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Capital One Sued by West Virginia Attorney General

January 26th, 2010 · 20 Comments · Debt Collection, I'm suing those guys!, Legal Stuff

by Kristy Welsh

(Last Updated On: April 6, 2011)

Boy, we sure love Capital One here at creditinfocenter.com. Like a politician who is constantly having affairs or accepting big bribes, they provide us with lots to write about.

The latest? The West Virginia Attorney General, Darrell McGraw, is suing them for deceptive practices in both lending and collection practices. According to the press release issued by the attorney general’s office:

… unfair and deceptive acts and practices, unlawful debt collection practices, and unconscionable conduct in connection with their credit card lending and collection practices….

… Capital One solicited consumers to enter into debt repayment plans by sending them solicitations that were disguised as offers of new credit. The offer was sent to consumers who had charged-off accounts with Capital One or other creditors. Under the terms of the offer, Capital One agreed to provide the consumer $1.00 of new credit in exchange for the consumer’s agreeing to transfer the entire account balance of a charged-off account to the new credit card account.

Consumers were required to make payments on the old debt in order to receive any further increases in the credit limit on their new credit card. By transferring the old debt onto a new credit card, Capital One was able to charge interest, late fees, and over-the-limit fees on debt that otherwise would not have been subject to those fees.

The lawsuit is the latest in a 5 year battle between McGraw and the credit card company. The story makes for a great soap opera:

  1. McGraw received 264 complaints about the company, leading to the issuance of subpoenas in April 2005.
  2. In 2007, the Honorable Judge Hoke, Circuit Judge of Lincoln County, ordered Capital One Bank and Capital One Services to provide the requested information.
  3. Capital One Bank changed to a national bank.
  4. Capital One appealed the ruling to comply with requests for information. Their argument: Capital One Bank’s change to a national bank meant the bank could only be regulated by the Office of the Comptroller of Currency.
  5. Superior court ruled for Capital One.
  6. McGraw dropped the suit.
  7. In 2008, McGraw filed a motion in U.S. District court to force Capital One into complying with his investigation. The request was granted.
  8. In January 2009, Capital One filed a motion to overturn the Circuit Court’s decision to allow the investigation, and this request was denied. U.S. District Judge Joseph Goodwin said Thursday that McGraw’s investigation was “hijacked” but ruled he could still probe Capital One Services.
  9. On January 22, 2010, McGraw filed his new lawsuit.

Have you had your own run in with Capital One? Tell us about it by leaving a comment!

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20 Comments so far ↓

  • Mark

    I am being sued by Capiyal One and court date is in August. I live in WA state. Can anyone help me out??? Thanx anyone.
    Mark

  • Mark

    I sent a response to the attorney’s sueing me for Capital One but got no response and now I just got a notice that I have a court date in August. I live in the Seattle area. Any help would be greatly appreciated! Mark

  • AP

    I have a Charge off by Capital One. They are telling me that because I applied but phone or on the Internet, they do not have a paper copy of the application on file to send me. Also, that Capital One has a valid contract for the amount I owe. I need help. What should I do? How can they have a valid contract without a paper copy with my signature? Can somebody help me out with me next step….Thanks

  • Mike

    Mark:

    Re CAP ONE. I am investigating gcliams against CAP ONE. Please send copies of your paperwork. I assume suttell ar ethe Attorneys. I amy be able to refer you to an attorney willing to assist you in the Seattle area. I am Washingotn state chair of the National Assocaition of Consumer Advocates. NACA also has a web page for refferrals.

  • Donna

    On 6/15/10 (yes, a couple of days ago!) I transferred a balance from another credit card to my Capital One card. The VERY next day, yesterday, Capital One called to tell me that they were REDUCING my credit line (I have not had late payments and ALWAYS pay more than minimum on all of my cards!!!) and it was going to be lower than what my actual balance was going to be with the APPROVED transfer! I went ballistic. I told them that I was hanging up with them and calling the NYS Attorney General’s Office. They immedietly put me on hold and after a few minutes they told me that they would reduce my credit line by “only $400.00, so that I wouldn’t be over the limit.”

    I used to LOVE this company. Now I can’t pay them off quickly enough and I will be sending their cut up card back to them in one of their own envelopes.

    They had NO REASON to reduce my credit by ANY amount. Scuzzballs. I can’t wait to get rid of them.

  • KAREN

    Capital One are vikings: Raid, R@pe and Pillage. I’m getting sued also. They didn’t serve me, they served my parents. My mom told me my step-dad answered the door and a man was asking for me, and my step-dad said I didn’t live here. Then the man asked if he was my father, and he said, “I can honestly say I am not her father.” Then the man asked, “Step-father?” Then my step-dad shut the door without answering him, and the man put the document through the mailbox slot.

