Enforcement case record
Padao v. American Express: US Backs Servicemembers on Arbitration
- Defendant
- American Express National Bank (Padao v. American Express, private class action)
- Year
- 2023
- Scale
- Class action brought by one servicemember on behalf of a class
- Statute
- 50 U.S.C. § 3937
- Court
- E.D.N.C.
- Outcome
- No settlement stated in the DOJ record; the entry documents the United States backing servicemembers’ right to press SCRA rate-cap claims as a class.
What happened
This is a private class action, not a DOJ settlement, and the ledger labels it that way so it is never mistaken for money the government recovered. A servicemember sued American Express National Bank on behalf of a class of servicemembers who held Amex credit cards or other interest-bearing obligations, alleging the bank failed to comply with Section 3937’s 6 percent cap.
On March 2, 2023 the United States filed a Statement of Interest. A Statement of Interest is a filing under 28 U.S.C. § 517 in which the United States tells a court how it reads a federal statute in a case it is not a party to. It carries no money and binds nobody, and it is the lightest instrument in this ledger.
The argument was that the SCRA gives servicemembers pursuing SCRA claims the right to participate in a class action in federal court even where a defendant seeks to enforce a contract clause mandating individual arbitration.
The record on the DOJ case page ends with that filing. Unlike the parallel Citibank matter, no ruling on the arbitration question is reported here.
The law behind this: 50 U.S.C. § 3937
Maximum rate of interest on debts incurred before military service: read the statute.
Who was covered
Servicemembers holding American Express credit cards or other interest-bearing obligations who were entitled to the 6 percent cap during a period of service. Class membership is defined by the court, not by this site.
What the settlement paid
- No settlement fund and no civil penalty. Nothing on this page is a payout.
- A Statement of Interest is advocacy about the meaning of the statute, not an enforcement action against the defendant, so there is no compensation figure to report and no claim process attached to it.
Why this case matters
Amex is the site’s single largest source of search demand, and this is the only federal filing in the ledger naming it. Worth knowing exactly what it is and is not: the United States argued a point of law here, and did not accuse Amex of anything a court has since resolved.
If you think you were affected
Rate-cap shortfalls are usually still fixable on a live account, because the 6% cap is retroactive to the first day of service once you send qualifying orders.
This page is a record of a public enforcement action against American Express National Bank. It is not a claim form, and this site cannot tell you whether you are in the covered group. These are the routes that can.
- Read the Justice Department’s own record: DOJ case page: Padao v. American Express National Bank (E.D.N.C.) . Settlement administration and any claim process are run from there, never from here.
- Start with how to request the 6% cap and get it backdated , which is the protection this case was brought under.
- Contact your nearest Armed Forces Legal Assistance office. It is free for servicemembers and dependents, and it is the right first call on any SCRA question about your own accounts. Our guide to SCRA legal help explains the options.
- Confirm your covered dates before you argue about them. The Defense Manpower Data Center issues a free military status certificate; our walkthrough shows how to pull one.
Current SCRA policy and contact details for this company: our American Express National Bank SCRA guide .
Other rate cap cases
- Citibank, N.A. (Espin v. Citibank, private class action) (2023)
- BayPort Credit Union (2022)
- Westlake Services, LLC and Wilshire Commercial Capital (2022)
- Conn Credit I, LP (2020 to 2021)
Every figure on this page is transcribed from the Justice Department record linked above, including its own hedges. Nothing is estimated or rounded. The ledger was last checked in full on July 11, 2026.
Heads up: SCRA Saver publishes general information, not legal or financial advice. Laws change and every situation differs. Confirm details with your installation legal assistance office (free for service members) or a licensed professional.