Friday, August 14, 2009

Lawsuit Filed Against Capital One Bank Regarding Increase In Credit Card Interest Rates

Lawsuit claims that Capital One engages in unfair and bad faith business practices with respect to its unilateral increases in the interest rates charged to consumer credit card accounts.

Atlanta, Ga. (PRWEB) August 14, 2009 -- Atlanta attorney E. Adam Webb has filed a class action lawsuit against Capital One Bank alleging that Capital One has operated in bad faith by unilaterally increasing the interest rates on consumer credit card accounts. Capital One has raised rates even for consumers who have always maintained their good standing by satisfying all account requirements, such as making all required payments and not exceeding credit limits. Furthermore, Capital One has taken such action even against those whose credit scores and general creditworthiness have not declined. The suit claims that Capital One, which is headquartered in McLean, Virginia, has engaged in improper and unfair practices in order to increase the revenue it generates via the interest rates imposed on consumer credit card accounts. The case, styled Lemond v. Capital One Bank (USA), N.A., is pending in the United States District Court for the Northern District of Georgia and has been assigned Case Number 1:09-CV-01582-RWS.

According to the suit, Capital One raised the interest rates associated with credit card accounts by over nine percent even though accounts were in good standing and had been at all relevant times. Although Capital One did not purport to impose these new higher rates on balances accrued prior to its notice to consumers, the effect is the same because of the Bank's practice of crediting all payments to the portion of the account balance with the lowest interest rate. In addition, the suit alleges that Capital One's offer that customers could reject this interest rate increase by closing their credit card accounts is inadequate because, as Capital One is well aware, closing a credit line has a negative impact on a consumer's credit score. A lower credit score can cost a consumer thousands of dollars over the term of a home mortgage or other loan. As a result, customers have been forced to accept Capital One's unilateral rate increases.

The Plaintiffs allege that Capital One is liable for all damages that have resulted from its bad faith and improper conduct, to include the differential in interest payments paid by the class members to Capital One.

If you wish to discuss this action or have any questions concerning this press release, please contact E. Adam Webb., Esq. by e-mail at contact(at)webbllc(dot)com or by calling (770) 444-9325.

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[Via Legal / Law]


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