    So am I legally served if the guy puts it in the mailbox, and not directly to me? I have about 5 more days before my 30-day response is up. I called legal aid for help last week, and so I hope they get back to me quick!

  • Nancy Holyfield

    I was sued by capital one bank for default on a credit card. This was after they continually did not post my payments on the day I called in the payments on the phone (and paid the phone fee to pay the bill on time). The resulting fees were $39 late fees, then another $39 because their charges knocked my acct over the limit. Every time they posted my payment the day after I paid it, they refused to take the billing errors off my account.

    After sever times of doing the same thing to my account, I told them I was never going to pay them again until they took the billing errors off my account. I didn’t pay them and they sued me. I answered my lawsuit in the required time and filed a counter suit against them for billing errors and damages related to not being able to pay my bill because they would never giv e me the correct amount to pay (due to all their billing errors because of not posting payments on the day they were paid). So now I have received paperwork from Capital one’s lawyers stating to the court that my counter suit is frivolous and that they deny the charges and claim they didn’t do it.

    At the same time, I have already submitted copies of my bill to the court which when I called in the payment and when they posted it one day after the due date. So what do I do now. I can’t afford an attorney but I have a valid case for my counter suit against them. Is there any lawyer out there who would like to file a class action lawsuit against capital one bank.

  • Kristy Welsh

    I’m sorry – but even as unethical and shady as their practices are, you don’t have a case. You can’t just say “I’m not going to pay you until you straighten this out.” Submitting your arguments in court will buy you nothing. You needed to have paid them and then worked out your grievances and hopefully received your money back. I’m sorry.

  • justme

    I am in missouri and would like to know if there is any lawyer here looking into the practices of capitol one. I had several accounts with them, what I dont’ understand is how finance charges can take you over your limit, when you do not know what day nor how much ahead of time they will be, then they sock you with a over limit charge too. I have two lawsuits against me for two cards, both suits could not be served and now awaiting dismissal, however the ‘law firm’ that has these accounts never validated them as requested via certified mail. Yesterday I received a ‘statement’ from capitol one on one of the accounts that coincidentally shows interest charges for the months since the lawsuit was initially filed, and two charges for ‘court costs’. I have not seen anything like this before, they charged off this account according to my credit report, and the ‘owner’ in the lawsuits is Tsys Debt Management. The balance on the statement is exactly what capitol one reported on my sept credit report.

    Anybody suggestions ??

  • william gregory

    I live in Arizona and just received a billing statement for a Capital One card that was charged off several years ago. I have had no communication with them for over 9 years.The account also came off my credit reports in early 2008. The balance is now a over $4000. The credit limit on the account was $1500. I know that this has passed Arizona SOL. What can you advise?

  • Kristy Welsh

    I’d send them a strongly worded letter that the SOL is passed and to not contact you about the debt in the future. They should go away.

  • Kate

    I made a deposit through ATM machine by cash. I have a deposit slip showing the transaction # , the date and the amount. Few days later I noticed that the deposit wasnt processed to my account. After Card Service Dept investigation, they said that they did not have any over or less balances that day. Of course NOT! My money was received, but the question is where they were deposited? I filed the claim with BBB. OCC and General attorney of VA…I dont know what else to do to prove their unprofessionalism in resolving this issue. they should have ATM video records, the envelope with tellers’ initials who accepted the money..so, where did the money go? i want to battle! is it worth to file the case with the lawyer?

  • Bobby

    William – it’s up to the Credit Bureau to remove the debt. If still on there, send them a CERTIFIED LETTER. They will verify the last date of pymt. , notify the creditor and remove it. Ignore the cap one ltr., no way they can collect. There is almost no chance it will suddenly reappear on the credit report.

  • Jay

    I am being sued by a collections agency which claims to represent Capital One. I am so frustrated that I have been thinking about ‘death’. I have never been through this type of stress before. I owe too much in credit card debt to pay in one lump sum. However, I would like to be able to pay what I owe in installments… but to who truthfully owns the account! This particular CA is not mentioned on my Trans Union or Equifax credit report forms (I am in the process of getting my Experian CR). I have less than two weeks to ANSWER this alias summons, die, or try to fight the veracity of their claim. PLEASE HELP ME! I HAVEN’T EVEN BEEN ABLE TO SEE CANADA YET… I’D HATE TO DIE WITHOUT EVER HAVING SEEN CANADA… HELP ME PLEASE THANK YOU ALL FOR ANY AND ALL ASSISTANCE.

