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Elizabeth Warren talks to supporter
Elizabeth Warren speaking with a supporter.
The first big enforcement action by the Consumer Financial Protection Bureau, conceived of and originally led by Elizabeth Warren, is netting $210 million from Capital One Financial Corp. for deceptive marketing of credit card “add-on” products. The settlement will "provide between $140 million and $150 million in restitution to 2 million customers." The remaining $60 million is penalties, $25 million to the CFPB and $35 million and pay an additional $60 million in penalties—$25 million to the CFPB and $35 million to Office of the Comptroller of the Currency, the primary regulator of banks.

This puts all the credit card companies on notice. Gouging customers with deceptive practices will no longer be tolerated. We've got Elizabeth Warren to thank for that. It was her doggedness that kept the idea of the CFPB alive during heated and difficult Dodd-Frank negotiations. And it was Elizabeth Warren who got the Bureau off the ground while Republicans were obstructing the appointment of a permanent director.

Warren's reaction (via email):

"I'm proud that the Consumer Financial Protection Bureau has stood up for middle class families by holding a major credit card company, Capitol One, accountable for deceptive practices," said Warren. "The new consumer agency is only one-year old, but it is fearless. It will hold accountable the largest financial institutions and try to make sure that even the biggest banks follow the rules."

"The CFPB has been pushing to reduce the fine print in credit card agreements and assisting with consumer complaints, and today's action shows how important it is that consumers have someone on their side.  It's critical that we keep moving forward and protect the gains we've made, to protect people from financial tricks and traps and help create a level playing field."

This action by the CFPB puts all the banks on notice, but it also makes Elizabeth Warren an even bigger target for defeat. Her opponent, Sen. Scott Brown, is already the darling of Wall Street. Expect every banker, his children, his employees, household help and his dog to donate the maximum to Brown to make sure Elizabeth Warren is kept out of the Senate.

Help Elizabeth Warren continue to stand up for middle-class families. Donate $3 to the Warren campaign on Orange to Blue.

Originally posted to Joan McCarter on Wed Jul 18, 2012 at 10:43 AM PDT.

Also republished by I Vote for Democrats and Daily Kos.

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Comment Preferences

  •  I've had dealings with Capitol One (13+ / 0-)

    I'll never ever do that again.

    They are liars, cheats, and frauds.

    "We have only the moral ground we actually inhabit, not the moral ground we claim." - It Really Is That Important

    by Diogenes2008 on Wed Jul 18, 2012 at 10:51:13 AM PDT

    •  We had nothing but good experience with online (6+ / 0-)

      banking, got pissed when they telemarketed us to come on with their  retail banking, and after seeing your comment, glad we did not bite.

      Moot now, even though we earn lest interest we dropped them during our Occupation Santa Fe 'Move your money ' push last fall.  Now all the little eggs are safely back in the credit union basket.  :)

      How did Supreme Court decision ACA help the 23 million still uncovered? Ask the 18,000 Doctors of PNHP -- they're not waiting, FORWARD now to pass H.R. 676, the “Expanded and Improved Medicare for All Act .

      by divineorder on Wed Jul 18, 2012 at 11:39:06 AM PDT

      [ Parent ]

    •  Two people very close to me have... (3+ / 0-)
      Recommended by:
      Fiona West, Diogenes2008, Orlaine

      ...been taken to court instead of settling their small (I mean small) credit card debts (they lost their jobs and couldn't pay).  What CapitolOne is farming out to aggressive debt collection law firms is ridiculous IMO.

      They are the worst.

      Daily Kos an oasis of truth. Truth that leads to action.

      by Shockwave on Wed Jul 18, 2012 at 05:16:07 PM PDT

      [ Parent ]

      •  They are ridiculous. (2+ / 0-)
        Recommended by:
        Larsstephens, Shockwave

        I had a very small credit card balance. Less than $300. Some of that was a yearly charge, and part of it was to pay for insurance in case of loss of income or disaster.

        I had both. My roommate (my only source of income at the time was renting out that room) lost his income temporarily because of Hurricane Charley.

        I called and told them about Hurricane Charley - they told me to talk to the insurance department. Tried - over and over and over again. Nobody ever answered the phone.

        So when I told Capitol One that I couldn't get through, they said "that's not our problem. Pay us the full amount, now." I said I couldn't give them the entire balance, but that I would try to make the monthly payments as soon as I could. They told me (get this) they wouldn't accept the monthly payments because I was late - even though it was because of a hurricane.

        Nothing I said made a difference. At the time, I was scrambling to get by - just keeping a roof (literally) over my head.

        They said "all or nothing" so I told them, okay - I guess it's nothing. I can't pay the whole thing, and the insurance department wouldn't answer.

        It has been eight years, and I'm still getting harassing letters from their bill collectors, and the balance they show is over $1600. It's all "late fees" etc. I owed less than $250 total at the time, but the amount they wanted skyrocketed rapidly.

        I'm on SSI, now. No way could I afford to pay them $1600, nor would I. That's usurious, and honestly - I thought that kind of thing was illegal.

        But what bothers me is that most of the money I owed them was the yearly fee and the insurance payments in case I couldn't pay. Not to mention that most of what I DID pay was insurance payments and fees.

        I used to have great credit, before I met my ex-husband. He killed that in a hurry... and the Capitol One card was an attempt to earn that credit back.

        Yeah. Rip-off city. Never ever again. I get credit card offers from time to time, but I rip them up and throw them away. I have a debit card, and that's all I want or need. I pay my bills every single month, on time. To hell with crooks like Capitol One.

        "We have only the moral ground we actually inhabit, not the moral ground we claim." - It Really Is That Important

        by Diogenes2008 on Wed Jul 18, 2012 at 10:30:09 PM PDT

        [ Parent ]

  •  I didn't need any more reason to vote for (13+ / 0-)

    Elizabeth the Consumerist, but if I did, this current action by the CFPB wold be even more convincing.

  •  Look for Brown to be silent about this in public (10+ / 0-)

    but as noted big money will try to stop this with every behind the scene trick they can.

    Conservatives supported slavery, opposed women’s suffrage, supported Jim Crow, opposed the 40-hour work week, the abolishment of child labor, and supported McCarthyism. from 'It's The Conservatism, Stupid' by Paul Waldman July 12, 2006

    by arealniceguy on Wed Jul 18, 2012 at 10:56:58 AM PDT

  •  CFPB to GOP: defund us now mutherfuckers! (3+ / 0-)
    Recommended by:
    Brainwrap, sethtriggs, Palafox

    We got bank. Suckaz.

    This post is dedicated to myself, without whom, I'd be somebody else. Though I'd still be an asshole. My Music: [http://www.myspace.com/beetwasher]

    by Beetwasher on Wed Jul 18, 2012 at 05:03:12 PM PDT

  •  More discussion from earlier today here: (3+ / 0-)
    Recommended by:
    divineorder, Palafox, Larsstephens
  •  This is a terrific first victory for the CFPB! (4+ / 0-)

    Couldn't have happened to a more fitting company, either.

    GOP = Greedy One Percent

    by Palafox on Wed Jul 18, 2012 at 05:06:22 PM PDT

  •  People (4+ / 0-)

    Now if corporations were really people and they stole hundreds of millions from people through deceptive practices then they would go to jail for a very very very long time. They would then have a period of parole where they would have to report on their behavior and be subject to additional oversight.

    But no ... some fines, that will ultimately be paid by the people who own the corporation.

    Where are the real sanctions on this?????

    Maybe some real penalties, like being excluded from some sorts of businesses for say 5 years. Or triple fines if similar practices happen again in the next 10 years. Or resignations of the individuals involved in designing and implementing the practices.

    Fines are nice ... but only blood will really get the banks' attention.

    Those who make peaceful revolution impossible will make violent revolution inevitable. - JFK

    by taonow on Wed Jul 18, 2012 at 05:06:23 PM PDT

    •  It's a start. (1+ / 0-)
      Recommended by:
      Orlaine

      Considering how many layers of Hell the CFPB had to go through just to get this far, and considering that it'll be shut down immediately in January if the GOP wins this November, I'm pretty impressed that they've shown that they have as many teeth as they have so far.

      If Obama wins and we re-take the House, I suspect we'll see the CFPB really take off next year.

  •  I have cost Capitol One at least $200 (1+ / 0-)
    Recommended by:
    flavor411

    over the years in postage and handling by never opening their business solicitations, both personal and professional (I threw one away today).

    They so want me as a customer. But their commercials are so detestable! Now I get the idea of pirates pillaging. What idiots they are. Glad they got caught stealing.

    Kudos, Elizabeth Warren — though the blowback ought to be severe as they help fund your opponent.

    It is incumbent upon the commander in chief to defeat the enemies of democracy… in this case, a two-faced narcissist and his tax-exempt horse.

    by Says Who on Wed Jul 18, 2012 at 05:23:26 PM PDT

  •  how is it that she isnt way ahead of brown (1+ / 0-)
    Recommended by:
    kempsternyc

    Drives me nuts!

    " we could go all day with the issues "

    by East Village Blue on Wed Jul 18, 2012 at 05:26:28 PM PDT

  •  This must be the end of capitalism as we know it (0+ / 0-)

    .... wingnuts everywhere are having a sad....

    The modern conservative is engaged in one of man's oldest exercises in moral philosophy;the search for a superior moral justification for selfishness

    by CTMET on Wed Jul 18, 2012 at 05:28:15 PM PDT

  •  I hope private student loans are next (0+ / 0-)

    I hope something comes out of their work with private student loan lenders. I filled out several things they asked for and also filled out a formal complaint with my lender.

    My balance has doubled since I took those loans out from Sallie Mae. They won't work with me, they won't consolidate it, they won't do anything except send me bills.

    I pay them alone $1500 a month. That's more than half of my income.

    I know this has happened to others. It's amazing to me that at 17 or 18 years old, kids are supposed to understand the effects of this on the rest of their life. Yet, meanwhile, politicians are only finally just waking up to any of it.

    And that doesn't even get into how predatory the student loan industry has become.

  •  This concerns me. (0+ / 0-)
    The McLean, Virginia-based company didn’t admit or deny wrongdoing.

    The modern conservative is engaged in one of man's oldest exercises in moral philosophy;the search for a superior moral justification for selfishness

    by CTMET on Wed Jul 18, 2012 at 05:29:37 PM PDT

  •  Hey, Capital One! (0+ / 0-)

    What's in your wallet now?

    Pro-Occupy Democratic Candidate for California State Senate, District 29 & Occupy OC Civic Liaison.

    "I love this goddamn country, and we're going to take it back." -- Saul Alinsky

    by Seneca Doane on Wed Jul 18, 2012 at 05:43:31 PM PDT

  •  this is one reason (0+ / 0-)

    the cons didn't want e warren in govt, hopefully she can take a senate seat and really cause the right even more problems, go liz, good luck.

  •  Wow, this is huge (1+ / 0-)
    Recommended by:
    Orlaine

    Isn't it? Nearly quarter billion dollars.  50 million for the CFPB (how about that taxpayers!). And the deterrent effect.

    And are we going to see Brian Williams reporting (this quote is NOT REAL)

    And that new Consumer Financial Protection Bureau, you remember the one, founded at the urging of Elizabeth Warren, now running for the Senate in Massachusetts? Well it won its first big award today, and it's a doozy. 210 million dollars from Capital One for deceptive credit card practices, including 50 million that will help run the bureau. The bureau did not receive a warm welcome from Congressional Republicans, to say the least, but now it seems to be off to a good start. Stay tuned folks, this story is not over.
    Yeah. In my dreams.

    Bold at inappropriate times.

    by steep rain on Wed Jul 18, 2012 at 05:44:56 PM PDT

    •  No, it's not Huge (0+ / 0-)

      it's a slap on the wrist... or what they call "the cost of doing business".

      Market cap value of Capital One is $32.5 Billion dollars

      http://ycharts.com/...

      "A civilization which does not provide young people with a way to earn a living is pretty poor". Eleanor Roosevelt

      by Superpole on Wed Jul 18, 2012 at 06:04:02 PM PDT

      [ Parent ]

      •  True but like ACA it's a start (0+ / 0-)

        and it is bad marketing for a customer service corporation to have to admit to gouging and being fined.

        Kind of like going to the stocks for an afternoon.  Doesn't really hurt but now everyone knows.

        •  No.the Fines Have to Be Larger (0+ / 0-)

          these cretinuous corporations only care about money.

          as far as PR-- yes it's a problem, but how many people actually know capital one just got busted?

          remember ADM? they were busted some time ago for price fixing. at the time it was the largest federal indictment/fine in history. within weeks, ADM gave a pile of money to NPR and not long after that, I started hearing what was obviously a PR effort on NPR to repair ADM's "image".

          that's when I stopped believing NPR was "alternative/proressive" media.

          "A civilization which does not provide young people with a way to earn a living is pretty poor". Eleanor Roosevelt

          by Superpole on Thu Jul 19, 2012 at 06:24:03 AM PDT

          [ Parent ]

  •  Now we know why (0+ / 0-)

    Sen. Shelby and other corporate lackeys didn't want Warren to head up this agency.

    "A civilization which does not provide young people with a way to earn a living is pretty poor". Eleanor Roosevelt

    by Superpole on Wed Jul 18, 2012 at 06:00:19 PM PDT

  •  Sweet! (0+ / 0-)

    That's also $210 million Capital One can't spend on Scott Brown, or Mittens.

  •  This is pretty fucking awesome news...... (0+ / 0-)

    At long last, a bank is paying a serious price for their fraud. But, I would add that joing a credit union/local bank will end the fraud much quicker!

  •  Let's hope it isn't toothless when it's 20 (0+ / 0-)
    "The new consumer agency is only one-year old, but it is fearless."
     The danger with agencies is that they end up cuddling up to the folks they're supposed to regulate.

    We're all pretty strange one way or another; some of us just hide it better. "Normal" is a dryer setting.

    by david78209 on Wed Jul 18, 2012 at 08:05:35 PM PDT

  •  Elizabeth Warren is a pure, wonderful, asset (2+ / 0-)
    Recommended by:
    Larsstephens, Orlaine

    to the United States and the bulk of its citizenry - The Middle Class.

    YOu Really Go Girl!


    Mitt Romney was CEO of Bain until Aug 2001. Proof of Bain & Romney Fraud

    by laserhaas on Wed Jul 18, 2012 at 08:52:41 PM PDT

  •  Ideally, The Penalty Should Include... (0+ / 0-)

    ...placing of a number of commercials equal to those they've already broadcast, with the inane theme song modified to "...Free [reverb kicks in] IF YOU BUY A USELESS OVERPRICED BUNDLED SERVICE [/reverb] Credit Report Dot Com..."

    On the Internet, nobody knows if you're a dog... but everybody knows if you're a jackass.

    by stevemb on Thu Jul 19, 2012 at 09:42:09 AM PDT

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