CFPB Announces First Enforcement Action
On July 18, 2012, the Consumer Financial Protection Bureau (“CFPB”) announced its first public enforcement action. Citing deceptive tactics in the marketing of certain credit card “add-on” products, the CFPB fined Capital One Bank (U.S.A.), N.A. $25 million and ordered it to refund an additional $140 million, plus interest, to two million customers. Simultaneously with the announcement of the Capital One action, the CFPB issued a compliance bulletin advising institutions within its supervision of the CFPB’s expectations regarding the marketing of these and other similar consumer financial products.