Three credit cards involved in fraud, 6 million cardholders will receive refunds

Three credit cards involved in fraud, 6 million cardholders will receive refunds Holders of American Express, Discover Card and Capital One...

Three credit cards involved in fraud, 6 million cardholders will receive refunds Holders of American Express, Discover Card and Capital One One) Credit card customers, please note: Don’t be surprised if you see a chargeback on your monthly statement. The Consumer Financial Protection Bureau (CFPB) found that these three credit card issuers had defrauded cardholders. It believed that they owed 6 million customers US$435 million and ordered the card issuers to refund the money. Consumers do not need to take any action, and refunds will be credited to their accounts soon. American Express cards will begin issuing them in October, and most other cardholders will receive them before the end of March next year. The Financial Protection Bureau found that American Express affiliates committed numerous violations, including charging late fees that were higher than allowed by law and promising customers nonexistent bonuses, and ordered it to refund $85 million to about 250,000 customers. For example, federal regulators found that customers were notified that American Express Centurion Bank had a "Blue Sky" credit card program with a $300 bonus, but many customers who participated did not receive the $300. Now federal regulators are asking American Express to return the bonuses to customers. American Express said other refunds will be made on a case-by-case basis and whether customers qualify will be determined by regulators. In July this year, the Financial Protection Bureau also ordered Capital One to refund $150 million to 2 million customers because its third-party vendors pressured and misled credit card customers to purchase other products or services. Capital One said it will issue refunds in the first quarter of this year. Cardholders who participated in Capital One's payment protection or credit monitoring products from August 2010 to January 2012 but have not yet received their refunds should be able to receive their refunds. Capital One Financial said refunds issued to customers will vary depending on when they participated, but it is expected to average less than $100. Two months after it announced its crackdown on Capital One, the CFPB's Financial Protection Bureau investigated Capital One and ordered the bank to refund $200 million to more than 3.5 million cardholders after it discovered that from December 2007 to August 2011, the bank asked customers to purchase credit protection products over the phone. In addition, Discover stated that it expects to send refunds at the beginning of the new year and complete the refund process in mid-February. The Financial Protection Bureau said it found that the company's telemarketers used deceptive language to persuade cardholders to buy a number of products, including identity theft protection, credit score tracking, wallet protection and payment protection. Most product fees range from $2.99 ​​to $9.99 per month. A spokesman for the Financial Protection Authority said if you think you are due a refund but haven't received one, contact your card company first. Only then contact the Financial Protection Bureau.