FOR IMMEDIATE RELEASE
February 18, 2010
Contact: Robert M. Garsson
OCC Reaches Agreement with Capital One on Unfair Credit Card Account Closing Practices
WASHINGTON — The Office of the Comptroller of the Currency (OCC) announced today that it has entered into a Formal Agreement with Capital One Bank (USA), N.A., Glen Allen, VA ("Capital One"), directing Capital One to reimburse consumers harmed by Capital One’s credit card account closing practices. The practices in question occurred from 2004 to 2006, before the Bank became a national bank subject to the OCC’s supervision.
The practices cited by the OCC in the settlement involved Capital One's assessment of annual membership fees, on accounts with no outstanding balance owed, after consumers had requested to close the accounts. The OCC found that these practices were unfair within the meaning of the Federal Trade Commission Act.
Capital One voluntarily entered into this agreement to ensure that consumers affected by the unfair practices are fully reimbursed. In addition, although not found to be unfair under the FTC Act, the bank will reimburse all consumers who paid off their accounts within 90 days after requesting that the accounts be closed. As a result of the OCC’s action, Capital One will make reimbursement to consumers totaling $775,000.
The practices in question were brought to the OCC’s attention by the offices of the California and West Virginia Attorneys General. These state agencies provided important cooperation and assistance to the OCC in connection with its review of this matter.
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