By: Daniel Stone
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New Consumer Agency Slams Capital One
Blog written by Columbia, SC bankruptcy attorney Daniel Stone
The new consumer agency, the Consumer Financial Protection Bureau “CFPB” had its first big enforcement action in July, 2012. Capital One has agreed to pay over $210 million in sanctions for deceptive an unfair practices used when customer signed up to use credit cards through Capital One. The CFPB also announced that Capital One is not the only violator of these types of practices and they are looking at other credit card card lenders.
This is a big victory for consumer advocates who often feel there has been no formal government watchdog in the consumer arena. What will be interesting to see is if the new agency will expand or detract after the elections are decided. I would guess if Obama wins, the agency will slowly grow in size and power. If Romney wins, it will be in danger of being shut down.
The CFPB was the creation of many consumer advocates but most notably Elizabeth Warner who is running for US Senator in Massachusetts.