• Consumers who were promised their debt would be forgiven but were denied new American Express cards because the debt was not really forgiven, will receive $100 and a pre-approved offer for a new card with terms we and the FDIC find acceptable. If the consumer already paid the waived or forgiven amount in order to get a new card, they will be refunded that amount plus interest.

Shares of AmEx are up 1.7 percent, just off of session highs.

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