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      Capitol One to pay for misleading card holders

      WASHINGTON (AP) -- Capital One Bank is paying $165 million to settle charges that it pressured credit card customers to buy costly add-on services like payment protection and credit monitoring.

      The Consumer Financial Protection Bureau said Wednesday that Capital One call-center workers told customers the products were free, misled them about the benefits and let people think the services were required to hold a card.

      The CFPB says Capital One will refund about $140 million to 2 million customers and pay $25 million in penalties.

      The order against Capital One is the first enforcement action by the CFPB since it was set up a year ago.

      The agency was created under the Obama administration's financial overhaul law to protect consumers from excessive or hidden fees and other financial threats.

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