The Consumer Financial Protection Bureau (CFPB), which was created after the signing of the Dodd-Frank financial reform bill, is doing its job.
Capital One, the fifth largest bank in the country, said Wednesday it reached an agreement with regulators to pay $210 million to resolve charges that it misled and pressured customers into purchasing unnecessary products.
The McLean bank has agreed to refund $150 million to 2.5 million consumers enrolled in debt cancellation as well as credit and identity monitoring products on or after Aug. 1, 2010.
As a part of the agreement, Capital One will pay a $35 million fine to its banking regulator, the Office of the Comptroller of the Currency. It will also hand over $25 million to the Consumer Financial Protection Bureau to settle an enforcement order tied to the alleged actions.
The Republicans obstructed the appointment of the head of the CFPB for nearly a year while demanding that the agency be rendered toothless in exchange for confirmation.
Fortunately for America, the Republicans didn’t have their way. Richard Cordray was ultimately named the director of the bureau by President Obama with a recess appointment and without surrendering the enforcement power of the agency.
If the president had not made the recess appointment, it’s highly likely the agency would still be without a director.