CFPB Action Against Capital One Confirms Issues Raised During Acquisition Challenge by NCRC
Washington, DC – The National Community Reinvestment Coalition (NCRC) today applauded the Consumer Financial Protection Bureau for their enforcement action against Capital One. The action follows NCRC’s challenge of Capital One’s acquisition of ING Direct and HSBC’s credit card unit. NCRC argued that the company should not be allowed to become Too-Big-to-Fail given its record on consumer issues.
“CFPB’s enforcement action sends a clear message: it’s a new day. We applaud the Consumer Financial Protection Bureau for doing exactly what Congress intended for them to do: acting as a nimble and powerful agency that protects consumers against unfair and abusive actions,” said John Taylor, president & CEO of the National Community Reinvestment Coalition.
“Today’s enforcement action against Capital One for deceptive credit card practices confirms and vindicates the serious concerns the National Community Reinvestment Coalition raised about Capital One during their acquisition of ING Direct. Though the merger was approved, it is clear that the scrutiny brought to bear from NCRC’s objections has born results for consumers. This penalty calls into question why the Federal Reserve allowed a bank, known for its deceptive practices, to get even bigger,” said Taylor.
“When a consumer deals with a financial institution, they should be guaranteed fair treatment. This is our goal. NCRC has also filed complaints against Capital One in several other areas, including for mortgage servicing practices and discriminatory lending. These complaints remain active,” said Taylor.
“We’d like to believe that the CFPB’s action fixes all of the problems with Capital One, but that is not the case. We continue to have concerns about Capital One’s abusive treatment of consumers, business lending via credit cards and their record of investing in communities, as they have grown to be the 5th largest bank in the country,” said Taylor.
The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development and vibrant communities for America’s working families. To find out more, visit http://ncrc.org.