Unethical Conduct
West Virginia Attorney General, Darrell McGraw, is suing Capital One for misleading practices in both lending and collection practices. The complaint was filed to the West Virginia’s Circuit Court and it states that Capital One enticed consumers with a repayment plan by mailing out solicitations disguised as new credit offers (Megan, 2010). “Capital One offered to provide credit card holders one dollar of new credit if they agreed to transfer the entire balance of a charged off account to the new credit card” (Megan, 2010). In consumers accepting Capital One’s offer they could re-age debts to find a way around the statute of limitations, which would start the old debt over (Megan, 2010).
In the lawsuit, plaintiffs claim that Capital One provides customers inadequate pre-enrollment disclosures regarding Payment Protection limitations (Spinelli Settlement). They also argued that it was too complicated to get Payment Protection benefits for eligible claims (Spinelli Settlement). Plaintiffs asserted claims for violation of contract, violations of the unjust trade practices acts of several states, violations of the Truth in Lending Act (15 U.S.C. section 1601 et seq.), and unjust enrichment. Capital One denied that it breached any contracts, denied that it engaged in any unlawful acts, and denied that it caused damages to any person (Spinelli Settlement). Capital One otherwise disputes all of plaintiffs’ claims and allegations (Spinelli Settlement). By entering into a settlement, Capital One does not admit the truth or authenticity of any of plaintiffs’ claims or allegations (Spinelli Settlement).
In January of 2012 Capital One bank forgave $3 million in credit card debt owed by West Virginia to settle the lawsuit that was filed by the state (Press, 2012). Capital One also agreed to pay $9.5 million to the state and $1 million Attorney General Darrell McGraw's office (Press, 2012). A spokeswoman for Capital One Tatiana Stead said the company has made substantial
In the lawsuit, plaintiffs claim that Capital One provides customers inadequate pre-enrollment disclosures regarding Payment Protection limitations (Spinelli Settlement). They also argued that it was too complicated to get Payment Protection benefits for eligible claims (Spinelli Settlement). Plaintiffs asserted claims for violation of contract, violations of the unjust trade practices acts of several states, violations of the Truth in Lending Act (15 U.S.C. section 1601 et seq.), and unjust enrichment. Capital One denied that it breached any contracts, denied that it engaged in any unlawful acts, and denied that it caused damages to any person (Spinelli Settlement). Capital One otherwise disputes all of plaintiffs’ claims and allegations (Spinelli Settlement). By entering into a settlement, Capital One does not admit the truth or authenticity of any of plaintiffs’ claims or allegations (Spinelli Settlement).
In January of 2012 Capital One bank forgave $3 million in credit card debt owed by West Virginia to settle the lawsuit that was filed by the state (Press, 2012). Capital One also agreed to pay $9.5 million to the state and $1 million Attorney General Darrell McGraw's office (Press, 2012). A spokeswoman for Capital One Tatiana Stead said the company has made substantial