The Consumer Finance Protection Bureau’s first blood: Capital One takes a hit
- $150M the amount Capital One has agreed to reimburse customers in a settlement with the U.S. Consumer Finance Protection Bureau
- 2M the number of people who may be affected by the deceptive marketing of unnecessary add-on programs, such as credit monitoring services
- $75 the average amount each person affected would get, before legal fees; the settlement is the CFPB’s first act of enforcement source
» What this means for consumers: This settlement isn’t simply something that affects Capital One’s customers — rather, it helps set some guidelines for the entire industry, by forcing stronger warnings on add-on services sold by credit card companies; by setting a standard for clear payouts of refunds to consumers; and by discouraging other companies from selling the programs, which many consumer advocates dismiss as “junk products.” Simply put, the Capital One settlement sets a future standard for the financial industry as they work with the CFPB.