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Thread: Consumer agency fines Capital One for card marketing

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    Consumer agency fines Capital One for card marketing

    Ive posted several threads in a short period of time about Big Banks and Corporations and Big Pharma criminality. Their ripping off the american people for millions and billions and in turn recieving MINOR slap on the wrist fines...then issuing WE DID NOTHING WRONG but were paying the finet....Your crooks and thieves just like AL Capone and Vito Genovese and Mexican Drug Cartels...
    This bank like all the others just laugh at this...they swindled and pocketed alot more than the fine...

    Capital One Financial agreed to pay $210 million to resolve charges by banking regulators that its call-center representatives misled consumers into paying for extra credit card products
    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.


    Consumer agency fines Capital One for card marketing | Reuters

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    Re: Consumer agency fines Capital One for card marketing

    I used to work for Citi in the credit card division.

    We had 10 or 15 products available to customers similar to those Capital One is being fined for.

    These programs, while expensive, can be beneficial to a certain demographic of card holder.

    The payment protection plan, which is usually a varying fee based on your balance (i.e. $0.43 per dollar of balance) is a program that will cover your minimum payment for a designated period of time under certain circumstances. Those circumstances would include lay-offs, serious illness that results in short-term/long term disability, and a few other situations. The down side, other than the fee, is that you cannot use the card when you're in protection mode. Then again, if you don't have normal income you probably shouldn't be using a credit card anyway.

    Credit monitoring is a service offered by almost every single bank in existence and several 3rd party companies. It can be invaluable. I know when I had it on my Citi card I got alerted quite a few times when "weird" stuff happened...out of state inquiries, a card swipe outside my normal activity area, etc. The program also offered $10k to cover costs associated with credit theft.

    I'm assuming the issue that led to Capital One being charged involves their methodology. And I'll agree that the men at the board room desk/marketing department/supervisors are very, very serious about pushing these credit products onto consumers. And why not? They're a HUGE profit boon for companies. I know how Citi did it: We had to offer, offer again, and if the customer accepted we had to read them 2 pages of legal information (they'd later receive that in the mail, too) before signing them up.

    Looks like C1 reps were lying about the system. My guess, having been that poor jerk sitting at the phone bank, is that the pressure to meet sales quotas, especially in this economy, resulted in a lapse in proper procedure. I actually feel bad for the reps in this situation. I remember very well how hard we were pushed to sell, sell, sell...but we were never encouraged to lie about the programs. In fact, we were warned that if we were caught lying in a call audit we'd be immediately terminated.
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    Re: Consumer agency fines Capital One for card marketing

    and it's not just capital one. my credit card is somehow charging me the credit protection nonsense again after i had it removed. looks like i'll have to waste time calling them (again) to have it removed (again.) every time i use the damned card, i think about how much i don't want to ever use a credit card. needless to say, i don't use it often, and i do not carry a balance from month to month.

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    Re: Consumer agency fines Capital One for card marketing

    Quote Originally Posted by tessaesque View Post
    I used to work for Citi in the credit card division.

    We had 10 or 15 products available to customers similar to those Capital One is being fined for.

    These programs, while expensive, can be beneficial to a certain demographic of card holder.

    The payment protection plan, which is usually a varying fee based on your balance (i.e. $0.43 per dollar of balance) is a program that will cover your minimum payment for a designated period of time under certain circumstances. Those circumstances would include lay-offs, serious illness that results in short-term/long term disability, and a few other situations. The down side, other than the fee, is that you cannot use the card when you're in protection mode. Then again, if you don't have normal income you probably shouldn't be using a credit card anyway.

    Credit monitoring is a service offered by almost every single bank in existence and several 3rd party companies. It can be invaluable. I know when I had it on my Citi card I got alerted quite a few times when "weird" stuff happened...out of state inquiries, a card swipe outside my normal activity area, etc. The program also offered $10k to cover costs associated with credit theft.

    I'm assuming the issue that led to Capital One being charged involves their methodology. And I'll agree that the men at the board room desk/marketing department/supervisors are very, very serious about pushing these credit products onto consumers. And why not? They're a HUGE profit boon for companies. I know how Citi did it: We had to offer, offer again, and if the customer accepted we had to read them 2 pages of legal information (they'd later receive that in the mail, too) before signing them up.

    Looks like C1 reps were lying about the system. My guess, having been that poor jerk sitting at the phone bank, is that the pressure to meet sales quotas, especially in this economy, resulted in a lapse in proper procedure. I actually feel bad for the reps in this situation. I remember very well how hard we were pushed to sell, sell, sell...but we were never encouraged to lie about the programs. In fact, we were warned that if we were caught lying in a call audit we'd be immediately terminated.

    All banks offer their services to customers...I like that they tell me whats available it helps me to make decisions on programs that could benefit me.
    I have absolutely NO problem with companies hawking their goods...its when they cross the line and do something criminal to get your business that Im against...and Capitol 1 obviously did that...you dont agree to pay a 215 million dollar fine being innocent.

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    Re: Consumer agency fines Capital One for card marketing

    Quote Originally Posted by lpast View Post
    All banks offer their services to customers...I like that they tell me whats available it helps me to make decisions on programs that could benefit me.
    I have absolutely NO problem with companies hawking their goods...its when they cross the line and do something criminal to get your business that Im against...and Capitol 1 obviously did that...you dont agree to pay a 215 million dollar fine being innocent.
    Oh, I agree with you. I just know how much it sucks to be that phone rep. They're the ones that did something illegal, but from my experience I'm willing to bet that part of the motivation was the extreme pressure from the top to make those sales.