  • madji

    Here is a complaint I sent to the treasury department in avail. the bank is foreclosing my house any day now.
    The bank is about to foreclose on my home. Please help me file a suit against the bank. I have included the complaint I had send to the treasury department last year to sum up my ordeal with the bank.
    I am writing to complaint about Capital One Bank for refusing to give me an answer to my application for loan modification under the government home affordability program. I had first apply to get qualify around the end of May 2009, my application was assigned to a loan processor named Kenly I waited more than two months with no answer and no call back to the many calls I had placed to Kenly’s extension.

    In July, when I missed a month payment I was contacted by the Capital On bank earl loss mitigation department and I was told that I needed to apply again as there was no recode of my first application in their system. I was emailed a new application which I completed and sent back via express mail on July 31, 2009. On August 15, 2009 I received a letter stating that my application is being reviewed. More than two months have passed since with no progress, every time I call to check on the status of the application I get the same line “I am not the only applicant they have thousands of applications to deal with”. On October 7, 2009 I called again and I was connected to Andrea the loss mitigation processor assigned to my application who put me on hold for close to 20 minutes to look for my application at her return to the phone she informed me that my application is not a priority as I am current on my payments, the applicants who are already in foreclosure proceeding are her priority.

    I do not think it is neither fair nor right that Capital one bank is going to force me to go into foreclosure before I can get some assistance after five month of being given the run around. I have tried to get help from other banks but I was referred back to Capital One bank as under government program Making Home affordable the original loan originator is the only bank allowed to modify my loan. Any assistance, you can provide me to help resolve this matter will be greatly appreciated.

    Thank you in advance

  • Ben Matheny

    Capital One never learns

  • Ben Matheny

    We have a bit of a corruption problem in Georgia which has led to a free for all for Capital One and a Law Firm that collects those debts. After so many complaints of illegal tactics the Governors Office sued the Hanna Firm but the Supreme Court of Georgia held 4-3 that a Law Firm could not be regulated by the Executive branch. The Most Bizzare part of that decision is that it is the Supreme Court itself who has the responsibility to regulate Legal practice in Georgia via the State Bar. Hanna has contributed 10K to Georgia Attorney General Baker and Hanna came to court defended by former AG Bowers. So the stench of corruption in Georgia is crystal clear. Hanna, thru political payoffs is now officially above the law. He will frequently place false information in debtor files to win a case. But hey, Georgia after all has alway been super corrupt.

  • bob

    This scumbag company claimed I had a charge that put me over my limit. I offered them evidence to show that their record was innaccurate and requested that my account be closed. They refused to close my account. They charged it off in Oct of 2010. IN Jan of 2011 I requested validation, full accounting and filed an experian dispute. Capitol one failed to report that the debt was in dispute, illegaly refreshed the chargeoff date to Jan of 2011 and slammed on a bunch of fees that were not being added since chargeoff in Oct of 2010. They considered my dispute and validation request to be subject to refreshing the charge off date.

    Now they are going to charge it off as bad debt for a 2nd time and extend the statute of limitations. how can they do that with IRS? They committed FCRA violations by not reporting it was in dispute and illegaly refreshing the chargeoff date and adding fees. They stopped reporting in Oct 2010 than started again after my dispute and request for accounting. They still just ignore my request for accounting because they know it will show they were innaccurate when they alleged the acct went over the limit and jacked up my minimum payment so high I couldnt make it after a long term perfect payment history.

    As soon as I said I would fax them proof of their error to adjust my account, they told me I had to pay their outrageous minimum payment based on error before they would allow me to dispute it. They then hung up on me, blocked access to my account so I couldnt get the list of transactions to prove their deceipt and then blocked my phone access to their office and rerouted my call to collections. I explained to collections that I disputed the debt and requested to speak with a capitol one employee. They refused to let me speak to capitol one unless I paid them. This was all within 24 hours of missing my first payment ever due to their fraud. They also refused to accept my minimum payment I offered that was the actual amount owed if it were not for their error.

  • Andrew (Jake) Carney

    I got a call from Capone telling me that my credit line was cut from $2500. to $500. I asked why and the woman said that w/in a few days I would receive a letter.
    I called the customer line and insisted on a supervisor. After much back and forth he told me that it was because I did not have a mortgage. I have been with Cap for over 15 yrs. I have the greatest retirement and SS and VA disability that I can think of for income. I never missed a payement and if I did it was because I could not sit because of my back. I need help and a direction. I live in New Jersey.
    Thank you for listening,
    Andrew Carney

  • Andrew (Jake) Carney

    PS
    I only missed payment by only a few days.

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