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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
Please add me, something felt illegal and while disputing the charges o find this lawsuit. So unfair!!
Recently I was charged $122.75 interest on charges from Capital one credit card after I spoke to their cust. serv person for the payoff date she erroniously told me was the end of Aug. When I was charged the int. on July 11, I called and the person tried waiving the int. after speaking with him but said the “system” wouldn’t allow. Note, these int. charges are on items returned as well. Then the following month I am charged $25.90 on a balance that was paid in full except for the new charges even though there was to be a grace period. Capital one refuses to credit these interest charges on the returned items and are enriching themselves by charging interest on their interest charges at the same time they say they are trying to help ease the covid 19 burden by offering the interest free period. I would have paid the full amount sooner had “THEIR” customer service person not given me erronious info. The followup cust. serv. person agrees that I shouldn’t have been charged the interest but says he can’t waive the charge but instead a new interest charge followed up on the next statement as he tried more than once he said to do it and he gave me his level 2 supervisor to take care of it without any charges being reversed and all this while they state they were helping customers because of Covid 19!
I can see many suits against this company in their future,Horrible Business Practices,1st”Pymts made after 8pm if due that day will be hit with late fee,Or if your pymt date lands on Sundays “Late Fee”Because they don’t process pymts on Sunday,If pymt made before 12am on date due,it’s not late!!You assholes put 8pm cutoff just to screw hard working people out even more,Shameful!!I will be on every class action lawsuit that is filed against your company,God’s Watching,Can’t wait the day you answer to him for such practices!!
Add me to this lawsuit,I’ve been screwed by capital one for years.i make a pymt on due date,say its the 18th,I pay on the “18th “but because it’s Sunday I get a late fee!!!WTF
Desde mayo del 2021 me empesaron a cobrar 29$ por cargos de compra nunca antes me paso con esta targeta y tenia mas de 1 año ahora cobran todos los meses 35 $ ni se cuando subieron mi targeta es la Platinum llamo todos los meses 3 vese para reportar esto y me disen que estan en investigacion no la uso y me cobran no entiendo nada y si me pueden ayudar con otra targeta que me esta pasando peor mejor es la care credit no se como voy a arreglar las faltas de estas companias
They raised my rate to 27% I pay more than my minimum due and they keep racking up the interest!!! How can I be added? Thank you!
Add me! Paid my account in full using their system and the amount they said was balance. Next month I get charged $49 in interest that they claim was for the time between the bill being sent out and actually paying.
Is this still going on? Ive been a capital one holder for over 10 years and yes i have been charged interest charges after paying off my statements
My payment did t go through because of a holiday so it came out a day late. Did not realize this would be how Capital One operated. So they stole my entire payment and put it toward interest instead and still demanded the monthly payment. Over saying it was supposedly one day late but technically it wasn’t. It just did not post on the date I paid it which was three days before the due date! Horrible!!!
Add me to this suit! How do I join. There isn’t an option available. I paid off my credit cards and they charged me interest on an account that has a zero balance!!! This is crazy. Never had this happen before.
How can i get add
Add me/ I have four capital one credit cards and yes the interest rate are not fare