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A class action lawsuit filed on January 18 against Capital One Bank alleges that the credit card giant uses adverse information in customers’ credit reports against them without disclosing to those customers what the information is or where it came from.
The complaint asserts that this information is required to be provided to consumers by the federal Equal Credit Opportunity Act (ECOA), and state versions of the same.
“Disclosure of the specific reasons for the adverse action, including a true representation regarding the source of the adverse information, is vital so that credit reporting errors that originate at the source can be corrected, and so the person knows the specific person who furnished information about them to the creditor,” the class action contends.
Plaintiff Albert Douglas says he applied for a home equity loan from Capital One in the summer of 2016 in the amount of $45,000. Douglas states that he is a disabled veteran who is retired and on a fixed income.
Douglas claims that he was pre-approved for the loan after providing his retirement income information and giving permission to Capital One to access his credit reports. However in July of 2016, Douglas says he received a “Statement of Credit Denial, Termination or Change” informing him that his application was being denied.
That notice told Douglas that he was being denied because his credit reports disclosed that he had gone through bankruptcy, but Douglas claims this information is incorrect; he has not filed for bankruptcy in the past 10 years.
“Further, Experian and Equifax did not list a bankruptcy in his credit file and the reports that he had seen before receiving this notice,” according to the complaint.
Douglas states that he contacted Capital One about the error, and an employee confirmed the error but said that the loan was being denied because of information received from third party Lexis Nexis. Douglas wrote a letter to Capital One to try get more details, but to date the bank has not responded.
Douglas continued to track down the reason for his loan denial by contacting Lexis Nexis. That company allegedly told him they may obtain bankruptcy information from a separate third party, Accurint.
When Douglas received his report from Accurint, it stated that he had gone through a bankruptcy in 2005 and 2006. Based on this information, the complaint asserts that Capital One uses information from Accurint without properly informing customers of this data source, in violation of the ECOA.
The credit reporting lawsuit requests certification of a Class of all persons in the U.S. who have applied for a loan with Capital One in the past five years, who the company provided an “adverse action notice” without mentioning Accurint.
The complaint also requests a subclass of Virginia residents with the same criteria, alleging violations of Virginia state law. The class action seeks restitution, statutory damages of $10,000 per Class Member, and an injunction requiring Capital One to send correct adverse action notices in the future.
Douglas is represented by Kristy C. Kelly and Andrew J. Guzzo of Kelly & Crandall PLC and Leonard A. Bennett, Craig C. Marchiando and Elizabeth Hanes of Consumer Litigation Associates PC.
The Capital One Bank Credit Reporting Class Action Lawsuit is Albert Douglas v. Capital One Bank NA, Case No. 3:17-cv-00043, in the U.S. District Court for the Eastern District of Virginia, Richmond Division.
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24 thoughts onCapital One Class Action Says Bank Violates Credit Report Laws
Capital One Closed my 2 credit cards without any given reason. I have contacted them numerous times to find a reason behind why the closed my accounts and every time I contact them they inform me that they can not give me one. My credit score has dropped from 700 to below 600, due to the available credit across all accounts. I have read that many people have had the same issue. Time for a class action lawsuit?
capital one is evil. They almost caused me to lose my house twice saying I owed them monies that was forgiven in bankruptcy. Thankfully I kept my paperwork and was able to prove that I owed them nothing. dwv
Is anyone suing Capital One for sending junk mail constantly after being asked to stop. I have contacted them several times asking them to stop sending me junk mail. They continue anyway. I want to sue them.
I reported Cap one several years ago for charging me fees on a card that was not only paid off but cancelled. I had a second card with a small balance that I cancelled also and made steady payments to pay it off but the debt didnt go down it went up. And now three years later at 30.00 per month on a 500.00 debt I owe them over 600.00? I called on 08-19-2017 and asked why the minimum payment went up. they said the debt went up. I said I cancelled the contract and the card three years ago. they said I had membership fees and increased the interest because of the increase in debt. Sounds like the Mob to me. Told the young girl on the phone they were not going to see another penney to me and she could tell her boss to F…off. Im retired, live outside of the country and know a hit man.
Due to fraud at Christmas there was an error on their part on my account by Janruary it was resolved. However they refunded the scam money twice! They then started reporting I was late on my credit file and other creditors thought I was not going to pay or something so they lowered my credit limits because of capital one. I can prove all. I had perfect credit until this. They claim no fraud when I dispute with credit bureaus. Yet I have emails and letters from them and chase bank saying there is fraud
Is it possible to join this class. I just found out in attempt to refinance my property that Capital One placed a lien on my property in 2008 for a credit card debt that was paid and account closed in 1998. In 2002, I had to have my credit report corrected due to the same debt which reappeared after four years. How do the get away with resurrecting this issue and with erroneous information at that.
They had me paying for a car that I was driving at lower payment arrangements and the car was listed as repossessed.. When I went to trade in the car 9 months later, the dealership notified me. So Capital One offered me a payoff of $5,000. I refused and bought a new car. Now they want to sue me for $12,000 through a third party.
These people robbed me. I had called them when the card was around 2400.00, it’s on their own recording and told them we thought something was wrong. The card was going up and up and we were not using it. They said, “where do you live?”. When I told them we lived where we are, they tried to justify the charges, leaving the card open. When it finally got to 10,000 we realized and called them. The employee said, Oh, I do see where you called and asked to have the card stopped because of strange charges. THEY NEVER STOPPED IT NOW they are accusing me of charges.
What is wrong with this run away company accusing, charging and attacking society when they are creating the problem. There own employe said months after, “Oh, I did see where you called and reported fraud”. Then, why am I responsible for this card of 10000? They keep calling harassing, etc. I’ve never had a credit card like this in my life and never will have any credit card again. Awful mess.
apital Ine was a Creditor. Although they were included in the bankruptcy, they continued to report me as having late payments. No other creditors did this.
I filed for Chapter 7 in 2014 and Capital Ine was a Creditor. Although they were included in the bankruptcy, they continued to report me as having late payments. No other creditors did this.