Consumer Bureau Action Tracker

CFPB v. Intersections, Inc.; CFPB v. Affinion Group Holdings, Inc., Affinion Group Inc., Affinion Group, LLC, et al.


State

Nationwide

target

Affinion Group Holdings, Inc., Affinion Group Inc., Affinion Group, LLC, et al.

Topics

Enforcement, Add-On Products, Credit Cards

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 filed a lawsuit against Intersections, Inc. in US District Court for the Eastern District of Virginia Alexandria Division. [CFPB v. Intersections, Inc., case no. 1:15-cv835, filed 07/01/15]
  • The CFPB filed a lawsuit against Affinion Group Holdings, Inc., Affinion Group Inc., Affinion Group, LLC, et al. in US District Court of Connecticut. [CFPB v. Affinion Group Holdings, Inc., Affinion Group Inc., Affinion Group, LLC, et al., case no. 5:15-cv-01005, filed 07/01/15]The CFPB ordered Intersections and Affinion Group, “two vendors that sell credit card add-on products,” to pay “nearly $10 million in combined fined and restitution for allegedly charging consumers for services never rendered.” The two vendors provided services, such as “identity theft protection and credit monitoring.”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.” … 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]

Status

Inactive or Resolved


5:15-cv-01005 7/1/2015 7/1/2015

CFPB Takes Action Against Companies for Unfair Billing of Credit Card Add-On Products and Services
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/affinion/

  • Consumer Financial Protection Bureau (CFPB)
  • Federal district court case
  • U.S. District Court District of Connecticut
  • Nonbank
  • $8,700,000

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