Mech
Joined: 06 Jun 2001
Posts: 8237
Location: THE 4th REICH USA |
Cerdit Card company gets smacked
 Fri Dec 31, 2004 6:14 pm
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Capital One Sued Over Credit Card Ads
15 minutes ago
NEW YORK (Reuters) - Minnesota's attorney general has sued credit card issuer Capital One Financial Corp., 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.
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Personally..I think all these ***holes involved should ALL go directly to PRISON. |
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