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The Consumer Financial Protection Bureau (CFPB) recently investigated and found that Capital One Bank (USA), N.A. marketed certain credit card tie-ins in a way that violated federal law. As a result, Capital One will be refunding over $140 million to more than two million customers this year.
Are You Eligible?
If you have, or had, a Capital One credit card, and you paid for credit monitoring or payment protection insurance, you may be eligible. You must have:
- initially enrolled in the product on or after 1 August 2010, or
- tried to cancel the product on or after 1 August 2010 but then did not complete the cancellation, either because you were talked out of it or because they just didn't cancel the service as requested.
How Much Refund Will You Get?
Obviously, specific amounts will vary by case. However, you will receive a refund of:
- premiums or charges actually paid
- finance charges applied to the premiums or charges
- over-limit fees resulting from the premiums or charges
How Will I Get My Refund?
If you still have the Capital One credit card, the refund will be applied directly to your credit card account. If you no longer have a credit card account with Capital One, you should receive a check from them.
If you've moved in the last few years, you might want to give Capital One a call and make sure that your contact information is still valid. The refunds are slated to be complete by the end of this year. Keep an eye on your statements to be sure that the credit is applied.
Not Sure If You Are Eligible?
Check your old credit card statements. I'm not sure how it will be listed because I don't have a Capital One account. You are looking for a recurring monthly charge for something like credit monitoring or payment protection. Also important is the date that you opened the account, for new coverage starting after 1 August 2010, or if you remember calling to try to cancel the coverage but continued paying for it.
Associated Actions
In a related investigation, the Office of the Comptroller of the Currency (OCC) has ordered restitution to additional consumers who were harmed by Capital One's unfair billing practices from May 2002 to June 2011.
Don't Get Scammed
If there is a big refund due to many customers, scammers are going to try to figure out a way to make money off of it. There are no fees involved in this refund, and you should not divulge any personal information to anyone contacting you by phone, internet, or text. If you are contacted by any party who wants to "help" you get your refund, or asks you to pay a fee or charge to get the refund, don't do it. If you think someone is trying to scam you, report it to the CFPB's toll free number at 855-411-CFPB.
For more detailed information, you can see:
- the CFPB press release on the subject,
- the CFPB blog post, or
- the CFPB fact sheet.
