CommentCapital One (COF, Fortune 500) will also pay the Office of the Comptroller of the Currency a $35 million penalty and refund an additional $10 million to customers for unfair billing practices.
The two actions combined bring the bank’s total payout to $210 million.
The CFPB said that Capital One, one of the nation’s largest credit card lenders, pressured and misled consumers into paying for "add on products" like payment protection and credit monitoring when they activated their credit cards.
Headquartered in McLean, Virginia, Capital One and ING Direct offer a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels.
We support regulations to improve the credit reporting process and enable consumers to have accuracy and clarity in their credit scores.
Cardholders who enrolled in a payment protection or credit monitoring product — or who tried to cancel one of these products but were persuaded by a call center representative to keep it — on or after August 1, 2010, will be refunded the money they paid for the product, as well as any finance charges, over the limit fees or interest paid, the CFPB said.
When Capital One first learned of breakdowns in late 2011, the company immediately stopped phone sales of the products and began efforts to identify impacted customers in order to provide full refunds.
Warren Jobs is a business journalist based in Palo Alto, San Francisco. Warren has a passion for financial markets and breaking news stories and loves writing about business news, stock market, and economic opinions that matters most to its audience. Warren spends a lot of time discovering and researching latest financial markets and industry news stories in order to make sure the latest and greatest stories are brought to you first on BigBoardNews.com.