Capital One Uses False Contracts To Collect Debt, …

1 News, cases, companies, firmsAdvanced Search DocumentsComplaintCase InformationCase TitleWHEELER v. CAPITALONEBANK (USA), et alCourtPennsylvania EasternNature of SuitOther Statutes: Consumer CreditCase Number2:12-cv-05848 JudgeMITCHELL S. GOLDBERGDate FiledOctober 15, 2012 RelatedSectionsBankingClass ActionCommercial ContractsPennsylvaniaPrivacyGovernment AgenciesConsumer Financial ProtectionBureauOffice of the Comptroller of theCurrencyArticlesLaw Firm Ducks Class Cert. InSuit Over Capital One CollectionsDiscover, Firm Lacked EvidenceTo Pursue Debts, Suit SaysShare us on: Capital One uses False Contracts To Collect debt , SuitSaysBy Keith GoldbergLaw360, New York (October 16, 2012, 4:58 PM ET) -- Capital One Bank USA NA was hit with a putative classaction in Pennsylvania federal court on Friday that claimsthe bank knowingly used False and inapplicable credit cardagreements to pursue debt collections against suit filed in Pennsylvania's Eastern District claims thatCapital One is directing third-party collection attorneys topursue actions against cardholders using customeragreements that were created years after the credit cardswere originally issued, a violation of the Fair DebtCollection practices Act, as well as state consumerprotection laws.

2 "It is clearly impossible for an original contract dated afterthe date of a credit card issuance to act as the governingagreement between the parties, except as an amendmentor modification of the original contract ," the complaint said."Yet, as this complaint will substantiate, Capital One hascommitted to writing and has disseminated to its nationalcollection attorney base its instruction and authorization toall of its collection attorneys throughout the United Statesof America to use its False Contracts as the governingcontracts for credit card holders who are the subject ofcollection efforts. Named plaintiff Robert Wheeler applied for and wasissued a Capital One credit card in 2004, according to August, W heeler was sued in Pennsylvania state court by Nudelman Klemm & GolubPC, a New Jersey law firm representing Capital One that sought collection of an allegeddefaulted credit card payment in 2009.

3 Capital One had originally sued Wheeler in smallclaims court, but Wheeler won, according to the , the customer agreement submitted by the firm that it accused Wheeler ofbreaching was dated the year 2010. Both the customer agreement and the state courtcomplaint indicate that it is not an amendment or modification to any prior agreement, thecomplaint , Nudelman, Klemm & Golub are trying to Collect a debt that allegedly resultedfrom a credit card issued in 2004 and defaulted in 2009 by using a customer agreementissued in 2010, Wheeler's complaint an idea for a story?Email the inside scoop butprefer to stay out of the spotlight?Email Abandoned ResidenceForeclosures In new Illinois law going into effect June 1, 2013 provides clarity for dealing with inventories ofabandoned properties and statutory immunity forsecuring such properties prior to foreclosure.

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7 That shows that thebank and its collection attorneys systematically use False documentation to support allegedcontractual obligations asserted against consumers they have sued in order to collectalleged debt , the complaint said."These wrongful collection activities are intended by the defendants to secure collectionfrom those whom the United States Congress has defined as the 'least sophisticatedconsumer,'" the complaint suit, which also names Nudelman Klemm & Golub, seeks to establish a class ofCapital One cardholders who have been the subject of debt collection suits in which thebank has used the customer agreements as One has faced plenty of recent scrutiny over its card practices . In July, the bankagreed to pay $210 million to settle deceptive credit care marketing allegations made bythe Consumer Financial Protection Bureau and the Office of the Comptroller of a pair of consent decrees, Capital One agreed to reimburse up to millioncustomers a total of $150 million for deceptive marketing of so-called add-ons to creditcards as well as unfair billing practices .

8 All but $10 million of the $150 million total will go to2 million consumers with low credit scores that were either pressured into purchasing orgiven False information regarding payment protection, credit monitoring and other add-onsto their top of the $150 million in restitution to customers, Capital One agreed to pay a $25million fine to the CFPB and a $35 million fine to the One is also facing multidistrict litigation accusing it of illegally manipulating debitcard transactions to Collect hundreds of millions of dollars in excessive overdraft fees, inviolation of its Contracts and state consumer protection representative for Capital One couldn't immediately be reached for comment is represented by Stuart A.

9 Eisenberg and Carol B. McCullough of McCulloughEisenberg information for the defendants wasn't immediately available case is Wheeler v. Capital One Bank USA NA et al., case number 2:12-cv-05848, inthe District Court for the Eastern District of reporting by Evan Weinberger. Editing by Katherine regular, open dialog at the senior-most levelsof the organization, and that aren t afraid to put thecontract aside and think about new and better ways toachieve individual and collective goals even if itmeans a complete restructuring of the relationship, sayGerald Quirk and David Wittenberg of Choate Hall &Stewart Faces $300M Arbitration OverFracking SecretsHalliburton Energy Services Inc.

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