Quick Answer: The Capital One settlement is real, resulting in $13.5 million for West Virginia consumers through a 2012 agreement that resolved claims about credit card practices from 2001-2005. The settlement includes $3 million in debt forgiveness, $9.5 million for consumer financial relief, and $1 million for education programs.
West Virginia Attorney General Darrell McGraw announces a settlement his office reached with Capital One Bank (USA) N.A.; Capital One Service, LLC, a Delaware corporation; Capital One Services II, LLC; Capital One Services III, LLC; COSI Receivables Management, Inc. (collectively Capital One), to resolve claims involving credit card practices in place prior to January 1, 2006.
In 2005, the Attorney General’s office began an investigation into Capital One’s credit practices, which spawned a legal battle in two circuit courts, the West Virginia Supreme Court and the Southern District of West Virginia.
After the United States Supreme Court paved the way for the State of West Virginia to proceed against Capital One, the West Virginia Attorney General’s office filed an action in 2010 in Mason County, before the Honorable Judge David W. Nibert. The trial was to start on April 24, 2012.
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Capital One agrees to provide $3 million in debt forgiveness to West Virginia consumers, $9.5 million to the State of West Virginia to be used for financial relief for West Virginia consumers, and $1 million to the Attorney General’s office for consumer education and restitution.
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This case resolves claims related to practices utilized from 2001 through 2005 involving the sale of payment protection and the Credit Recovery Services line of business. Capital One denies liability.
Attorney General McGraw is pleased with the results of the settlement. “This was a hard-fought battle, resulting in a lot of money for the State of West Virginia. Capital One is to be commended for changing the practices that prompted the State’s action.”
“We’re pleased to have worked with Attorney General McGraw to resolve this matter which dates back to a time prior to 2006,” said Tatiana Stead, spokesperson for Capital One. “We’ve since made significant improvements and look forward to continuing to serve our card customers in West Virginia.”
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Only 3 million to consumers and almost 10.5 million to the state….justice was served but shouldn’t the consumers who were hurt see the majority of the settlement?
It’s one hell of a revenue generator for the state; with unbalanced settlements like this, one cant help but to ask who really benefited ?
You gotta feel for these consumers. They get victimized but the state gets the lion share of the money. Same thing goes for class action suits, except its the class lawyers who get the money. No wonder people don’t have much faith in our civil justice system. I guess the old saying you get about as much justice as you can afford is true…
Sad but true Fitz…
It sure is.