WASHINGTON -- Capital One Bank is paying $165 million to settle charges that it pressured credit card customers to buy costly add-on services like payment protection and credit monitoring.
The Consumer Financial Protection Bureau said Wednesday that Capital One call-center workers told customers the products were free, misled them about the benefits and let people think the services were required to hold a card.
The CFPB says Capital One will refund about $140 million to 2 million customers and pay $25 million in penalties.
The order against Capital One is the first enforcement action by the CFPB since it was set up a year ago.
The agency was created under the Obama administration's financial overhaul law to protect consumers from excessive or hidden fees and other financial threats.
AP Business Writer
The Associated Press