Capital One to Refund $150M to Customers
(WASHINGTON) -- The Consumer Financial Protection Bureau set up by the Dodd-Frank financial reform law announced its first “enforcement action” on Wednesday.
Capital One Bank is paying $210 million to settle a case charging that it deceived credit card customers into buying services like payment protection and credit monitoring.
The CFPB says that Capital One call-center workers told customers the products were free, misled them about the benefits and let people to think the services were required to hold a card.
Capital One will refund about $150 million to more than two million customers.
Affected consumers either initially enrolled in a product on or after August 1, 2010, or tried to cancel a product on or after Aug. 1, 2010, but were persuaded to keep the product after speaking with a call-center representative.
If the consumers 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 take any action to receive their credit or check.
Copyright 2012 ABC News Radio