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Consumer Protection Agency to fine Capital One for misleading sales tactics

 |  July 19, 2012

The Consumer Financial Protection Bureau (“CFPB”) has fined credit card Company Capital One for allegedly overstating the benefits of add-on features to their credit cards. The agency has consumers believe through persuasive sales tactics, that these products would improve their credit scores and increase their credit limits. In a press statement, Ryan Schneider, the President of Capital One’s Card business apologizes to customers who were impacted by these misleading sales.

The action to fine Capital One now compensates the two million affected customers who were mislead or persuaded into purchasing such products.

This action is the CFPB’s first ever enforcement action since it has been created, and sends a message to both financial companies and politicians who previously challenged the legitimacy and power of the agency.

Full Content: Forbes


Related Content: Unfair Commercial Practices and Misleading and Comparative Advertising: An Analysis of the Harmonization of EU Legislation in View of the Italian Implementation of the Rules


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