2 Million Capital One Customers To Get Refund

In a recent press release, the Consumer Financial Protection Bureau (CFPB) announced its first public enforcement action.  An investigation of Capital One Bank’s marketing practices identified deceptive tactics used by Capital One’s call-center vendors to trick consumers into buying costly add-on products such as payment protection and credit monitoring when they activated their credit cards.  The CFPB held Capital One responsible for the behavior of the third-party vendors.  Some of the tactics used by the vendors were:

leading consumers to believe that the product would improve their credit score,

not telling consumers that buying the product was optional,

telling consumers that they were required to purchase the product in order to receive full information about it but that they could cancel if they were not satisfied, and then making it difficult to cancel,

leading consumers to believe they were enrolling in a free product, and

enrolling consumers without their consent.

Under the terms of the settlement, Capital One agreed to:

refund $140 million to two million customers and to pay an additional $25 million penalty,

end deceptive marketing and submit a compliance plan to CFPB

pay any payment protection claims that were previously denied

Capital One card division president Ryan Schneider apologized to customers and acknowledged responsibility for the actions their third-party vendors undertook on Capital One’s behalf.

Customers who either initially enrolled in a product on or after August 1, 2010, or who tried to cancel a product on or after August 1, 2010 but were persuaded to keep the product after speaking to a call center representative will receive a refund of the amount paid for the product plus the associated finance charges, any over-the-limit fees, and interest.  If customers are still Capital One customers, they will receive a credit to their accounts.  If they are no longer a Capital One credit card holder, they will receive a check in the mail.  Consumers are not required to fill out any paperwork to receive their credit or check.

For more information you can trust, see

10 Websites for Consumers – National Consumer Protection Week

Consumer Financial Protection Bureau Launches Website

What Does the Consumer Protection Act Mean For You?

Consumer Financial Protection Bureau Answers Tough Financial Questions

CFPB Probe Into Capital One Credit Card Marketing Results in $140 Million Consumer Refund

How will the Capital One order handle refunds?

Prepared Remarks by Richard Cordray on CFPB Enforcement Action

About Jackie 246 Articles
Jackie is the Operations and Education Foundation Assistant with the BBB. She assists consumers with business inquiries, and does presentations to senior groups and high school students. She is a regular contributor to the blog.

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