Press release from Business Wire
Hagens Berman LLP Announces Class-Action Lawsuit against Capital One
Friday, June 10, 2011
SEATTLE (Business Wire) -- Hagens Berman, a nationwide class-action law firm, today announced that it has filed a lawsuit alleging Capital One (NYSE:COF) misrepresented its “transfer balance” program, resulting in higher-than-expected interest rates for consumers.
The case, filed June 9, 2011, in the United States District Court for the Eastern District of Michigan, alleges that Capital One deceived cardholders by claiming that a cash advance obtained through the company's transfer balance program would include a 0 percent Annual Percentage Rate (“APR”) for one year. The company also allegedly promised that credit balances on regular monthly purchases (“purchase balances”) would incur no interest as long as the balance was paid within 25 days.
However, according to the complaint, cardholders who took advantage of the transfer balance program were charged interest rates exceeding 13 percent on their purchase balances, even if the balance was paid on time, because payments were applied to the transfer balance rather than to the purchase balance.
“If proven, these gimmicks would make it impossible for consumers to predict what they will owe when using their card,” said Steve Berman, managing partner of Hagens Berman. “They made their payments on time and did everything right, but they were charged extremely high rates regardless.”
Hagens Berman is interested in talking to other consumers who took advantage of Capital One's transfer balance program, and as a result, were forced to pay high interest rates on a balance paid back on time.
Consumers can contact the Hagens Berman legal team via email at CapitalOneTB@hbsslaw.com. Consumers can also contact the firm by calling 206-623-7292. Additional information is available at www.hbsslaw.com/capitalonetb.
The lawsuit alleges that Capital One's actions constitute a breach of contract and the duty of good faith and fair dealing, in addition to violations of the Virginia Consumer Protection Act and the Michigan Consumer Protection Act. The case also argues that Capital One received unjust enrichment through the alleged scheme.
The case asks the court to declare Capital One's acts a breach of contract and award plaintiffs damages.
About Hagens Berman
Seattle-based Hagens Berman Sobol Shapiro LLP is one of the top class-action law firms in the nation, with offices in Boston, Chicago, Colorado Springs, Los Angeles, Minneapolis, New York, Phoenix, San Francisco and Washington, D.C. Founded in 1993, we represent plaintiffs in class actions and multi-state, large-scale litigation that seek to protect the rights of investors, consumers, workers and whistleblowers. More information about the firm is available at www.hbsslaw.com.
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