Capital One to pay $210M over tactics


Capital One to pay $210M over tactics

WASHINGTON

The Obama administration’s consumer watchdog agency flexed its enforcement muscles for the first time Wednesday and ordered Capital One Bank to repay millions of credit-card customers reportedly tricked into buying costly add-on services.

Capital One will pay $210 million in refunds and fines. Most of the money will go directly to customers.

The bank’s phone-sales operators told customers that services such as payment protection and credit monitoring were free or mandatory or offered more benefits than they did, federal officials said. The hard- selling targeted people with poor credit, they said.

The order against Capital One is the first enforcement action by the Consumer Financial Protection Bureau, set up a year ago to protect consumers from excessive or hidden fees and other financial threats.

Capital One will pay up to $150 million to 2.5 million customers, $25 million to the CFPB and $35 million to the Office of the Comptroller of the Currency, which oversees its banking operations.

Associated Press

By using this site, you agree to our privacy policy and terms of use.

» Accept
» Learn More