GE Capital to Give Back $225 Million to Customers

What's Hot


The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

How a Mexican Tariff Will Boost the Cost of 6 Common PurchasesFamily

This Free Software Brings Old Laptops Back to LifeMore

How to Protect Yourself From the ‘Can You Hear Me?’ Phone ScamFamily

Report: Walmart to Begin Selling CarsCars

Where to Sell Your Stuff for Top DollarAround The House

Is Your TV Tracking You? Here’s How to Tell — and Prevent ItAround The House

11 Staging Tips to Help You Get Top Dollar When Selling Your HomeAround The House

21 Restaurants Offering Free Food Right NowSaving Money

20 Simple Hacks to Make Your Stuff Last LongerAround The House

4 Car Insurers That Might Raise Rates Even When the Accident Wasn’t Your FaultCars

How to Invest If Trump Kills the ‘Fiduciary Rule’Grow

12 Surprising Ways to Wreck Your Credit ScoreBorrow

9 Secret Ways to Use Toothpaste That Will Make You SmileAround The House

The 2 Types of Music That Most Improve Dog BehaviorFamily

The settlement with the Consumer Financial Protection Bureau is over discrimination against Hispanic customers and practices used to sell credit card add-ons.

In the largest credit card discrimination settlement in U.S. history, the Consumer Financial Protection Bureau has ordered GE Capital Retail Bank to fork over $225 million in relief to customers for discrimination and illegal credit card practices, The Wall Street Journal says.

GE Capital, which recently changed its name to Synchrony Bank, is accused of excluding about 108,000 Spanish-speaking customers from two debt-relief offers. That big mistake came with a pretty hefty price tag: A total of $169 million will be paid out to those customers. The refund will either come in cash or a reduction on customers’ credit card balances.

Acting assistant attorney general Jocelyn Samuels said in a conference call with reporters that the Spanish-speaking customers were “denied a significant financial benefit provided to other customers,” the WSJ reported.

The bank will also refund about $56 million to 638,000 customers to settle allegations that it used deception to get people to purchase credit card add-ons and services. The WSJ reported:

The company’s telemarketers “often did not make it clear that consumers were actually purchasing these products,” said CFPB director Richard Cordray. “They made it seem like the consumers were updating their accounts or that the telemarketers were handling other administrative tasks.”

According to CNN Money, GE Capital said it was proactive and self-reported the discrimination issue to the CFPB.

“The bank identified this matter through its own internal audit, promptly reported it to the CFPB, and commenced a remediation,” the bank said in a statement. “The bank regrets this error. Its priority is treating customers fairly and when issues are identified, it is committed to making it right.”

Although this is just the second time the CFPB has gone after a bank for discrimination, it’s the sixth time the government watchdog has taken action against a credit card company for illegal practices regarding add-ons.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: 21 Restaurants Offering Free Food Right Now

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,765 more deals!