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A recent class action lawsuit accuses Capital One of forcing their customers to pay unfair credit card interest on transactions that have been paid off.
Plaintiff Susan Dress argues that, like many other credit card companies, Capital One provides their credit card customers with a “grace period” to pay off their balances.
However, Capital One allegedly differs from other credit card providers because the company will reportedly rescind the interest-free grace period if consumers fail to pay off their balance in full in a prior month.
“Capital One’s credit card contracts affirm these common sense understandings, but Capital One’s actual practice does not. Capital One customers who pay off purchases, in full, in a given month are often shocked to find that they are still charged interest on their next month’s bill for those same purchases,” Dress argues in her Capital One class action lawsuit.
This policy is allegedly misleading and at odds with Capital One’s credit card contracts. The credit card agreement between Capital One and their customers reportedly states: “we will not charge you interest on any new transactions […] if you paid the total balance across all Segments of your Account in full by the due date on your Statement each month.”
Based on these statements, Dress claims that she and other reasonable consumers would be correct in assuming that they would not be charged interest for new purchases if those purchases were paid off by the next due date.
Instead, the Capital One class action lawsuit states that the company uses “murky rules only known to itself” to dictate interest policies.
If a consumer makes a $100 purchase and pays $99 of it by the next billing due date, one would expect that this remaining balance would be subject to interest.
However, Capital One charges interest on the remaining balance as well as all future purchases, even if the balance is paid off before the next billing due date, the Capital One class action states.
“But Capital One never informs consumers of this,” Dress claims. “In fact, Capital One affirmatively represents the opposite—that it will not charge interest on new transactions if a consumer pays their statement in full for the month by the due date, and that it will only charge interest on ‘unpaid amounts.’”
The Capital One interest class action lawsuit accuses Capital One of breach of contract, breach of the covenant of good faith and fair dealing, and violation of Massachusetts consumer protection laws.
Dress seeks to represent a Class of Capital One credit card account holders who were charged interest on amounts that were paid in full before the due date. She also seeks to represent a subclass of the same consumers in Massachusetts.
The Capital One interest class action lawsuit seeks restitution, actual damages, punitive damages, pre-judgement interest, court costs, and attorneys’ fees.
Dress and the proposed Class are represented by Patrick J. Sheehan of Whatley Kallas LLP; Nicholas A. Migliaccio and Jason S. Rathod of Migliaccio & Rathod LLP; Jeffrey Kaliel and Sophia Gold of Kaliel PLLC; and Kristi C. Kelly, Andrew J. Guzzo, and Casey S. Nash of Kelly & Crandall PLC.
The Capital One Credit Card Interest Class Action Lawsuit is Dress v. Capital One Bank (USA) NA, Case No. 4:18-cv-40064, in the U.S. District Court for the District of Massachusetts.
Join a Free Credit Card Interest Class Action Lawsuit Investigation
If you were charged credit card interest months after paying off the balance of your credit card, you may qualify to join this credit card interest class action lawsuit investigation.
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1,325 thoughts onCapital One Class Action Says Credit Card Interest is Unfair
I have had this several times
Sign me up for this lawsuit as well. Spent an hour talking to customer service and a supervisor who failed to give a reasonable reason why the charge was applied. I literally took the cards out of my wallet and stuck them in the drawer. If I see a charge on there again next month after not charging or using it for a month and a half, I will literally file a lawsuit.
I would like to be added to this lawsuit, paid my CC off last month way before the due date and I was just charged with interest.
I would like to be added to this class action as well! Paid my credit card off in full last month and hit with interest fee this month.
Please add me to the class action law against capital one.
Please, add me to the class action lawsuit against Capital one, too. I have a Capital one Venture credit card and paid off my balance in full on due day, and they charged me $88.97 interest in next pay period. They told me I needed to pay in full two consecutive time to avoid interest charge. It doesn’t make sense to me, payoff means $0 balance, it doesn’t create interest. I also have another Capital one credit card (Capital one Silver), they did the same thing (charged me interest after pay off ), but when I called customer service, they admitted they were wrong and waived the interest charge. What Capital one Venture card is doing is wrong and unfair, deceived consumer and steals money from us.
