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January 1, 2005 12:52 AM

Capital One Sued Over 'Deceptive' Ads


Excerpt: Minnesota's attorney general has sued credit card issuer Capital One Financial Corp., accusing the U.S. credit card issuer of falsely advertising low rates and defrauding consumers.

　 　

Minnesota's attorney general has sued credit card issuer Capital One Financial Corp., accusing the U.S. credit card issuer of falsely advertising low rates and defrauding consumers.

Attorney General Mike Hatch said Capital One nearly quadruples the rate it charges some card customers who trigger a "penalty" rate by paying a bill a day late or defaulting in other ways, according to a complaint filed on Thursday in a Ramsey County District Court in Minnesota and posted on Hatch's Web site.

A Capital One spokeswoman said the company "believes it has acted properly and in full compliance with the law," and is cooperating with the attorney general to resolve the matter.

According to the complaint, cardholders who receive an initial 4.99 percent interest rate and later default may see their rate skyrocket to 19.8 percent, even though Capital One advertised that the lower rate was "fixed."

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Read all 26 posts in the same category of Credit/Credit Card:

Frequent-Flier Cards Delay Fee Collection - Dec 27, 2004
It Pays To Surf For Auto Loans Online - Dec 27, 2004
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American Express, Citi Ink Deal - Dec 26, 2004
Citigroup Says It Will Issue American Express Cards - Dec 17, 2004
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Credit Card Loyalty Put to the Switch Test - Dec 09, 2004
Credit Cards Offer Safety In Buying Online - Dec 06, 2004
How to Deal With Your Debts - Dec 04, 2004
FACTA & Your Credit - Dec 03, 2004
Warning On Internet Loans - Dec 02, 2004
High Court Sets Truth In Lending Limit - Dec 02, 2004
Free Credit Reports May Reveal Surprises - Dec 01, 2004
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A Generation Weighed Down By Debt - Nov 28, 2004
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Free Credit Report Details Announced - Nov 25, 2004
One Late Payment Can Hit Finances Hard - Nov 25, 2004
Free Credit Reports Are On The Way - Nov 23, 2004
Card Debt - Nov 22, 2004
Soaring Interest Compounds Credit Card Pain for Millions - Nov 20, 2004
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