Now you see why Republicans tried to stop the Consumer Financial Protection Bureau
The day that Obama and Warren and Cordray did an end run around the Party of NO
Capital One Financial agreed to pay $210 million to resolve charges by U.S. banking regulators that its call-center representatives misled consumers into paying for extra credit card products…The enforcement action…is the first by the Consumer Financial Protection Bureau, which said it unearthed the activities through an examination of the bank.
The CFPB was created by the 2010 Dodd-Frank financial reform law and is nearing its one-year anniversary.
The government said $150 million of the sanctions will go to reimburse affected customers, while the remaining penalty will be split between the Office of the Comptroller of the Currency, which fined the bank $35 million, and the CFPB, which will collect $25 million…
In a briefing with reporters, Cordray said he anticipated actions against other banks over similar tactics but declined to name any targets…”We know these deceptive tactics are not unique to a single institution … we expect announcements about other institutions as our ongoing work continues to unfold,” Cordray said…
The CFPB said employees at call centers used by Capital One misled customers by saying these add-on products would improve their credit scores or falsely telling them that the products were free.
While the CFPB has existed on paper for a year – and Elizabeth Warren stayed on in Washington to complete necessary structures – startup only really happened when President Obama did an end-run around Republican stalling tactics by appointing Richard Cordray via recess appointment in early January.
Now, the CFPB is off to a fine start – doing exactly what it was chartered to do. No doubt Republican whiners will be out in full voice singing the blues for their corporate chain-bank bubbas.