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.