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July 25, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a national law firm concentrating on investor rights, consumer rights and the enforcement of federal antitrust laws, is investigating potential wrongdoing at Capital One Financial Corp. ("Capital One" or the "Company") (NYSE: COF). The investigation focuses on possible breaches of fiduciary duties by the Board of Directors and/or officers of the Company in connection with the improper marketing and implementation of payment protection plans and other fee-based services.
Specifically, the investigation concerns monetary damages and reputational harm suffered by the Company due to its directors and/or officers: (1) causing the Company to engage in fraudulent and illegal marketing practices in connection with its payment protection programs; (2) failing to maintain adequate internal controls over the Company's marketing and sales of fee-based financial products, including payment protection programs; and (3) falsely certifying to regulators that the Company had adequate internal controls sufficient to oversee the Company's compliance with all applicable legal and regulatory requirements.
As part of a recent settlement with the Consumer Financial Protection Bureau ("CFPB"), Capital One has been ordered to pay
$210 million to settle allegations it misled credit card customers into buying unwanted "add-on" products such as payment protection and credit monitoring. The Capital One credit card product settlement was the first public enforcement case brought by CFPB, established by the Dodd-Frank Act to increase oversight of consumer financial products.
The CFPB stated that Capital One customers were wrongly led to believe by call center workers that they needed to buy add-on services to activate their cards and that debt protection and credit monitoring were free services. Other customers were left with the impression that their credit scores would improve with the purchase, while some got billed even though they were not eligible. The bulk of the settlement will go to consumers, with
$60 million going toward penalties,
$25 million to the CFPB, and
$35 million to the Office of the Comptroller of the Currency.
Request more information now by clicking here: www.faruqilaw.com/COF.
Faruqi & Faruqi, LLP is a national law firm which represents investors and individuals in class action and derivative litigation. The firm is focused on providing exemplary legal services in the areas of securities, shareholder, antitrust and consumer litigation, through all phases of litigation. The firm has an experienced trial team which has achieved significant victories on behalf of the firm's clients.