Capital One to pay $210 million in fines, consumer refunds

http://money.cnn.com/2012/07/18/pf/capital-one-refund/index.htm

NEW YORK (CNNMoney) -- In its first public enforcement action, the Consumer Financial Protection Bureau announced it is fining Capital One Bank for pressuring and misleading two million customers into buying additional products when they opened their credit card accounts.
The bank will refund roughly $140 million to customers and pay an additional $25 million penalty to the CFPB for using deceptive marketing tactics, the government's consumer watchdog said Wednesday.
Capital One (COF, Fortune 500) will also pay the Office of the Comptroller of the Currency a $35 million penalty and refund an additional $10 million to customers for unfair billing practices. The two actions combined bring the bank's total payout to $210 million.
The CFPB said that Capital One, one of the nation's largest credit card lenders, pressured and misled consumers into paying for "add-on products" like payment protection and credit monitoring when they activated their credit cards.

CAPITAL ONE IS REPORTING MY CREDIT CARD # 5178-----3897 TO 3 CREDIT BUREAUS VIOLATING FCRA §603(d(2). They lost lawsuit against me and there exists no written, oral, electronic evidence of any enforceable credit card agreement between me and Capital One.

Capital one bank filed Lawsuit against me in Dec 2008 to collect a disputed credit card debt. Challenged lawsuit and demanded Credit Card Agreement. Privacy notices, Electronic evidence or any other instruments bearing my signature which proves that I have agreed to their Terms and Conditions, complete billing statements and host of other documents. Capital One failed to produce those documents in court and sought dismissal of the case in April 2009.  

SUMMARY OF COURT ACTIVITIES

CASE DISMISSAL PRAYER FILED BY CAPITAL ONE

In fact, I have never signed or electronically agreed to Capital One USA Credit Card Agreement and Privacy Notices. Demanded from them in court and also through my communication with Capital One to provide any such documents if they have. Capital One’s Executive response committee  responded on May 11, 2010 that “the account was opened on Nov 27, 2002, after we received application via telephone or Internet. As such a paper application is not available". Please watch the words "telephone or Internt". Tehey are not even sure how I got Credit Card from them. Below is pasted letter from Capital One Executive response committee.

 Capital One is supposed to provide and disclose full details of Credit Card Agreement, Privacy Notices before establishing account with consumer. But I got Credit Card from them anyway  without any signed or agreed Agreement and used it occasionally for credit transaction. It is not the evidence that there was some sort of agreement between the parties. Accordingly mere use of a credit card is not an “enforceable Card Agreement” between the parties.

Absence of any Credit Card Agreement, my Capital One Credit Card dealings can be legally interpreted as “TRANSACTION AND EXPERIENCE” between consumer (me) and the person (capital one). Federal Credit Reporting act clearly explains what is EXCLUDED from Credit Report in Section 603 (d) (2) (i):--

§ 603. Definitions; rules of construction [15 U.S.C. § 1681a]

Exclusions. Except as provided in paragraph (3), the term "consumer report" does
not include (A) subject to section 624, any (i) report containing information solely as to transactions or experiences between the consumer and the person making the report;

In any financial transaction, credit granter is obligated by law to disclose fully "Terms and Conditions" to the consumer.  I have researched Capital One USA Credit Card Agreement (pasted below) and found out that they can only report transaction to Credit Bureaus if consumer AGREES to their terms. This is stated on Page 4 of Card Agreement pasted below.  Note the words " as provided in our Privacy notices".  Capital one never provided me any Privacy notices which is a part of Credit Card Agreement.

Credit Card Agreement for Consumer Cards in Capital One® Bank (USA), N.A.

Credit Reports.
"We may provide information about you and the Account to consumer (credit) reporting agencies and others as provided in our Privacy Notices. Information we provide might appear on your and the Authorize Users’ credit reports. This could include negative information if you do not comply with the terms of this Agreement"

 Just to force me to pay and negotiate  disputed account with them, they are reporting my Credit Card to Bureaus when they are not legally authorized.  Capital one was greedy in the first place establishing credit account without proper paperwork and disclosing key loan terms. Yes, I loaned money from capital One and also paid them time to time with interest. Capital one should recognize that all credit transactions in the world are simply not reportable to credit bureaus.   

In fact, Capital One illegally established “Trade Line” with TransUnion, Equifax, Experian to report my UN-REPORTABLE account and violated “Subscriber Agreement” with them. Capital One-either you produce note or remove my account from Credit Bureaus.

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