Daily News: June 20, 2014

GE Capital to Pay $225MM to Credit Card Customers

The Consumer Financial Protection Bureau (CFPB) is ordering GE Capital Retail Bank, now known as Synchrony Bank, to provide an estimated $225 million in relief to consumers harmed by illegal and discriminatory credit card practices.

According to a CFPB news release, GE Capital must refund $56 million to approximately 638,000 consumers who were subjected to deceptive marketing practices. As part of the joint enforcement action by the CFPB and Department of Justice, GE Capital must also provide an additional $169 million to about 108,000 borrowers excluded from debt relief offers because of their national origin.

This order represents the federal government’s largest credit card discrimination settlement in history.

To read a related Justice Department news release, click here.