Capital One class action alleges company falsely advertised credit cards

Capital One pre-approval class action lawsuit overview:

• Who: Plaintiff Glenn Liou filed a class action lawsuit against Capital One Financial Corp.
• Why: Capital One allegedly utilizes a bait-and-switch scheme that tricks consumers into applying for a credit card and potentially damaging their credit.
• Where: The Capital One class action lawsuit was filed in New Jersey federal court.

Capital One Financial Corp. utilizes a “bait-and-switch tactic” to entice customers into applying for Capital One credit cards, according to a class action lawsuit filed Oct. 27 in New Jersey federal court.

Plaintiff Glenn Liou says he was looking for credit card information online when he found an advertisement for a Capital One Walmart Card. He clicked a link that said “See if You’re Preapproved” and was subsequently informed that applying for pre-approval would pose “no risk to your credit score,” the Capital One class action lawsuit says.

After he pressed the “Apply Now” button and completed the application process, he received a notification that his Capital One credit card application was denied. He also found Capital One had conducted a hard inquiry and soft run of his credit report.

Capital One class action says bait-and-switch scam harms consumers

Liou says he did not intend to apply for a Capital One credit card. If he had known Capital One would pull his credit report by simply applying for pre-approval, he says he would not have applied for pre-approval.

The class action lawsuit alleges Liou’s credit score dropped by approximately seven to 10 points after he submitted his application for pre-approval.

Liou says he was the victim of a bait-and-switch scheme in which Capital One seemingly offered him an opportunity to find out if he was pre-approved for a credit card but in reality he was tricked into completing a credit card application that adversely affected his credit.

This alleged bait-and-switch scheme violates the Fair Credit Reporting Act (FCRA), the New Jersey Fair Credit Reporting Act, the New Jersey Consumer Fraud Act, and New Jersey’s Truth-in-Consumer Contract, Warranty, and Notice Act, according to the Capital One class action lawsuit.

Liou filed the Capital One class action lawsuit on behalf of himself and a proposed class of consumers in the United States who applied for pre-approval for a Capital One credit card and experienced a hard pull on their credit as a result.

Earlier this year, Capital One was hit with a class action lawsuit alleging it mismanaged its retirement savings plan, allegedly causing its members to lose millions of dollars.

Have you experienced a drop in your credit score after filling out a pre-approval application for Capital One credit cards? Tell us your story in the comments!

c is represented by Jonathan Shub and Kevin Laukaitis of Shub Law Firm LLC, Spencer Sheehan of Sheehan & Associates PC and James Chung of Law Office of James Chung.

The Capital One credit cards class action lawsuit is Glenn Liou v. Capital One Financial Corp., Case No. 3:22-cv-06299, in the U.S. District Court for the District of New Jersey.

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