CFPB Announces Significant Enforcement Action Against Capital One
In its first public enforcement case, the Consumer Financial Protection Bureau will make Capital One pay up to $210 million to settle charges of deceptive marketing credit card practices from some of the company’s third-party vendors.
Capital One will pay between $140 million and $150 million to two million consumers as a result of the bank’s telemarketers deceptively pushing such products as credit monitoring and payment protection. In addition, Capital One will have to pay fines of $25 million to the CFPB and $35 million to the Offices of the Comptroller of the Currency.
“Today’s action puts $140 million back in the pockets of two million Capital One customers who were pressured or misled into buying credit card products they didn’t understand, didn’t want, or in some cases, couldn’t even use. We are putting companies on notice that these deceptive practices are against the law and will not be tolerated.” said CFPB Director Richard Cordray in a statement.
The CFPB was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 to help in the oversight of consumer financial products. The Bureau has the authority to issue Consent Orders and take action against institutions engaging in unfair, deceptive, or abusive practices.
LowCards.com simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates. It also gives an unbiased ranking and review for each card. The LowCards.com Complete Credit Card Index is the most objective and comprehensive resource on the Internet which allows consumers to compare rates for over 1000 credit cards offered in this country. Created by Hampton & Associates, the company has been analyzing the credit card industry and supplying objective websites on various consumer expenses for twelve years.
- Discover Card’s Deceptive Telemarketing Practices Cost CompanyOver $200 Million
- Bank Of America Ordered To Refund $727 Million For Illegal Marketing Schemes
- Stay-At-Home Spouses Might Get Credit Cards
- CFPB Cracks Down on Debt Collectors
- American Express to Pay $112.5 Million in Fines & Refunds After Lying To Customers
- Federal Credit Card Complaint Database Made Public Starting Today