Capital One Bank must pay $ 210 million in customer refunds and penalties for pressuring and misleading credit card customers into buying payment protection plans and credit monitoring services.
The sum includes $ 150 million in refunds and $ 60 in penalties, according to the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency. The refunds to 2.5 million customers, who had to endure call center sales pitches while waiting to activate new cards, should be issued later this year, the federal agencies said.
“These marketing calls were inconsistent with the explicit instructions we provided to agents for how these products should be sold,” Ryan Schneider, president of Capital One’s card business, said in a statement. He said the credit card company fully cooperated with regulators.
Capital One, however, isn’t the only credit card company using deceptive marketing tactics to lure customers into the protection plans, and announcements
Full News here – The Biz BeatSome local news is curated - Original might have been posted at a different date/ time! Click the source link for details.