American Express Will Help Rhode Island Card Holders

American Express Co. said Sunday that it will lend a hand to Rhode Island residents squeezed by the state’s bank crisis by offering to defer late or bounced-check fees.

“Basically, what we’re saying is any customer that’s caught up in this problem, we’re going to help out,” said Ed Cooperman, co-chairman of American Express Travel Related Services Co.

Rhode Island Gov. Bruce Sundlun closed 45 banks and credit unions Jan. 1 after their private deposit insurer, the Rhode Island Share and Deposit Indemnity Corp., asked for state conservatorship. The move froze $1.7 billion in deposits in some 300,000 accounts.

Officials say 12 of the credit unions will reopen today with federal deposit insurance. Ten more have received tentative approval to reopen. The fate of the other institutions remains unclear.

Sundlun said he hoped American Express’ action “sets an example for other companies to follow during these difficult times.”

The company established a special telephone hot line for its card holders. Customer representatives will tell card holders when their closed bank or credit union is likely to open.

American Express also will determine which of its accounts are affected by the bank crisis, and customers “will not be charged any late or bounced check fees, in the event that they have already mailed a payment,” the company said.

The company also will let customers in good standing continue to use their cards or lines of credit--even if they haven’t sent in their monthly payment.

American Express has more than 100,000 accounts in Rhode Island. Cooperman said he didn’t know how many of those customers were affected by the bank crisis.