Capital One to Pay $210 Million in First CFPB Enforcement
Capital One Financial Corp. (COF) will pay a total of $210 million to settle charges of deceptive marketing of credit card “add-on” products such as payment protection and credit monitoring.
It was the first public enforcement case brought by the Consumer Financial Protection Bureau, established by the Dodd- Frank Act to increase oversight of consumer financial products. The bureau and the Office of the Comptroller of the Currency, the bank’s primary regulator, said Capitol One agreed to provide between $140 million and $150 million in restitution to 2 million customers and pay an additional $60 million in penalties — $25 million to the CFPB and $35 million to the OCC.
More comment and a response from Elizabeth Warren here:
This puts all the credit card companies on notice. Gouging customers with deceptive practices will no longer be tolerated. We’ve got Elizabeth Warren to thank for that. It was her doggedness that kept the idea of the CFPB alive during heated and difficult Dodd-Frank negotiations. And it was Elizabeth Warren who got the Bureau off the ground while Republicans were obstructing the appointment of a permanent director.
Warren’s reaction (via email):
“I’m proud that the Consumer Financial Protection Bureau has stood up for middle class families by holding a major credit card company, Capitol One, accountable for deceptive practices,” said Warren. “The new consumer agency is only one-year old, but it is fearless. It will hold accountable the largest financial institutions and try to make sure that even the biggest banks follow the rules.”
“The CFPB has been pushing to reduce the fine print in credit card agreements and assisting with consumer complaints, and today’s action shows how important it is that consumers have someone on their side. It’s critical that we keep moving forward and protect the gains we’ve made, to protect people from financial tricks and traps and help create a level playing field.”
Said it before and I’ll say it again. I love Elizabeth Warren soooo much.