Capital One to refund millions

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 targeting other card issuers are expected, the agencies said.

Regulators said consumers with low credit scores were often targeted with the pitches. When they called to activate new cards, the customers were transferred to call centers where live operators would spend eight minutes trying to get them to sign up for the protections. For most customers the activation process lasted only 2 minutes.

Some were signed up for the extra fees without their permission and had trouble canceling the services when bills arrived, regulators said.

“We are putting companies on notice that these deceptive practices are against the law and will not be tolerated,” CFPB director Richard Cordray said.

22 comments Add your comment

ugadawg2005

July 18th, 2012
6:10 pm

I think it’s Capital One, not Capitol One.

Christopher Seward

July 18th, 2012
6:24 pm

You are correct!

Capital One Customer

July 18th, 2012
6:26 pm

I’m a Capital One CC customer and I’ve never had one ounce of trouble from them. Never received a single solicitation call from them in all the years I’ve been with them.

MeaneyMouse

July 18th, 2012
6:44 pm

CapitalorCapitol they still have2pay!!

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Chris

July 18th, 2012
7:01 pm

I’ve been hastled more by AT&T about buying services and stuff than I ever have by Capital One.

Accountant

July 18th, 2012
7:10 pm

pretty sure it was $60 MILLION not just $60

Dale

July 18th, 2012
7:11 pm

I have been a customer for many years and I have maintained a credit score above 800 for years. They bothered the dickens out of me. I told them upfront that I was not interested and their pitch was incredibly difficult to stop. When I called to renew my card they started again, and I asked for a supervisor and I told her that if they did not renew my card and stop hasseling me, I would certainly cancel and write a letter explaining why. It finally stopped. Pushy jerks.

College Student from Gwinnett

July 18th, 2012
7:41 pm

In July 2008, I signed up for my first CC with Capital One when I was 18 years old. When I signed up for the offer online, I had an option to sign up for CreditInform which monitors my credit report for only $5.99 a month. I went ahead and opted for the offer and to this day, I have never had any solicitation calls from neither Capital One nor CreditInform.

D.T.

#PrayForFAMU

Ken

July 18th, 2012
7:46 pm

Sure seems to be a lot of Capital One employees chiming in here…”I’ve never had any issues with Capital One….”

Yeah, right….

me

July 18th, 2012
8:31 pm

I am a CC customer & I did receive the sales pitch calls. Not only that I was given the run a round when I was laid off my job & wanted to activate the protection plan. I had problems canceling the plan too. I am now employed (was only out of work 1 month) & paying them off so I can cancel the account with them.

Chhappy

July 18th, 2012
8:44 pm

Wean yourself off this expensive dependence.

WestOfAthens

July 18th, 2012
8:45 pm

Received the same sales pitch, never needed the assistance, but appeared overbearing.
Where’s my refund?

WestOfAthens

July 18th, 2012
8:52 pm

Word of advice after this rash of hate towards Cap 1……….

NEVER cancel a credit account, no matter the provider, that is a negative hit to your credit score.

Your welcome, advice usually involves a fee these days:)

ur banker

July 18th, 2012
9:05 pm

Enter your comments here

Everbody Loves Credit

July 18th, 2012
9:12 pm

“What’s in YOUR wallet?”

Apparently Capital One’s slimy fingers….

Fred ™

July 18th, 2012
9:21 pm

ollege Student from Gwinnett

July 18th, 2012
7:41 pm

In July 2008, I signed up for my first CC with Capital One when I was 18 years old. When I signed up for the offer online, I had an option to sign up for CreditInform which monitors my credit report for only $5.99 a month. I went ahead and opted for the offer and to this day, I have never had any solicitation calls from neither Capital One nor CreditInform.

D.T.

#PrayForFAMU
+++++++++++++++++

I’m surprised you haven’t. They knew you were an idiot for paying $71.88 a year for 4 years (a total of $287.52 for something Georgia law states that you can get FOR FREE. I’m surprised they didn’t dip back into the well of stupid to see how far they had to go to plumb the bottom. They could have been takeing you for a lot more had they even given half an effort. But then again your credit rate is probably around 30 percent so they are sticking it to you already…….

Hadron Koligher

July 18th, 2012
9:32 pm

When is dinner? We having cube steaks again?

Hosenphefer

July 18th, 2012
10:15 pm

I want all of my chips, with DIP!!

Hosenphefer

July 18th, 2012
10:17 pm

Ha Ha! What’s in your wallet?

Hosenphefer

July 18th, 2012
10:20 pm

I bet Mr.Baldwin won’t be endorsing anymore cap 1 commercials

Von

July 19th, 2012
12:25 am

Cap1 was my first credit card, and I still have it to this day along with one additional card. Ive never had a problem with cap1 spam calling me or trying to get me to sign up for anything…now Ive never been an identity theft victim on THAT card (I have on the other one) so I cant say how their customer service is with regards to stuff like that, but in general I have no complaints…well except for the interest rate but hey.