On Wednesday, a first enforcement action was filed against Capital One
for deceiving over two million credit card consumers. As a result, the
company will be forced to pay roughly $210 million to remedy a couple
regulatory cases, which have created obstructions within the financial industry.
According to the Consumer Financial Protection Bureau, Capital One has
deployed deceptive marketing tactics which have led many consumers to
purchase various products such as credit monitoring and payment protection,
both of which are unnecessary. Now, Capital One is responsible for reimbursing
$140 million to deceived consumers. In addition, the Office of the Comptroller
of the Currency endorsed the unfair billing processes that took place
for over a decade. The Director of the Consumer Bureau, Richard Cordray,
stated these various practices are unlawful and will not be accepted.
The president of credit cards from Capital One stated the company is apologetic
for their behavior and that Capital One is devoted to setting the record
straight with their customers.
Sources state that this case is one of the first times the consumer bureau
has enforced such restrictions of deception. Coincidentally, the case
occurred near the same time as the bureau’s second anniversary,
which also marks a point of serious growth for the bureau. The bureau
has become steadfast in protecting consumers by filing enforcement actions
against banks that have deceived customers.
The Is Not New News
According to Attorney Richard Golomb from Golomb & Honik, P.C., many
credit card companies, not just Capital One, take advantage of their consumers
by signing them up for protection agreements without the consent of customers.
He continued, stating the banks continue to pitch their products to consumers.
For similar reasons, Attorney Golomb has filed class action lawsuits against
the following lenders:
- Bank of America
- Discover Financial
- JPMorgan Chase