Stop-Aging.org

Raising credit card interest rates on customers without telling them has gotten Capital One in trouble, again. A judge earlier this year thought the case saying Capital One has broken the Truth in Lending act was not worth his time and dismissed it. But the 9th Circuit reinstated the Capital one class action lawsuit July 22. Now, it is illegal because of new credit card rules to raise interest rates arbitrarily.

Capital One class action lawsuit

The Capital One suit says the company has deceptive lending because they raise interest rates without "clear and conspicuous" warning first which makes them unfair competition. Raquel Rubio was a consumer who had been with the company for years and never gave them difficulties and, according to Courthouse News Service, then saw her interest nearly double suddenly.

Capital One reserves the right to deceive you

Rubio began the lawsuit against capital one since they broke the Truth in Lending Act and were unfair competition. Capital one does state they can change the rates and fees which is why the first judge dismissed the suit. Capital One is able to "amend or change any part of your Agreement, including periodic rates and other charges, or add or remove requirements ... at any time."

Capital One buries deception in fine print

The Capital One class action lawsuit was revived on appeal. "Fixed" can't be used by Capital One if the rates change as outlined by a three judge panel. Reuters reports that Rubio had accepted a February 2004 mail solicitation from Capital One that offered a credit card with a 6.99 percent rate on balance transfers and purchases. The solicitation incorporated a required table that said in 10-point type the rate could rise if Rubio missed a payment, exceeded her credit limit or had a payment returned. It also said "subject to change" while the agreement Rubio ended up with the next month said she could "amend or change any part" of the agreement "at any time". Capital One raised Rubio's rate in August 2007 to 15.99 percent though she had not triggered any of the conditions warranting a hike. Resources Courthouse News Service courthousenews.com/2010/07/22/29062.htm Reuters reuters.com/article/idUSN2116752120100721