At a time when people are struggling to get by and make ends meet, selfish and greedy people are taking advantage: credit cards companies and insurance companies are the worst! Companies are also charging high fees just for someone to call and pay their bills. It’s time to take a stand against these evil and greedy people. There needs to be a major overhaul with insurance premiums and deductibles and interest rates and fees with credit card companies. And with the way companies treat consumers. If the government won’t regulate them consumers need to take action and boycott them. If we don’t invest in them, they can’t make money. We may have to sacrifice some things we want or need. It will be worth it in a long run. We have to take back our power from our creditors. I strongly believe some of them are practicing usury. Usury is not a good thing. Over the years, I have made some stupid-spending mistakes with credit cards like a lot of people. But, I have learned from those mistakes. I can’t change the past but I can make better choices in the present for a better future. We can’t keep doing the same things and get different results. We have to take back the power that we have given to credit card companies, insurance companies, etc. I’m currently advocating against the use of credit cards. These company are charging outrageous interest rates and fees and very little goes towards principal. This makes it hard for consumers to pay off these debts. Now is the time to boycott these companies that we(the users of credit cards) have made rich and stop investing in them. If we boycott them, they can’t make money. We are the ones who empower these companies. If they’re not willing to be fair and offer lower interest rates and fees to all consumers, especially, those who pay their bills on time, they should be boycotted. People are struggling enough and these are rich and selfish people who are taking advantage of the common people and working class. Also, cautious should be use for warranty companies that charge high deductibles and high premiums. It’s sad when you are in a situation and have to depend on your insurance company that you have paid out money for years and never had to use, and when you do need their help you can’t get the help you need. Instead of covering your needs, you have to come up with money that you don’t have. Plus, they’re constantly going up on rates and fees every year. Consumers are giving too much money to insurance companies and credit card companies. These companies are charging outrages interest rates and fees and premiums. Let take back the power and the wealth we are giving them. If they can’t be fair to us, let’s boycott them. A boycott must go in effect until things change for consumers: the common and working-class people.
I’ve been with capital for five years. After the recent pandemic I was forced to ask for a settlement agreement, which they agreed to. The agreement consisted of three different payment amounts. I was told that the two first payments can be any amount just as long as the third and final payment was for the full remaining balance to equal to the total of settlement agreement. Made the first issue before the due date. Before the second payment was due I was notified there had been a change in my credit report. Upon checking …. It was a charge added to my credit report from capital one. I also noticed the first payment I made towards the settlement was not reported to the credit bureau in even though it was over 30 days ago. Called capital one and was told that interest still applied and will report as such to all bureaus however… they apologized for not reporting the payment advised me to file a dispute to correct. When it was time to make the second payment I called to advise them I was going to make a lessor payment amount as that is what the previous rep had advise I would be able to do. Well … no one wanted to grant that but I made a lessor amount anyway with the rep on the phone and asked for calls to be reviewed. The rep put in the request for call to be reviewed and a manager to call me in a three days. Said the payment I made in good faith would go toward the remaining balance for that second payment. Needless to say no one was on the same page and they blamed me saying I missed understood the rep. They gave me till the end of the day to make that payment. By the time I called later that night, I was told by a senior manager that they will make an exception to keep the settlement but that they could add the $40 I paid in good faith toward the balance owed for that month. I was told … it was a random payment. I was told the agreement was for the date it was for and the rep completely disregarded the fact that I had spoken to a rep that set it up so that I can make the rest of the payment after the account was received. Unreal… they are a fraud honestly. Now the account will charge of they said because they didn’t want to review.
I would love to be added to any suit regarding this. I too was a victim of their misrepresentation.
My longevity with capital one means nothing to that company. They do not care about me as a customer. I’m in debt to capital one, but I have cancelled my credit cards with capital one. I will never do business with them again. I have never been late and I always pay my bills. Capital one charges me a very high interest rate. Plus, if I pay more than the minimum payment capital one applies more money towards interest. For example, if I’m normally charged 69.00 in interest with a minimum payment of 125.00. I may get charged 110.00 if I paid 200.00. This is the world’s system (AKA: the devil’s system). These people are greedy and selfish. They charged way more in interest and fees than what they ought to. I have strongly considered boycotting these credit card companies. I truly regret getting credit cards. There definitely needs to be a major overhaul with credit card companies and insurance companies.
I hate I ever did business with Capital one. I paid all of my cards off and they’ve come back with some bogus interest charges. I don’t owe Capital One anything. I’m totally in agreement with everyone else who has been cheated and wronged by capital one. I will definitely add my name to any class-action lawsuit against this company. Their billing practices are unjust.
Please add me to the lawsuit. When I pay off my bill and it comes out of the bank, they hold on to my money until my new charges go through so I go over my limit and then they hike my interest rates.
Add me. I always paid off my balance and got another statement for the interest fee. So tired of it we need to get our money back!!
add me please
I paid off a balance in June before the end of the statement due date deadline. The next statement I had interest only charges. Unbelievable.
I paid off a,”$4063”balance in full, as per the online data, in June 2019. No communications about the bogus fraudulent interest I was charged was indicated. Me, being a loyal customer for decades, was blindsided and astonished at this big bank bad behavior.
Additionally, my fico credit score dropped 100+ points. Dec 2019 Capital One closed my bank account without informing me of the unfair int. charges=$153.81.
Please add me. Too.