from The Daily Bell
Consumer agency fines Capital One for card marketing … The enforcement action, announced on Wednesday, 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. “We are putting companies on notice that these deceptive practices are against the law and will not be tolerated,” said CFPB Director Richard Cordray. – Reuters
Dominant Social Theme: Now the government has begun to protect US consumers against financial-consumer fraud. This is a big step forward.
Free-Market Analysis: The mission statement of the newly formed Consumer Financial Protection Bureau (CFPB) is “To help consumer financial markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives.”
Now the first enforcement action has been taken against Capital One. Here’s how CFPB top guns announced it: