US Consumer Financial Protection Bureau Couples First Enforcement Action With Warning to Financial Services Industry

July 20, 2012
The U.S. Consumer Financial Protection Bureau announced its first enforcement action, which was taken in regard to allegations that approximately two million customers of Capital One Bank were misled into buying credit card “add-on products.” In an action that underscores our expectation that the CFPB will utilize enforcement actions to send broad messages to the financial services industry about the type of conduct the agency seeks to discourage, the CFPB also released a bulletin to the industry describing its concerns in regard to the marketing of credit card add-on products. This update examines these actions and their implications for the financial services industry.