Capital One, one of the nation’s biggest banks, will reimburse $150 million to more than two million customers for selling them credit card products they could not use or did not want, as the nation’s new consumer watchdog leveled its first enforcement action against the financial industry.
The Consumer Financial Protection Bureau on Wednesday hit Capital One with findings that a vendor working for the bank had pressured and deceived card holders into buying products presented as a way to protect them from identity theft and hardships like unemployment or disability.
The regulatory actions, totaling $210 million including fines to authorities, take aim at one of the financial industry’s growing profit centers and increasingly controversial practices. Several other banks, including Bank of America, JPMorgan Chase and HSBC, were sued in June by the Hawaii attorney general, accused of improperly selling similar so-called add-on products, which consumer advocates typically regard as costly and ineffective.
more
Consumer Watchdog Fines Capital One for Deceptive Credit Card Practices - NYTimes.com