Attorney General reaches settlement with Capital One - Business, Government Legal News from throughout WV

WV Attorney General reaches settlement with Capital One

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Capital One will provide $9.5 million to West Virginia for financial relief and $3 million in debt as a result of a recent settlement, Attorney General Darrell McGraw's office announced Jan. 17.

In addition to this amount, Capital One will pay $1 million to McGraw's office for consumer education and restitution.

McGraw's office began an investigation into Capital One's credit practices in 2005. McGraw took issue with practices utilized from 2001 through 2005, including the sale of payment protection and the credit recovery service line of business. The news release noted Capital One denied liability.

McGraw first took his court fight to Mason County Circuit Court in 2010 against Capital One Bank, Capital One Service LLC, Capital One Services II LLC, Capital One Services III LLC, and COSI Receivables Management Inc.

The legal battle traveled through two circuit courts and the West Virginia Supreme Court of Appeals before finally ending up in U.S. District Court for the Southern District of West Virginia.

"This was a hard fought battle, resulting in a lot of money for the state of West Virginia," McGraw said in the release. "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, spokeswoman 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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