    I forgot to mention, though: There are several programs that are just a waste...Pet insurance that didn't really cover anything, an AAA program that didn't cover even half of what AAA covered, etc.

    Most people didn't qualify for those programs, though. You had to have a near perfect credit score and a HUGE credit limit to qualify for all of the extras. The most common programs that popped up where the payment protection and credit monitoring programs.
    "Hmmm...Can't decide if I want to watch "Four Houses" or give myself an Icy Hot pee hole enema..." - Blake Shelton


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    Re: Consumer agency fines Capital One for card marketing

    Quote Originally Posted by Helix View Post
    and it's not just capital one. my credit card is somehow charging me the credit protection nonsense again after i had it removed. looks like i'll have to waste time calling them (again) to have it removed (again.) every time i use the damned card, i think about how much i don't want to ever use a credit card. needless to say, i don't use it often, and i do not carry a balance from month to month.

    I dropped my capitol one card a year or so ago because they kept putting a fee for Payment protection if I lost my job and couldnt pay and I HAD NO BALANCE...they just stuck it on there...I called and said I never asked for th is...Capitol one said we gave you a free trial for a month and you didnt cancel...I said how can I cancel something I never knew I had....but I can cancel your card and thats exactly what im doing right now...Cancel this credit card and credit line now please.

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    Re: Consumer agency fines Capital One for card marketing

    Quote Originally Posted by lpast View Post
    I dropped my capitol one card a year or so ago because they kept putting a fee for Payment protection if I lost my job and couldnt pay and I HAD NO BALANCE...they just stuck it on there...I called and said I never asked for th is...Capitol one said we gave you a free trial for a month and you didnt cancel...I said how can I cancel something I never knew I had....but I can cancel your card and thats exactly what im doing right now...Cancel this credit card and credit line now please.
    I still have my C1 card. I have to pay a $35/year fee, but my interest rate is half the rate on my other active card, so it seems fair enough to me. My other active card is from Chase.

    I closed my Citi card almost 3 years ago. I had about $2500 on it from helping my dad w/finances and taking care of some medical stuff, and I noticed that my minimum due had almost tripled from the previous month, even though the balance had decreased. Looking further into the statement I realized they'd doubled my interest rate, taking it from 12.99% to 23.99%, which is basically the default rate. I called them and asked them what the hell they were doing and got a bunch of stupid excuses. I'd just recently received my credit report, so I knew my score was good. My I-to-D ratio was good, hadn't missed any payments, paid late, or under paid (usually paid 2-3x the minimum or more).

    Basically, it came down to a "business decision related to the current economic climate" that motivated them to raise my rate so high. I was told it wouldn't be lowered unless I closed the account. I think they assumed I'd just eat the new rate since the card had a limit over 10k, and had been open since I was 18. I told them to close it. The "supervisor" argued with me for 10 minutes before finally sending me to retention. They then tried to sway me by offering to take my rate down to 19.99%. I told them to **** off and close the card.
    "Hmmm...Can't decide if I want to watch "Four Houses" or give myself an Icy Hot pee hole enema..." - Blake Shelton


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    Re: Consumer agency fines Capital One for card marketing

    that default rate really pisses me off. I've been penalized with that rate once, which was my fault. I basically stopped using the card and got a small loan to pay off the balance. I called a couple months ago after years of on time payments and asked them to lower it, which they did. had they fought me on it, I would have cancelled and gone with a competitor.

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    Re: Consumer agency fines Capital One for card marketing

    Quote Originally Posted by lpast View Post
    Ive posted several threads in a short period of time about Big Banks and Corporations and Big Pharma criminality. Their ripping off the american people for millions and billions and in turn recieving MINOR slap on the wrist fines...then issuing WE DID NOTHING WRONG but were paying the finet....Your crooks and thieves just like AL Capone and Vito Genovese and Mexican Drug Cartels...
    This bank like all the others just laugh at this...they swindled and pocketed alot more than the fine...

    Capital One Financial agreed to pay $210 million to resolve charges by banking regulators that its call-center representatives misled consumers into paying for extra credit card products
    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.


    Consumer agency fines Capital One for card marketing | Reuters
    I wonder how much will go to trial lawyers,among the biggest donors to the Obama campaign.

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    Re: Consumer agency fines Capital One for card marketing

    Quote Originally Posted by lpast View Post
    Ive posted several threads in a short period of time about Big Banks and Corporations and Big Pharma criminality. Their ripping off the american people for millions and billions and in turn recieving MINOR slap on the wrist fines...then issuing WE DID NOTHING WRONG but were paying the finet....Your crooks and thieves just like AL Capone and Vito Genovese and Mexican Drug Cartels...
    This bank like all the others just laugh at this...they swindled and pocketed alot more than the fine...

    Capital One Financial agreed to pay $210 million to resolve charges by banking regulators that its call-center representatives misled consumers into paying for extra credit card products
    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.


    Consumer agency fines Capital One for card marketing | Reuters
    Fascinating. I used to actually DO this for CapitalOne, through a telemarketing company. I can tell you, from firsthand experience, that this is certainly what I saw going on during my 9 months working as a CapitalOne representative. We were told to distort and twist the truth to make it sound like a benefit to a customer. We were told to target older people and non-English speakers as especially "receptive" to what we were pushing. In reality, we were offering unnecessary and risky options that would inevitably lead customers to spend more and ultimately pay us more.

    I'm glad to see they got some form of punishment. It was a particularly dirty trick they were playing.

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