Capital One is in trouble because they have once more raised credit interest rates without informing customers. A judge earlier this year thought the case saying Capital One has broken the Truth in Lending act was not worth his time and dismissed it. The 9th Circuit thought the lawsuit should be reinstated on July 22. Now you will find credit card rules making it illegal to raise credit card rates without informing consumers.
Capital One class action suit
The Capital One class action lawsuit accuses the credit card business of unfair competition and deceptive lending for raising credit card interest rates without giving consumers “clear and conspicuous” warnings. Raquel Rubio was a consumer who had been with the business for years and never gave them problems and, as outlined by Courthouse News Service, then saw her interest nearly double suddenly.
Capital One can lie
Rubio began the lawsuit against capital one since they broke the Truth in Lending Act and were unfair competition. Capital one does state they can change the rates and fees which is why the first judge dismissed the suit. Capital One can “amend or change any part of your Agreement, including periodic rates and other charges, or add or remove requirements … at any time.”
Capital One cheats with fine print
The Capital One class action suit was brought back with a simple appeal. ”Fixed” can’t be used by Capital One if the rates change as outlined by a three judge panel. Rubio received, according to Reuters, a credit card offer in the mail from Capital One with a 6.99 percent rate in February 2004. In 10 point type in this offer, it explained that under certain circumstances, the interest rate could possibly be raised. It also said “subject to change” when the agreement Rubio ended up with the next month said she could “amend or change any part” of the agreement “at any time”. Although none of the circumstances had happened, Rubio’s Capital One rate went in August 2007 to 15.99 percent.
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Courthouse News Service
courthousenews.com/2010/07/22/29062.htm
Reuters
reuters.com/article/idUSN2116752120100721
