Just in time for the new year, $435 million in refunds will be on their way to roughly six million customers who have a credit card with either Capital One, American Express or Discover. This is happening because the Consumer Financial Protection Bureau has cracked down on deceptive credit card practices, of which, apparently, there is plenty. The CFPB announced the impending refunds in October. Everyone affected should see their dough before the end of March.
If you have one of these cards, or did in the past, there is nothing for you to do. You’ll either see a credit on one of your statements or you’ll receive a check in the mail. Here’s what prompted the big fines, according to numerous published reports, including CNN:
* American Express got nailed for allowing subsidiaries to impose higher late fees than allowed and for promising customers non-existent monetary rewards. Penalty: $85 million to 250,000 customers
* Capital One and its third-party vendors were misleading and pressuring customers to buy products/services when they opened their account. Penalty: $150 million to two million customers
* Discover’s telemarketers were charged with using deceptive language to encourage customers to pay for other products like payment protection, credit score tracking and identity theft protection. Penalty: $200 million to 3.5 million cardholders
So, keep an eye on your credit card statements. If you think you are owed a credit, check with the credit card company first. If that doesn’t bring satisfaction, contact the Consumer Financial Protection Agency.
I’m taking a couple of weeks off to recharge batteries and get ready for the new year. I hope and your family have a great holiday time! And, until next time, here’s to good planning!
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