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
An appeal is what made the Capital One class action lawsuit come back to life. Capital One was told by a 3 judge panel that it can’t say the rates are “fixed” if they’re subject to change. Rubio received, as outlined by Reuters, a credit card offer within 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 might be raised. ”At any time” Rubio was allowed to “amend or change” the agreement she had from capital one as outlined by the form she received the month after receiving the offer which said “subject to change” on it. 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
