Quantcast

Capital One: Credit Card Company Must Refund $150 Million

Get the WebProNews Newsletter:
Capital One: Credit Card Company Must Refund $150 Million
[ Business]

Capital One must repay its credit card customers $150 million after federal regulators determined the company was using deceptive business practices to trick its clients into signing up for services they didn’t want or need. Although Capital One neither admitted nor denied liability in the settlement — they claim third party vendors were to blame for the problems — they won’t be able to escape paying an additional $60 million in penalties to the government.

“We are accountable for the actions that vendors take on our behalf,” explained Ryan Schneider, president of Capital One’s credit card business. “These marketing calls were inconsistent with the explicit instructions we provided to agents for how these products should be sold. We apologize to those customers who were impacted and we are committed to making it right.” And by committed, of course, they mean forced to by the Consumer Financial Protection Bureau.

According to Richard Cordray, director of the aforementioned bureau, Capital One used deceptive practices to get its customers to sign up for such services as payment protection plans and credit monitoring. Employees at various call centers would often lie to card holders about the price of such options, sometimes proclaiming that signing up was free. Others told clients these services weren’t optional, leading some to say they felt pressured into getting the products.

Although Capital One is guilty of using such tactics, Cordray stated that such practices were not unique to one single institution. “We are putting companies on notice that these deceptive practices are against the law and will not be tolerated,” he stated.

Did you or someone you know fall victim to these extremely shady business transactions? Here’s what you need to know about the refund: If you’re still a customer with Capital One, then a refund should show up on your account. Those of you who have closed your accounts, however, should receive a check in the mail. These refunds will be issued by the end of the year.

Capital One: Credit Card Company Must Refund $150 Million
Top Rated White Papers and Resources
  • Anon

    I love this, the part where they have to pay back the cusomers. Not the part where they trick people.

  • http://sweergrandad49@facebook.com diego a paor view because you are not savy enoufgt to use them and you cannot find the #of the service until three month payment have been deducted from your account will id get all of this back[ idont thinks sit to me like always.o they will mannage to p

    great story about paying back for false advertising what
    about the interest because your account went overdrauwn due to theyir action on nthe cost added to your account for alledge security protection or credit monitoring servecis which you cannot acces

  • http://yahoo anita lauer

    I agree with Anon … it is about time they were penalized.
    Also, it would be prudent that Capitol One’s usary tactics be reviewed.
    Anita

  • Earl

    I like this new agency!!!! For the first time, we the customers do have the goverment on our side. Before if they were caught, the goverment would just give them a fine and it was over. Now we get our money back. The new health care law that states insurance companies have to refund the monies they did not spend on health care to the customers is great. Now they need to do that to the car insurance companies. Look at all the money they have to pay Flo and have a green lizard walking around on every channel.

  • Tabatha Quakenbush

    I would like to know how you cancel a card that has not been activated or used??? I have made numerous attempts to cancel it and the bill keeps getting higher!!! Capital one refuses to cancel my card!!! They are seriously screwing up my credit!!!! What can I do?? I mean I tried to cancel it as soon as I received it in the mail and for the last 4 months!!!

  • Carl Hicks

    Way to go, LEMMINGS! The only losers in this one are the good customers of Capital One, of which I am a cardholder. They pay me 1 1/2 % on ALL purchases, and I can’t beat that rate now. Capital One will not pay any penalities or fees, they are passed on to the customers. All of this because some pieces of government backed “white traaash” are too stupid to read and understand a simple agreement!