New Consumer Agency Announces First Enforcement Action, Accuses Capital One of Deceptive Marketing
Posted Jul 18, 2012 03:10 pm CDT
The Consumer Financial Protection Bureau has taken its first public enforcement action days before its one-year anniversary.
The CFPB accused Capital One Bank of using deceptive tactics in its marketing of credit cards, report the New York Times DealBook blog, the Huffington Post and the Hill’s On the Money Blog. Capital One will settle the case by paying $140 million in customer refunds and a $25 million fine, according to the stories and a press release.
Capital One is accused of using pressure and misleading tactics to sell credit card add-ons such as payment protection and credit monitoring. Some customers were led to believe the products were mandatory or free, or that they would help improve their credit scores, according to the press release. Others bought protection for disability and job loss even though they were already disabled or unemployed and could not use the benefit.