Capital One ‘0% Balance Transfer Offer’ Class Action Lawsuit

However, unbeknownst to consumers, “once a cardholder accepts Capital One’s ‘0% interest’ balance transfer offer, Capital one unilaterally, and in breach of the cardholder agreement, eliminates the grace period and begins charging interest on all new purchases from the date of the balance transfer forward,” the Capital One balance transfer class action lawsuit says.

Capital One does not disclose that it will eliminate the grace period for cardholders and subject them to high interest charges, nor does it disclose that the only way for these cardholders to avoid interest charges on new purchases once they accept the 0% balance transfer offer is to pay the full amount of these purchases plus the full amount of the balance transfer — in the same month that the cardholder accepted the balance transfer, even though the promotional period on the 0% percent offer was for 6 or 12 months.

“Contrary to the simple ‘chance to save’ that Capital One represented the balance transfer would provide, and that cardholders paid for, many cardholders who accepted these offers found themselves worse off than they were beforehand,” the class action lawsuit says.

The Capital One balance transfer class action lawsuit is seeking restitution and compensatory and statutory damages for alleged breach of contract, breach of faith, unfair competition, and violations of the federal Credit Card Accountability, Responsibility and Disclosure Act (CARD Act) and the California Unfair Competition Law (UCL). It is also seeking an injunction barring Capital One from further deceptive marketing regarding its 0% balance transfer offer.

The Capital One 0% Balance Transfer Offer Class Action Lawsuit case is Priscilla Barton v. Capital One Bank, Case No. 12-cv-5412, U.S. District Court, Northern District of California.