Major Hassle for Capital One

Minnesota Attorney General Mike Hatch sued Capital One in state court on December 30, 2004, alleging false advertising. Capital One's TV and mail advertising prominently features "low and fixed" interest rates as an inducement for consumers to switch balances from other credit cards. In fact, however, Capital One reserves the right to raise rates at any time and also will increase rates for late payments and negative credit reports. Consequently, the supposed "fixed rates" are in reality not fixed. The disclaimers are in tiny type not readily discernible by the consumer.

"It's very clear that these ads are designed for the sole purpose of getting people to believe that the rate is fixed and it can't change. It's consumer fraud." —Mike Hatch

The suit describes in detail Capital One's TV ads which compare itself favorably to supposed predatory competitors who raise rates unpredictably. Capital One, Attorney General Hatch alleges, does the same thing. He seeks an injunction and restitution.

Comments

[Vivien Young]

Capital One run my credit without my approval. The church "Lighthouse" applicated for a line of credit but, Capital One use my personal information and the church was turn down. I did not give them my personal information so were did they get this inforamtion. In fact this was to be a business line of credit and a personal line of credit.

[Nora Hunt]

Capital One is the king of fees! Read the fine print before making any commitment. They even charged me a $15.00 fee for an express package delivery on an auto loan package! Beware!

[keish]

capital one charges large inrerest rate fees even though they close accounts. my account was closed three years ago and since then my charges have doubled. I ended a balance of approx $968.00 and now it's up to $1650.