Hagens Berman Files Lawsuit Against Capital One Over Transfer Balance Program

SAN FRANCISCO, Dec. 8, 2011 /PRNewswire/ -- A group of consumers have filed a class-action lawsuit against credit-card giant Capital One (NYSE: COF) claiming the company lures consumers into transferring large balances with promises of interest-free money, but engineer the offer's details to allow the company to charge interest rates exceeding 13 percent.

The case alleges that Capital One deceived cardholders by claiming that a cash advance obtained through the company's transfer balance program would include a zero percent annual percentage rate, or APR, for one year. At the same time, the company allegedly promised that consumers' credit balances through credit cards and other lines of credit covering regular purchases would not gain 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 for purchases made through credit cards and other lines of credit, even if the balance was paid on time.

The lawsuit claims that Capital One strategically and improperly applied payments to the transfer balance rather than to consumers' credit, also known as the purchase balance. This caused many consumers to be charged for the remaining balance at interest rates exceeding 13 percent, even if they paid off their purchase balance on time.

Consumers who used Capital One's program are part of a proposed class identified by the lawsuit filed by consumer protection law firm Hagens Berman.

The firm wishes to speak with consumers who were forced to pay high interest rates on credit lines, despite paying the owed amount back on time.

You can contact the Hagens Berman legal team via email at [e-mail]. Consumers can also contact the firm by calling [phone]. Additional information is available at www.hbsslaw.com/capitalonetb.

The case, filed on June 9, 2011, in the United States District Court for the Eastern District of Michigan, asks the court to declare Capital One's acts a breach of contract and award plaintiffs damages for losses incurred because of the program.

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.

Contacts

Firmani + Associates Inc.

Mark Firmani, 206-443-9357

[e-mail]

SOURCE Hagens Berman Sobol Shapiro LLP

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