Consumer Watchdog Fines Capital One For Deceptive Credit Card Practices

[myrna minx]

http://dealbook.nytimes.com/2012/07/18/consumer-watchdog-fines-capital-one-for-deceptive-credit-card-practices/

The nation’s consumer watchdog on Wednesday delivered its first enforcement action against the financial industry, fining Capital One for pressuring and misleading more than 2 million credit card customers.

snip
“We are putting companies on notice that these deceptive practices are against the law and will not be tolerated,” said Richard Cordray, the director of the consumer bureau. Before Mr. Cordray became director of the bureau, he ran its enforcement division.

The case comes on the heels of several Wall Street blowups and regulatory investigations that have stoked anger from consumers and investors. Last month, Barclays agreed to pay authorities $450 million to settle accusations that it manipulated a key interest rate, the first case to stem from a wide-ranging investigation into wrongdoing across the financial sector. JPMorgan Chase is dealing with the fallout from a multi-billion dollar trading blowup.

more at link

[darkangel218]

1. Im surprised, I thought higher of Capital One

They proved to be a reliable fair company to work with, at least in my case.

[myrna minx]

2. I'm grateful that this agency is now up and running.

[canoeist52]

3. Here's what they're being fined for.

"In a 30-page order, the consumer bureau outlined how the bank’s call centers marketed and sold the products to ineligible unemployed consumers, who despite paying for the services, never received the full benefits. At some call centers, a vendor working for the bank imposed the products without the consumer’s consent. In other cases, according to the bureau, the bank employed “high pressure tactics,” including misleading customers into thinking the product was free, mandatory and would bolster credit scores."

Otherwise known as predatory lending.

[Gold Metal Flake]

4. I think this is a good thing.

Hooray for our side!