Wednesday, January 18, 2012

WVAG secures $13.5 million settlement from Capital One

West Virginia Attorney General Darryl McGraw announced a settlement yesterday in his 2010 litigation against credit card giant Capital One.

Capital One agrees to provide $3 million in debt forgiveness to West Virginia consumers, $9.5 million to the State of West Virginia to be used for financial relief for West Virginia consumers, and $1 million to the Attorney General’s office for consumer education and restitution.

This case resolves claims related to practices utilized from 2001 through 2005 involving the sale of payment protection and the Credit Recovery Services line of business. Capital One denies liability.

Attorney General McGraw is pleased with the results of the settlement. "This was a hard-fought battle, resulting in a lot of money for the State of West Virginia. Capital One is to be commended for changing the practices that prompted the State’s action."

"We're pleased to have worked with Attorney General McGraw to resolve this matter which dates back to a time prior to 2006," said Tatiana Stead, spokesperson for Capital One. "We've since made significant improvements and look forward to continuing to serve our card customers in West Virginia."

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