Posted on 12/31/2004 11:02:47 AM PST by Uncledave
NEW YORK (Reuters) - Minnesota's attorney general has sued credit card issuer Capital One Financial Corp. (NYSE:COF - news), accusing the big U.S. credit card issuer of falsely advertising low rates and defrauding consumers.
Attorney General Mike Hatch said Capital One nearly quadruples the rate it charges some card customers who trigger a "penalty" rate by paying a bill a day late or defaulting in other ways, according to a complaint filed on Thursday in a Ramsey County District Court in Minnesota and posted on Hatch's Web site.
A spokesperson for Capital One, based in McLean, Virginia, could not be immediately reached for comment. A spokeswoman told the Star Tribune newspaper of Minneapolis that the company "believes it has acted properly and in full compliance with the law," and is cooperating with the attorney general.
According to the complaint, cardholders who receive an initial 4.99 percent interest rate and later default may see their rate skyrocket to 19.8 percent, even though Capital One advertised that the lower rate was "fixed."
The lawsuit said Capital One's marketing violates state laws against false advertising, consumer fraud and deceptive trade practices. Minnesota is seeking restitution for cardholders, civil penalties, disgorgement of profits, and an injunction barring further wrongdoing.
Is the Minn AG running for re-election or some other office?
Couldn't happen to a better Company!
WARNING! WARNING! WARNING!
Having dealt with Capital One over my son's credit card (not late, not over limit) they rank right along side of Household Finance as companies not to ever do business with.
This guy is on some kind of drugs . If you default you are beat !!! Capital 1 has the best rates and you have the responsibility to make the payments as they come due . Another way to comfort the losers in our society who are fed pablum from the government . Time to purge our country of these pain in the a$$es .
I've dealt with Capital One. I hope they get what they have coming. They're a bunch of crooks.
I have cards from Household and Capitol One. I pay on time, and have absolutely no problems with either of them.
Their advertisements with all the "?Huns?" drive me friggin NUTS. What the he!! is the relationship between some broad buying something, a credit card and a Hun?
Another Hatch(et) job by Hatch. The man has never seen a pool of money he didn't want to swim around in.
APf
I wish you continued good luck.
The 'huns' are supposed to signify the high rates, which CO claims they don't have. That statement made, they decide to use the CO card to make the purchase, and it stops the 'huns' dead in their tracks.
After the 3rd viewing, it's become tedious advertising.
It's going to be very interesting when we go into a completely cashless society.
FMCDH(BITS)
Ever heard of two cycle billing? Discover does it. Thats where they charge you not only for the balance you have left at the end of the month but they also charge you for the average balance you had during the month. But hey, they give you 2% of your money back at the end of the year!
Yes, but the fine print usually reads just like those privacy notices on programs downloads and software envelopes
If the post office looses your payment, and delivers it a week late, do you get kicked up to the default rate?
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A friend of mine HAD, emphasis on past tense, Capitol One as a credit card and said they were one of the worst companies to have. On the other hand they have some funny commercials.
Yeah - and another thing: I have _yet_ to see a Viking berserker running around ANYWHERE!
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