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Wednesday, July 18, 2012

Capital One to pay $210 million in fines, consumer refunds

http://money.cnn.com/2012/07/18/pf/capital-one-refund/index.htm

NEW YORK (CNNMoney) -- In its first public enforcement action, the Consumer Financial Protection Bureau announced it is fining Capital One Bank for pressuring and misleading two million customers into buying additional products when they opened their credit card accounts.
The bank will refund roughly $140 million to customers and pay an additional $25 million penalty to the CFPB for using deceptive marketing tactics, the government's consumer watchdog said Wednesday.
Capital One (COF, Fortune 500) will also pay the Office of the Comptroller of the Currency a $35 million penalty and refund an additional $10 million to customers for unfair billing practices. The two actions combined bring the bank's total payout to $210 million.
The CFPB said that Capital One, one of the nation's largest credit card lenders, pressured and misled consumers into paying for "add-on products" like payment protection and credit monitoring when they activated their credit cards.

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