The Consumer Financial Protection Bureau (CFPB) of the United States has had some recent big victories against three major creditors – American Express, Capital One, and Discover. As a result, some consumers will be receiving money back from their creditors. For example:
- American Express customers who settled old debts based on misinformation supplied by AMEX may receive a refund. For example, if American Express told you that if you settled a debt, it would improve your credit rating; however, as it turns out the debt was already too old to report and would not change your credit history. In this case, you might be owed a refund from AMEX.
- Capital One customers who signed up for an add-on product, even those who signed up and then unsuccessfully tried to cancel a product, will be entitled to a refund of the product fees plus any finance charges and overdraft fees.
- Discover customers will also be entitled to similar refunds for add-on products like ID theft protection and credit score tracking.
More details can be found through the CFPB website. For example, American Express is now bound by a Consent Order [Here: http://files.consumerfinance.gov/f/2012-CFPB-0002-American-Express-Centurion-Consent-Order.pdf requiring it, among other things, to stop deceptive advertising.
The CFPB also provides fact sheets on each of these cases. Here is the Capital One fact sheet: http://files.consumerfinance.gov/f/201207_cfpb_ending_deceptive_marketing_practices.pdf
In short, it is important that you know all of your rights and the current status of the law before you settle a debt with a credit card company. And, if you are one of the lucky ones getting a refund, you have the CFPB to thank!
Florida Consumer Law Blog by Sasha Sampaio, Esq. 