Affinion Group Holdings, Inc., Affinion Group Inc., Affinion Group, LLC, et al.
Enforcement, Credit Cards, Add-On Products
The CFPB ordered Intersections and Affinion Group, “two vendors that sell credit card add-on products,” to send more than $6.8 million to customers who were allegedly charged “for services never rendered.” The CFPB alleged “Affinion, and more than a handful of its affiliates, charged consumers full product fees on at least 73,000 accounts but did not provide the full credit monitoring or credit reporting retrieval that were promised.” The CFPB claimed “Intersections billed, or instructed banks to bill, about 300,000 consumers who had signed up for add-on products even though they were not receiving full services.” The CFPB also ordered Affinion “to pay a $1.9 civil money penalty” and Intersections to pay “a $1.2 million penalty.”
The CFPB claimed “Intersections billed, or instructed banks to bill, about 300,000 consumers who had signed up for add-on products even though they were not receiving full services.” … Intersections has already refunded a “vast majority” of the 300,000 affected consumers partly because of earlier CFPB enforcement actions.”
“Affinion and its affiliates, which are based in Connecticut and Tennessee, have agreed to pay a $1.9 civil money penalty and $6.8 million in redress to consumers who have not yet received a refund from the company. Intersections will pay a $1.2 million penalty and about $55,000 to consumers still waiting on a refund.” [Rachel Witkowski, “In a First, CFPB Targets Source of Add-Ons It Finds Dubious,” American Banker, 07/07/15]
Inactive or Resolved