Capital One Sued For Credit Card Fraud

[jeffrey]

The Minnesota attorney general has decided to sue Capital One Financial Corp, accusing the company of defrauding customers by falsely advertising credit cards at low fixed rates. In a suit filed in a Ramsey County District Court in Minnesota, the attorney general claims Capital One nearly quadruples the interest rate it charges some card customers who pay a bill a day late or defaulting in another way.

According to the complaint filed, Capital One credit card holders who sign up for a fixed rate credit card with a 4.99% interest rate can see their interest rate jump to 19.8% for defaulting by paying their credit card bill a day late. This despite the fact that Capital One advertised the 4.99% rate as "fixed."




The lawsuit claims that this marketing by Capital One violates Minnesota state laws against false advertising, consumer fraud and deceptive trade practices. The lawsuit is seeking restitution for credit card holders as well as civil penalties and an injunction barring further wrongdoing.

[Fesheva]

Capital One - isn't that one of the many credit card companies also hurting people financially by not properly listing one's credit limit on their credit reports, thereby adversely affecting their creditworthiness? I heard this is common practice in the business now and it is very bad business if you ask me. It's as though we are at their mercy and it's just not fair.

[PrincessPerky]

Well as far as the 'fixed rate' thng goes, that is opposed to a variable rate, one that changes with the prez's opinion of the economy. It doesn't mean there are no penalties. I have a card with a penalty clause, if I pay late it goes up. So don't pay late! And please read the fine print (or get your dh to do it, since I get a headach even thinking about it)