Consumer Watchdog Fines Capital One for Deceptive Credit Card Practices
Source: NY Times
The nation’s consumer watchdog on Wednesday delivered its first enforcement action against the financial industry, fining Capital One for pressuring and misleading more than two million credit card customers.
Capital One, one of the nation’s biggest banks and credit card lenders, agreed to pay $210 million to resolve the case, the latest legal setback for the financial industry.
The Consumer Financial Protection Bureau, Wall Street’s newest regulator, accused Capital One of “deceptive marketing tactics.” The credit card company — which is known for its catchy television ads, asking “what’s in your wallet” — received a regulatory rebuke for misleading customers into buying unnecessary products like payment protection and credit monitoring, according to the consumer agency.
As part of the deal with the consumer bureau, Capital One must reimburse about $140 million to customers. In a separate legal action, the Office of the Comptroller of the Currency, which regulates national banks, also sanctioned Capital One.
Read more: http://dealbook.nytimes.com/2012/07/18/consumer-watchdog-fines-capital-one-for-deceptive-credit-card-practices/?hp
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