West Virginia Attorney General Suing Capital One Bank and Four other related Debt Collection Agencies

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[Best Syndication News] The Attorney General Darrell McGraw filed a lawsuit against Capital One Bank (USA) N.A. along with four other companies because of tactics of debt collection that was deceptive as well as conducting unlawful practices. The legal filing was in the Circuit Court of Mason County, West Virgina.

The other companies named in the lawsuit are Capital One Services, LLC, Capital One Services II, LLC, Capital One Services III, LLC, and COSI Receivables Management which are corporations that provide debt collection services for credit cards that were issued by Capital One Bank.

In the complaint filed there were numerous violations of the West Virginia consumer protection laws. According to the lawsuit, they are claiming that Capital One would solicit customers with the disguise of new credit, when it really was a debt repayment plan. The new credit offered was $1.00 extra than the outstanding debt that they were required to transfer the entire account balance to a new credit card. In order to see an increase in the amount of credit line they would have to pay off the existing balance first.


When the balance was transferred from the old card to the new credit card it gave Capital One the ability to charge interest, late fees, and over-the-limit fees it otherwise wouldn't have been able to on the old debt. By renewing the debts it reset the applicable statue of limitations period. By not raising the customers credit limits on several low-limit credit credit cards customers would face expensive over-the-limit fees because they refused to increase the credit limit. The Attorney General also said that they were selling services to card holders that couldn't benefit from the services being offered, and would try to collect for credit card accounts that never were made active.

Attorney General McGraw stated, "Capital One’s practice of offering nominal extension of credit, if and only if, the consumer agreed to pay off a debt too old to be sued on is tantamount to loan sharking."

If you live in the state of West Virginia and would like to file a complaint, please contact the Attorney General’s Consumer Protection Division. Call 1-800-368-8808, write to P.O. Box 1789, Charleston, WV 25326-1789, or visit his website at www.wvago.gov. Here is the link for the complaint form for Capital One to file with the Attorney General of West Virginia http://www.wvago.gov/pdf/capitolonecomplaint.pdf

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