Maloney statement on CFPB/OCC-Capital One settlements

WASHINGTON, DC – Rep. Carolyn Maloney (D-NY), ranking member of the House Financial Services Committee’s subcommittee on Financial Institutions and Consumer Credit, and principal author of the Credit Cardholders’ Bill of Rights (passed as the “Credit CARD Act”) issued the following statement on the settlement announced today between the Consumer Financial Protection Bureau, the Office of Comptroller of the Currency, and Capital One:

“This settlement is good news for 2 million consumers, and a clarion call for ethical behavior by credit card companies. This is exactly how my Credit Cardholders’ Bill of Rights—and the CFPB—were designed to work.  

“Capitol One deceptively marketed so-called ‘payment protection’ plans to new customers; they have cooperated fully with the CFPB and OCC and will make full restitution to consumers affected and pay a fine for their behavior.

“This is further confirmation—if any were needed—of the benefit of the CFPB and financial reform to American consumers.”

BACKGROUND.

Maloney was the principal author of the Credit Cardholders’ Bill of Rights, first introduced in 2007, which ultimately passed as the “Credit CARD Act” in May, 2009. The Act was designed to rein in unfair, abusive and anti-competitive practices by credit card issuers. The Consumer Financial Protection Bureau, created under the Dodd-Frank reforms, became the chief enforcer of the CARD Act when it opened for business almost one year ago. Find out more here.