The Washington Post

Capital One to pay $210M for deceptive credit card practicesCapital One to pay $210M for deceptive credit card practices

(Mark Lennihan/Associated Press)

The McLean bank has agreed to refund $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 a part of the agreement, Capital One will pay a $35 million fine to its banking regulator, the Office of the Comptroller of the Currency. It will also hand over $25 million to the Consumer Financial Protection Bureau to settle an enforcement order tied to the alleged actions.

“We are accountable for the actions that vendors take on our behalf,” said Ryan Schneider, president of Capital One’s card business, in a statement. “These marketing calls were inconsistent with the explicit instructions we provided to agents for how these products should be sold. We apologize to those customers who were impacted and we are committed to making it right.”

Capital One has agreed to discontinue the sales and marketing of any debt suspension product, debt cancellation product, credit and identity monitoring products as a part of the agreement.

The bank acknowledges that its third-party vendors did not always “adhere to company sales scripts and sales policies”and “the bank did not adequately monitor their activities.”

Speaking about the enforcement action, CFPB director Richard Cordray said, “We are putting companies on notice that these deceptive practices are against the law and will not be tolerated.”

The settlement is the first enforcement action taken by the Bureau, created two years ago to rein in on abusive behavior by financial institutions.



Success! Check your inbox for details. You might also like:

Please enter a valid email address

See all newsletters

Show Comments
Most Read



Success! Check your inbox for details.

See all newsletters

Your Three. Videos curated for you.
Play Videos
Making family dinnertime happen
Deaf banjo player teaches thousands
New limbs for Pakistani soldiers
Play Videos
A veteran finds healing on a dog sled
Learn to make this twice-baked cookie
How to prevent 'e-barrassment'
Play Videos
Syrian refugee: 'I’m committed to the power of music'
The art of tortilla-making
Michael Bolton's cinematic serenade to Detroit
Play Videos
Circus nuns: These sisters are no act
5 ways to raise girls to be leaders
Cool off with sno-balls, a New Orleans treat