Consumer Agency Orders Credit Card Company To Refund $140 Million To Customers Due To Deceptive Practices
"Consumer Agency Orders Credit Card Company To Refund $140 Million To Customers Due To Deceptive Practices"
The first public enforcement action handed down by the newly-created Consumer Financial Protection Bureau will result in $140 million in consumer refunds from credit card company Capital One, the agency announced in a release Tuesday. Capital One will pay $140 million in refunds to two million customers and an additional $25 million fine to the CFPB, the release said. During its investigation, the agency found that Capital One used deceptive marketing tactics, misleading customers about costs and benefits of products and also about eligibility for those products. “We are putting companies on notice that these deceptive practices are against the law and will not be tolerated,” CFPB Director Richard Cordray said in the release.