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Later this year, 2.5 million Capital One cardholders who subscribed to some of the company's add-on credit monitoring products will be receiving refunds, due to U.S. government action taken against the financial company.

The Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) found that Capital One's third party vendor was using deceptive marketing tactics in trying to sell the company's extra services, like payment protection and credit monitoring services.

Capital One used outside vendors to help it sell these services. Payment protection offered customers the option of having the bank cancel up to 12 months of minimum payments if life events that affected their ability to earn money would affect their ability to pay their credit card bills. Debt forgiveness happened if the cardholder died or was permanently disabled. Credit monitoring services included identity-theft protection, daily credit monitoring and notification and credit education advice from specialists.

The CFPB said Capital One unfairly targeted low-income customers when they called to activate a new credit card. The call centers that handled the activations were outsourced vendors, and the CFPB said those employees used high-pressure sales tactics to convince people to register for the services. The vendors misled about what the products would do, including improving their credit score.

They also deceived consumers into thinking getting these products was mandatory, although they could cancel at any time. Those customers who tried to cancel often had difficulty in doing so. Other customers were led to believe that the products were free, and still others were enrolled without granting permission to do so.

Vendors also didn't tell people who were in life situations that would affect their ability to make card payments, that the benefits wouldn't be retroactive, meaning their claims would be denied.

In response to the CFPB order, Capital One will pay refunds to those customers who initially enrolled in one of these protection services on or after August 1, 2010, or attempted to cancel the service but kept it after they talked to a customer service representative. These cardholders will receive the amount they paid for the product; a refund for any finance charges they paid in conjunction with having the product; any fees they were charged for being over their credit limits because they had the product and interest.

Capital One says it has set aside $150 million for the refunds.

The amount of the refund will be in the form of an account credit for those who are still Capital One customers, and a check for those who no longer do business with the bank. If any claims were denied because customers were deemed ineligible when the enrolled, Capital One will consider them to have been eligible and pay the claim if it's larger that the refund the customer will receive.

In response to the OCC verdict, the same parameters apply, but it also covers a group of customers who experienced deceptive practices in conjunction with Affinion credit monitoring products between March 1, 2006 and June 21, 2011, and unfair billing practices brought about by Intersections credit monitoring products that took place between May 13, 2002 and May 31, 2011.

The OCC also levied a $35 million civil penalty against the bank for violating section 5 of the Federal Trade Commission Act. Additionally, the CFPB fined the bank $25 million for violating section 1036 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

"We are accountable for the actions that vendors take on our behalf," said Ryan Schneider, president of Capital One's Card business, in a statement. "These marketing calls were inconsistent with the explicit instructions we provided to agents for how these products should be sold. We apologize to those customers who were impacted and we are committed to making it right.

When the order was announced last month, CFPB director Richard Cordray said, "We are putting companies on notice that these deceptive practices are against the law and will not be tolerated."