Capital One Credit Card Settlement – $210 Million
More than 2 million Capital One customers will benefit from the Capital One Credit Card Settlement. Basically these customers will be getting this reimbursement because the bank sold credit card products to the customers who did not want them or need them. One of the bank’s vendors had deceived the customers into buying products. These products were sold to them for protection against identity theft, unemployment and disability.
Ryan M. Schneider, the president for the credit cards at the bank apologized to all the customers who have been affected. He said they were trying to make everything right by agreeing to the settlement. In the Capital One Credit Card Settlement, the customers of the bank who were affected will get about less than $100 per person. This money will be distributed later this year to all those eligible to receive it. This unfair billing practice of the third party vendors who sold products not wanted or needed to the customers cover a 10 year period from 2002 to June last year.
This settlement comes from the Consumer Financial Protection Bureau. This bureau was established in July 2010 and is backed by President Obama. The bureau basically looks at mortgage disclosure law violations and credit card violations. This decision by the bureau will make consumers file class action lawsuits. Capital One also offered credit monitoring which was included in the identity theft protection program. Apparently the vendors made consumers who were ineligible get the products without their consent or knowledge. Other vendors made it seem as though the products were free when in reality they were not. They also made it seem as if the products were mandatory and necessary for the consumers to get.
I totally understand how one can be tricked into getting these products as I fell into the same trap. I would think that the product was free and click on it only to discover later that I was being charged for something that I did not want to buy anyway. There were also times when I clicked on something just to get out of the loop because I could not proceed to the next step without clicking on it. This is really bad as the customer is being taken advantage of. I am very glad for the Capital One Credit Card Settlement as I think that banks should be held accountable for what they do to their customers.
In January, Capital One was charged with a $13.5 million settlement because of the payment protection programs that also deceived the customers. The customers were enrolled into these programs without their consent or knowledge. So I am glad that the bank had to settle. However, apparently the bank did not learn from its mistake and now has to settle again.
The bank is known for the subprime loans which are risky. Basically subprime loans are loans given to customers whose credit scores are below 660. The practice by the bank to dupe the customers into buying products should not be tolerated and is not being tolerated. If you bank with the company or have their credit cards, you should always check your statements at the end of the month. If you have gone paperless, then I suggest that you go online every month and check your statement there. If there is a charge there that you do not know about, call the bank and find out what those charges are.
I have had this happen many, many times with Comcast. They kept charging me for the guide and each month I had to call and tell them to give my money back and to stop sending me guides that I did not ask for. They never stopped as each month I would get those guides. It was really painful to call each time to tell them to stop sending and to reimburse my money.You have to be on your toes all the time these days. Apparently these days you get mugged by the bank. What an irony. You do not go rob a bank. Instead the bank robs you. Ha. Ha. I never thought a bank would do that to you but how wrong I was. And when you call to ask them about it, they get very defensive too and say you bought the products. I usually get very frustrated with them so I am very glad that there is a settlement in this case.
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