Consumer Bureau Action Tracker

CFPB – Capital One Bank


State

Nationwide

target

Capital One Bank

Topics

Enforcement, Add-On Products, Credit Cards

In July 2012, the CFPB issued a consent order to Capital One Bank for “mislead[ing] and pressur[ing] customers into purchasing unnecessary products.” Capital One was ordered to refund $150 million to approximately 2.5 million customers for misleading them into purchasing “payment protection and other add-on products sold with [Capital One] credit cards” which would allegedly “improve their credit scores and help them increase the credit limit” on their cards. Capital One also agreed to pay a $35 million fine to its bank regulator, the Office of the Comptroller of the Currency,” and a $25 million fine to the CFPB.

  • The CFPB “ordered Capital One Bank to refund $150 million to about 2 million customers for deceptive marketing of payment protection and other add-on products sold with its credit cards.” The CFPB claimed customers were “misled into believing the products would improve their credit scores and help them increase the credit limit.” [Jim Puzzanghera, “Capital One To Refund $150M To Customers,” Los Angeles Times, 07/18/12]
  • Capital One agreed to pay “$210 million to resolve charges that it misled and pressured customers into purchasing unnecessary products.” It agreed to return “$150 million to 2.5 million consumers enrolled in debt cancellation as well as credit and identity monitoring products on or after Aug. 1, 2010.”

As part of the agreement, Capital One paid a $35 million fine to the Office of the Comptroller of the Currency. It also had to pay $25 million to the Consumer Financial Protection Bureau to “settle an enforcement order tied to the alleged actions.” [Danielle Douglas, “Capital One To Pay $210M For Deceptive Credit Card Practices,” Washington Post, 07/18/12]

Status

Inactive or Resolved


2012-CFPB-0001 7/18/2012 7/18/2012

CFPB Probe into Capital One Credit Card Marketing Results in $140 Million Consumer Refund
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/capital-one-bank/

  • Consumer Financial Protection Bureau (CFPB)
  • Administrative filing
  • None
  • Bank
  • $210,000,000
  • 2,500,000

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