Online Calculator | Capital One Faces Interest Rates Lawsuit

Capital One Faces Interest Rates Lawsuit

Capital One is being sued because they don’t tell their customers when they change credit card interest. Capital One was being sued for breaking the Truth in Lending Act earlier this year, but it was dismissed by a judge. The 9th Circuit thought the lawsuit should be reinstated on July 22. Now there are credit card rules making it illegal to raise credit card rates without informing consumers. Article resource – Capital One sued once again for deceptive interest rate increases by Personal Money Store.

Capital One class action lawsuit

Deceptive lending and being unfair competition are the reasons for the Capital One class action suit as they’re said to change interest rates without “clear and conspicuous” warnings first. Raquel Rubio was a consumer who had been with the business for years and never gave them difficulties and, as outlined by Courthouse News Service, then saw her interest nearly double suddenly.

Capital One deception

Rubio sued Capital One for breach of contract, violation of the Truth In Lending Act and unfair competition. A federal judge dismissed the class action, ruling that Capital One satisfies its obligation to be clear and truthful by stating the rates and fees were subject to change. Capital One can “amend or change any part of your Agreement, including periodic rates and other charges, or add or remove needs … at any time.”

Capital One buries deception in fine print

The Capital One class action lawsuit was revived on appeal. A three-judge panel ruled that Capital One can’t represent the rates are “fixed” if they’re not. Reuters reports that Rubio had accepted a February 2004 mail solicitation from Capital One that offered a credit card with a 6.99 percent rate on balance transfers and purchases. In 10 point type in this offer, it explained that under certain circumstances, the interest rate might be raised. But in eight-point type on the same page, it also said terms were “subject to change,” and a cardholder agreement that Rubio received the next month said Capital One could “amend or change any part” of her agreement “at any time.”. 15.99 percent became the rate Rubio had to pay as of August 2007 although she hadn’t broken the Capital One agreement.

Resources

Courthouse News Service

courthousenews.com/2010/07/22/29062.htm

Reuters

reuters.com/article/idUSN2116752120100721

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