Capital One, the fifth largest bank in the country, said Wednesday it reached an agreement with regulators to pay $210 million to resolve charges that it misled and pressured customers into purchasing unnecessary products.
The McLean bank has agreed to refund $150 million to 2.5 million consumers enrolled in debt cancellation as well as credit and identity monitoring products on or after Aug. 1, 2010.
As a part of the agreement, Capital One will pay a $35 million fine to its banking regulator, the Office of the Comptroller of the Currency. It will also hand over $25 million to the Consumer Financial Protection Bureau to settle an enforcement order tied to the alleged actions.
“We are accountable for the actions that vendors take on our behalf,” said Ryan Schneider, president of Capital One’s card business, in a statement. “These marketing calls were inconsistent with the explicit instructions we provided to agents for how these products should be sold. We apologize to those customers who were impacted and we are committed to making it right.”
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