Capital One will have to refund hundreds of millions to customers for having cheated them on the sale of identity theft coverage and credit protection policies.
The company reached a settlement with the feds to provide $150 million to 2.4 million consumers and pay $60 million in fines. Customers will begin receiving their refunds later this year. There is no need to apply for the restitution; if you had one of the above policies, it is already due to you.
It turns out the policies were often sold to customers through third party marketing groups that used allegedly deceptive marketing strategies, and Capital One failed to properly oversee the sales of the products.
But the refreshing thing in this story is that Capital One actually apologized for their misdeeds. “We are accountable for the actions that vendors take on our behalf,” said Ryan Schneider, president of Capital One’s credit card business.
I commend them. How often do corporations say, “We’re sorry, we messed up, we’ll do better”?
The folks at Capital One are not the only ones under investigation and they probably won’t be the only ones to face fines. The banking industry lost its moral compass and looked the other way when it’s marketing partners were selling this garbage because it was very lucrative for them.
So your duty, as I’ve said before, is to be like a hawk with your credit card statement. Take your bill each month and go through it line item by line item. Make sure you’re not being charged for something you didn’t agree to or don’t understand.