Capital One has agreed to pay $10.5 million to resolve claims that they violated the terms of bankruptcy discharges in relation to consumer credit card accounts.
The settlement benefits consumers who had a Capital One credit card account, whose debt related to that account was charged off and sold to a debt buyer after Jan. 1, 2008, and who (after the debt sale) had their debt discharged as part of their bankruptcy through March 22, 2016.
Plaintiff Orrin Anderson filed a lawsuit against Capital One in bankruptcy court in July 2015, claiming that the lender failed to comply with the term of his bankruptcy discharge.
Anderson alleged that Capital One failed to update relevant credit information on sold accounts and provide that information to credit reporting agencies after the accounts were discharged in bankruptcy.
The plaintiff reportedly filed for bankruptcy relief in January 2014 and secured a discharge of his debt in May 2014. In June 2015, Anderson moved to reopen his bankruptcy and later filed his class action complaint against Capital One.
According to settlement documents, the parties have engaged in “extensive discovery,” including the exchange of written requests, sworn testimony, and almost 300,000 pages of documentation. Capital One has agreed to settle the claims against them but does not admit any wrongdoing.
If Class Members made a payment on their sold Capital One credit card account after they received a discharge from bankruptcy court and did not receive a refund, they may be entitled to a full refund of that amount through the Capital One settlement. These consumers should complete a reimbursement Claim Form. Other consumers who believe they are entitled to monetary compensation can complete a distribution Claim Form online.
As part of the settlement, Capital One has also asked TransUnion, Equifax, and Experian to delete records of Class Members’ relevant Capital One credit card accounts.
If Class Members still see this information on their credit report, they can submit a written request by Sept. 11, 2019 to have this information removed.
In order to receive payment under the settlement, Class Members need to file a valid claim online or through the mail by Sept. 11, 2019. The deadline for exclusion and objection was Aug. 9, 2019. The final approval hearing was scheduled for Sept. 11, 2019.