• Consumer Financial Protection Bureau Finds Marketing of Credit Card Add-On Products to be Deceptive
  • July 27, 2012 | Authors: Keith J. Barnett; Jaliya Stewart Faulkner
  • Law Firm: Sutherland Asbill & Brennan LLP - Atlanta Office
  • On July 16, 2012, the Consumer Financial Protection Bureau (CFPB) announced its first public enforcement action. The CFPB found that Capital One Bank (USA), N.A. violated sections 1031 and 1036 of the Consumer Financial Protection Act by engaging in deceptive marketing practices in connection with certain add-on products that Capital One offered to credit card holders. The CFPB and Capital One entered into a Stipulation and Consent Order requiring Capital One to: (1) pay $210 million in restitution, remediation and penalties; and (2) strengthen its internal and external controls to ensure compliance with the Consumer Financial Protection Act. The Capital One enforcement action provides a roadmap for what the consumer credit industry can expect from the CFPB with respect to compliance and what the CFPB expects from a company‚Äôs board in connection with the marketing of services for which the customers must pay an additional fee.