GE Capital to pay $225M in consumer relief for deceptive and discriminatory credit card practices

CNBC with the Associated Press
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In the largest federal settlement of its kind, the Consumer Financial Protection Bureau ordered GE Capital Bank Thursday to pay an estimated $225 million to consumers "harmed by illegal and discriminatory credit card practices."

The bureau said in a release that GE Capital, now known as Synchrony Bank, must refund $56 million to approximately 638,000 consumers for deceptive marketing practices.

A joint enforcement action by the bureau and the Department of Justice also requires GE Capital to give an additional $169 million to about 108,000 borrowers who, the release said, could not receive debt relief because of their national origin.

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The settlement resolves allegations that the bank excluded Hispanic borrowers from two of its credit card debt-repayment programs.

The bank, now known as Synchrony Bank, did not immediately return the Associated Press' calls seeking comment.

—By The Associated Press contributed to this report.