• Call 12 for Action
Keep your smartphone secure
Keep your smartphone secure

Many people rely on their cell phones to store their most …

Parents using GPS devices to keep their kids safe
Parents using GPS to track their kids

Some parents are using GPS devices to make sure their families …

SUV safety put to the test
SUV safety put to the test

The small SUV is becoming the modern version of the classic …

Honda CR-V door locks pose danger
Honda CR-V door locks pose danger

A potentially dangerous door lock issue in Honda CR-Vs is …

Group aims to increase stroller safety
Group aims to increase stroller safety

Do you have an experience with a faulty stroller? If so, now is…

Advertisement

Capital One gets hit with massive fine

Company on the hook for $210 million

Updated: Friday, 20 Jul 2012, 8:28 AM EDT
Published : Thursday, 19 Jul 2012, 7:18 PM EDT

(WPRI) -- Capital One is being hit by the government’s Consumer Financial Protection Bureau with a $210 million dollar fine.

“This is just so refreshing to see that our new consumer financial protection agency is clamping down on a lot of these credit card abusers, something we have not seen in a long time, Chris Lefebvre, a consumer law attorney said.

Millions of credit card customers were allegedly tricked by Capital One agents and asked to purchase unnecessary add-on services, in order to use their credit cards. Some customers were even told that Capital One’s credit card protection services were free, which is far from the truth.

In a statement, Capital One said that they were aware of its’ agents’ practices last year.

"These marketing calls were inconsistent with the explicit instructions we provided to agents for how these products should be sold."

Capital One's deceptive practices has certainly surprised many, however some say it's not unique within the industry.

“One of the very profitable aspects of the credit card industry are all of these hidden add-ons and so called freebies which unfortunately cost consumers millions of dollars,” said Lefebvre.

Copyright WPRI 12


Ground rules for posting comments: No profanity or personal attacks. Please comment on the subject of the story itself. If you do not follow these rules, we will remove your post. Keep it civil, folks!

Our commenting section is powered by IntenseDebate. If you registered for an account but didn't receive a verification e-mail, check your spam folder or click here for more information. For additional technical help, click here.

 

  • Susan Hogan - Problem Solver

Contact Call 12 for Action

Expose scams, dangerous products and bad business practices. Contact Call 12 for Action Today!

Advertisement
Advertisement
  • Site Tools