Capital One Made ‘Illusory’ Promises to Refund Fees, Interest Amid Pandemic, Lawsuit Alleges

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A proposed class action alleges Capital One Financial Corporation’s assurances that it would offer assistance to struggling credit card customers during the COVID-19 pandemic were merely a “publicity play.”

The 19-page case alleges that despite Capital One’s public representations that it would exercise discretion to waive late fees and interest charges, among other assistance, amid the pandemic, the bank had no process for granting relief to customers and instead “place[d] profits over people” by routinely denying requests for help.

According to the suit, when customers contacted Capital One to request a waiver of late fees, deferment of payments, minimum payment assistance, or other types of relief advertised by the bank, they were refused.

The lawsuit claims Capital One’s public representations that it was “here to help” bolstered its public image and generated more business while allowing the bank to reap “enormous profits” at the expense of customers. As the case tells it, Capital One’s customer contracts allow the bank to charge late fees and interest on overdue balances at its own discretion. Thus, it was within Capital One’s power to waive or refund such fees as it saw fit, the suit says. 

In the face of public pressure amid the COVID-19 pandemic, Capital One promised that all of its credit card customers would be eligible for financial assistance, including the waiving of late fees and deferred payments, the case states. Per the suit, Capital One encouraged customers struggling financially amid the pandemic to “contact customer service for a solution,” and represented that its associates were “well-trained and well-prepared to serve our customers in times of financial stress or hardship.”

The plaintiff, a Capital One Platinum Mastercard holder, says she viewed the defendant’s public assurance that assistance was available and contacted the bank on several occasions after “a dramatic reduction in her work hours” made it difficult to keep up with her bills. Though the plaintiff followed Capital One’s instructions and requested a waiver of three late fees, three different representatives told her “there was nothing they could do” to help and denied her requests without further investigation, the case alleges.

“Despite Capital One’s widely publicized promise that ‘all customers’ would be eligible for relief, Capital One’s representatives told her that she was ‘ineligible’ for help because there was nothing that they could do,” the complaint states. “And despite Capital One’s oft-repeated claim that its representatives would ‘work’ with customers to come up with a ‘suitable solution,’ none of the representatives with whom she spoke made any effort to work with her.”

According to the case, Capital One had no process or program in place for granting its customers relief and merely made “illusory” promises of assistance in order to deceive consumers into believing they could have their fees waived or refunded amid the pandemic.

The plaintiff says she relied on Capital One’s assurances of financial assistance and would have used a different credit card had she known the bank would not honor its promises.

The lawsuit looks to represent Capital One credit card holders in the U.S. who, after March 23, 2020, requested assistance from the bank but were subsequently charged late fees or interest on unpaid balances.

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