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CFPB Requires Credit Card Issuers to Refund Money to Consumers
Posted By Miranda On 01/09/2013 @ 7:15 am In Credit | 3 Comments
The Consumer Financial Protection Bureau  (CFPB) is a relatively new government agency, but it is already taking names and busting heads. One of the more recent decisions made by the CFPB is to require some credit card issuers to refund money to consumers.
The CFPB points out that some of the marketing practices used by Capital One, Discover, and American Express deceived customers in terms of what they could expect from certain products. In some cases, consumers were misled into buying products or services. The result is that a total of $435 million in refunds is on the way to some customers.
The refunds are coming as a result of different problems from different issuers. The violations include:
In many cases, those pushing various products or services deceived consumers about what they were getting, how it was being paid for, or whether or not they really needed it. If you enrolled in these types of products during the time periods indicated, you can contact your credit card issuer for information about your refund.
For the most part, the refund is coming in the form of a statement credit. American Express has already started paying out as required, and Capital One promises to start issuing refunds in Quarter 1 of 2013. Discover should be issuing refunds soon. For most customers, the amount is likely to be less than $100. Your balance will be reduced by the requisite amount, or you will have a credit on your statement to count against future balances. If you are no longer a customer, the credit card issuers are supposed to issue you a check.
You shouldn’t have to do anything to receive the refund; it’s supposed to be automatic. However, realize that not every customer will receive the refund. It’s only meant for those who actually purchased the products under investigation, and from those who purchased them from representatives engaging in deceptive practices. If you think that you are entitled to a refund, and the credit card issuer says that you aren’t, you can contact the CFPB to see if you have a case.
Anytime your credit card issuer offers you a product or service, you should be wary. Most consumers don’t need credit protection, and it’s possible to get credit monitoring services from other sources. Think carefully before you agree to purchase these products, and make sure you understand the terms and conditions.
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