Consumers Union alongside of activists like you fought for the creation of the CFPB, a financial watchdog whose job is to stop unfair practices and fight for consumers. The CFPB was the consumer centerpiece of the 2008 Dodd-Frank financial reform bill.
In the watchdog’s first enforcement action it ordered Capital One to provide $140 million in refunds to an estimated 2 million customers who were misled into buying “add-on products” like credit monitoring or payment protection when they activated their credit cards. In addition, Capital One must pay a $25 million fine for these abusive marketing practices.
Separately, the Office of the Comptroller of the Currency ordered Capital One to pay a $35 million fine for the marketing abuses as well as unfair billing practices. Customers affected by the unfair billing practices will get approximately $10 million in refunds.
CFPB’s strong action against Capital One is just the latest by financial regulators who have targeted the bank for mistreating consumers. The Attorneys General of Mississippi and West Virginia have both gone after Capital One for unfair practices related to its credit card payment protection plans.
The CFPB put together a 2-page Fact Sheet on the enforcement action against Capital One for the companies deceptive practices. In short, here is what the CFPB’s enforcement action means for Capital One customers:
Capital One customers: If you’re eligible for a refund and you have an open account, the refund will be automatically credited to your account. If you’re eligible but no longer have an account with Capital One, a check will be mailed to you. You should expect to receive your refund later this year. You don’t need to take any action to get your refund.
If you have questions about whether you are entitled to a refund, please contact Capital One.
Watch out for scammers claiming that they will get you a refund . . . ”
If you think you’re being scammed, call the CFPB at (855) 411-CFPB.