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Capital One Deceptive Marketing Practices


Washington, DC: Capital One customers who called to activate a new credit card, may have been routed to representatives who try to sell additional products such as "credit protection"or "identity monitoring." These services, or "add-on products,"are additional, optional services that will cost the customer money and are not mandatory. In some cases, the sales tactics may be high-pressure and confusing, and are considered deceptive marketing tactics.

In 2012, the Consumer Financial Protection Bureau (CFPB) announced its first public enforcement action against Capital One Bank (USA), N.A. This action resulted from a CFPB examination that identified deceptive marketing practices used by Capital One' vendors to pressure or mislead consumers into paying for "add-on products"such as payment protection and credit monitoring when they activated their credit cards.

According to information issued by the CFPB, consumers with low credit scores or low credit limits were offered these products by Capital One' call-center vendors when they called to have their new credit cards activated. As part of the high-pressure tactics Capital One representatives used to sell these add-on products, consumers were:

Misled about the benefits of the products: Consumers were sometimes led to believe that the product would improve their credit scores and help them increase the credit limit on their Capital One credit card.

Deceived about the nature of the products: Consumers were not always told that buying the products was optional. In other cases, consumers were wrongly told they were required to purchase the product in order to receive full information about it, but that they could cancel the product if they were not satisfied. Many of these consumers later had difficulty canceling when they called to do so.

Misled about eligibility: Although most of the payment protection benefits kicked in when consumers became disabled or lost a job, some call center representatives marketed and sold the product to ineligible unemployed and disabled consumers. Despite paying the full fees, they could not get all the benefits of payment protection; some later filed claims that were denied because their "loss"(e.g. loss of job or onset of disability) occurred prior to enrollment.

Misinformed about cost of the products: Consumers were sometimes led to believe that they would be enrolling in a free product rather than making a purchase.

Enrolled without their consent: Some call center vendors processed the add-on product purchases without the consumer' consent. Consumers were then automatically billed for the product and often had trouble cancelling the product when they called to do so.



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READER COMMENTS

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I dont know if im able to get money from this lawsuit.

Posted by

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I have received capital one “preapproval” mail EVERYDAY for my husband and I for the last 5 years. Even the same pre approval letter for my deceased mother in law. It’s beyond excessive!

Posted by

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i have a couple capital one cards and every time you call to make a payment they try to sell your something for your card its crazy and harassment sometime i have to hang up without making a payment would love to join this law suit

Posted by

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I had a Capital One secured mastercard to help build my credit, and the interest rates were ridiculous. I would like to get in on this lawsuit.

Posted by

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ABOUT RECENT APPLICATION FOR CAPITAL ONE CARD. WAS APPROVED FOR SECURED CARD BUT AM HEFTY FEES ON THE ONE I ALREADY HAVE.

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