SAN FRANCISCO, Dec. 8, 2011 /PRNewswire/ -- A group of
consumers have filed a class-action lawsuit against credit-card
giant Capital One (NYSE: COF) claiming the company lures consumers
into transferring large balances with promises of interest-free
money, but engineer the offer's details to allow the company to
charge interest rates exceeding 13 percent.
The case alleges that Capital One deceived cardholders by
claiming that a cash advance obtained through the company's
transfer balance program would include a zero percent annual
percentage rate, or APR, for one year. At the same time, the
company allegedly promised that consumers' credit balances through
credit cards and other lines of credit covering regular purchases
would not gain interest as long as the balance was paid within 25
days.
However, according to the complaint, cardholders who took
advantage of the transfer balance program were charged interest
rates exceeding 13 percent for purchases made through credit cards
and other lines of credit, even if the balance was paid on
time.
The lawsuit claims that Capital One strategically and improperly
applied payments to the transfer balance rather than to consumers'
credit, also known as the purchase balance. This caused many
consumers to be charged for the remaining balance at interest rates
exceeding 13 percent, even if they paid off their purchase balance
on time.
Consumers who used Capital One's program are part of a proposed
class identified by the lawsuit filed by consumer protection law
firm Hagens Berman.
The firm wishes to speak with consumers who were forced to pay
high interest rates on credit lines, despite paying the owed amount
back on time.
You can contact the Hagens Berman legal team via email at
CapitalOneTB@hbsslaw.com. Consumers can also contact the firm by
calling (206) 623-7292. Additional information is available at
www.hbsslaw.com/capitalonetb.
The case, filed on June 9, 2011,
in the United States District Court for the Eastern District of
Michigan, asks the court to
declare Capital One's acts a breach of contract and award
plaintiffs damages for losses incurred because of the program.
About Hagens Berman
Seattle-based Hagens Berman
Sobol Shapiro LLP is one of the top class-action law firms in the
nation, with offices in Boston,
Chicago, Colorado Springs,
Los Angeles, Minneapolis, New
York, Phoenix, San Francisco and Washington, D.C. Founded in 1993, we represent
plaintiffs in class actions and multi-state, large-scale litigation
that seek to protect the rights of investors, consumers, workers
and whistleblowers. More information about the firm is available at
www.hbsslaw.com.
Contacts
Firmani + Associates Inc.
Mark Firmani, 206-443-9357
mark@firmani.com
SOURCE Hagens Berman Sobol Shapiro LLP