(Updates to include number of customers receiving
WASHINGTON Feb 18 Capital One Financial Corp
(COF.N) will reimburse about $775,000 to customers following an
agreement with U.S. bank regulators over complaints of credit
card account closing practices.
The practices occurred from 2004 through 2006 and involved
annual membership fees, the Office of the Comptroller of the
Currency said on Thursday.
Capital One charged the fees on accounts with no
outstanding balances after consumers had asked the bank to
close the accounts, the agency said.
Capital One expanded its reimbursement beyond practices
flagged by the OCC to include customers who paid off accounts
within 90 days after requesting that the accounts be closed.
"This problem was the result of a systems issue that we
fixed in 2006," Capital One said in a statement. "At the time,
we refunded membership fees for many customers who contacted us
directly but, in retrospect, we should have done so for an
additional 3,400 customers, as well. We sincerely regret this
The OCC said Capital One voluntarily entered into the
agreement. Capital One will distribute the $775,000 to more
than 18,000 customers.
(Reporting by Karey Wutkowski; Editing by Robert MacMillan and