Consumer Financial Protection Bureau Swings their Weight for the First Time

The consumer financial protection bureau has fined Capital One to the tune of $210 million dollars after the new regulatory agency found the financial company guilty of forceful and deceptive marketing practices. The company known for flashy tv commercials featuring the tagline “what’s in your wallet” is an aggressive marketer when it comes to picking up younger and less experienced financial customers. As part of the deal Capital One must reimburse about $140 million to its customers. 

The company in a prepared statement said that the problems arose out of call centers that did not always adhere to proper script guidelines thus leading to the miscommunication and eventual ills associated with credit card abuse in the years leading up to the financial bust of 2008. The CFPB has long been accused by conservatives as being big brother to Wall Street whereas liberals have mainly seen the CFPB as becoming effectively neutered before any power was bestowed on it.

Source: Dealbook

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