Capital One: We Should All Get Rid of It

A M A Z I N G.






Debtor strikes back at credit card company

By Sam Wood
Fri, Dec. 10, 2010
Philadelphia Inquirier


Patrice Perry's dispute with Capital One had been escalating. Someone called her family and her coworkers, trying to get her to pay. She hired an attorney, but the credit card company kept sending bills.

And then, the big blow.

"Please send your payment of $286,651,237 in the enclosed envelope," read the statement dated August 2009.

What's in your wallet, indeed.

Perry, a hotel clerk, reacted with shock and panic, according to a lawsuit filed Wednesday in Common Pleas Court.

"Essentially, the company told my client that if you don't do what we say, we're going to terrorize you economically," said Perry's attorney, Craig Kimmel. "It's certainly not a laughing matter when a creditor threatens to sue."

Capital One, based in Salt Lake City, did not respond Friday to several calls and e-mails requesting comment.

The fuss began in May 2009 when the credit card company, known for its commercials featuring Vikings and Visigoths, sent Perry a letter seeking $3,845 to pay off $4,807 on her account.

Perry's former lawyer sent the company a letter instructing it to direct all correspondence to him, the suit states. But Perry said Capital One persisted. Employees began calling her at home, calling her friends, calling her family, according to the suit.

In July 2009, Perry received a letter seeking $3,579 on an account of $4,695. The next month, another letter arrived, demanding $4,820.

Then on Aug. 25, 2009, the nine-figure bill showed up in her mailbox: "You have not paid this amount as we agreed," according to the bill. It threatened to destroy her credit history if the amount was not paid off immediately.

Kimmel said the $286 million figure was no random mistake.

The suit claims Capital One used "terroristic debt collection methods" that violated state debt collection laws and used unfair or deceptive acts or practices to create confusion and misunderstanding.

"We are seeking the very amount of money they say she owes as actual damages," Kimmel said. "So, we want $286 million. I'm as serious as they were when they sent that letter."

Kimmel said credit card companies too often think they are immune from cardholders they've put under the gun. He said he hoped the suit sent a warning to Capital One.

"Maybe some of those problems will get addressed," Kimmel said. "I'm just trying to get it to the attention of those who would consider this outrageous."

Perry, he said, has not received any more letters from Capital One.

"Maybe now they believe that silence is better," he said.





 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
credit cards

Obama to hold town hall meeting on credit cards

Fri May 8, 2009 5:10pm EDT
By Jeff Mason

WASHINGTON, May 8 (Reuters) - U.S. President Barack Obama will hold a town hall meeting next week in New Mexico to promote congressional efforts to reform credit card practices, the White House said on Friday.

Banks such as Bank of America Corp (BAC.N)>, JPMorgan Chase & Co (JPM.N), Citigroup Inc (C.N) and Capital One Financial Corp (COF.N) face a new set of rules issued by the Federal Reserve last year aimed at reining in abusive credit card practices.

The rules are to be implemented by July 2010, a date some lawmakers and consumer groups complain is too far away to help struggling consumers.

U.S. lawmakers are trying to codify those rules in legislation and send it to Obama this month to sign into law. Legislative efforts are aimed at stopping credit card companies from imposing certain late fees, restricting retroactive rate increases, as well as other questionable billing practices and marketing to minors.

The Senate is expected to begin debating on Monday on legislation. The House of Representatives overwhelmingly approved its own legislation last month.

White House spokesman Robert Gibbs told reporters on Friday that Obama will focus on legislation and urge lawmakers to "get something done on an issue of tremendous importance to middle class families.

"For many people credit cards provide an opportunity to finance purchases," Gibbs said. "But we think there's a more equitable way to do that and I think that those reforms are on their way through Congress."

In 2007, Americans used an estimated 694.4 million credit cards with Visa Inc (V.N), MasterCard Inc (MA.N), American Express Co (AXP.N) and Discover Financial Services (DFS.N) logos, according to industry data.

The American Bankers Association trade group, which represents many of the biggest credit card issuers, have warned that legislation could reduce the amount of credit available and make it more expensive for card users going forward.

"We're in a difficult lending environment," Ken Clayton, the ABA's senior vice president for card policy, said during a conference call with reporters. (Editing by Andre Grenon)





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