This class action, against Capital One Bank (USA), NA, is based on the federal Equal Credit Opportunity Act (ECOA) and the Massachusetts Consumer Credit Reporting Act (MCCRA). The complaint alleges that Capital One does not provide the specific reasons for adverse actions taken with respect to credit transactions, and that it closes credit card accounts with providing contact information for the consumer reporting agency that provided the information that led to the closing.
The Mass. Gen. Laws Ann. 93 § 62 Class is all persons living in Massachusetts who received an adverse action notice for a Capital One credit account for personal, household, or family purposes based on information from a consumer reporting agency where Capital One did not provide in ten business days a written notice of the identity and contact information of the consumer reporting agency issuing the report that Capital One relied on in taking the adverse action, from October 20, 2020 through the pendency of this case.
When adverse action is taken on consumer credit, the ECOA requires that the credit company give the consumer specific reasons for that action. The complaint alleges that this “ensur[es] that credit is made available with fairness, impartiality, and without discrimination, and that consumers are informed and educated in their use of credit.”
Similarly, in Massachusetts, when a credit company terminates a consumer account or reduces its credit line, the company must, within ten business days, provide the consumer with a notice that contains the identity of and contact information for the credit reporting agency that provided the information on which the closing or reduction was based.
On or around February 14, 2018, the plaintiff in this case, Joseph Sullivan, was approved for a credit card account with Capital One. On or around April 8, 2019, he was approved for another one, and on or around June 18, 2021, he was approved for a third one. The complaint alleges that all the accounts were in good standing as of September 1, 2021.
On or around September 14, 2021, Capital One wrote him three letters closing all three accounts. The only reason it gave for the closing was, “Capital One has discovered adverse past or present legal action involving an individual or entity associated with the account.” The complaint therefore alleges, “The accounts were closed without providing justifiable reasons and without permitting [Sullivan] sufficient information about the source of the information and in so doing, denied [Sullivan] of his due process right to correct possible errors.”
On December 2, Sullivan wrote to Capital One trying to get from it the specific information required by federal and state law. While Capital One responded to Sullivan, it did not provide the information. According to the complaint, Sullivan has reviewed his credit report and other sources to try to find the information on which Capital One based its actions, but he has been unable to find it.
Article Type: LawsuitTopic: Loans
Most Recent Case Event
Capital One Adverse Actions Without Sufficient Information Massachusetts Complaint
October 20, 2022
This class action, against Capital One Bank (USA), NA, is based on the federal Equal Credit Opportunity Act (ECOA) and the Massachusetts Consumer Credit Reporting Act (MCCRA). The complaint alleges that Capital One does not provide the specific reasons for adverse actions taken with respect to credit transactions, and that it closes credit card accounts with providing contact information for the consumer reporting agency that provided the information that led to the closing.
Capital One Adverse Actions Without Sufficient Information Massachusetts ComplaintCase Event History
Capital One Adverse Actions Without Sufficient Information Massachusetts Complaint
October 20, 2022
This class action, against Capital One Bank (USA), NA, is based on the federal Equal Credit Opportunity Act (ECOA) and the Massachusetts Consumer Credit Reporting Act (MCCRA). The complaint alleges that Capital One does not provide the specific reasons for adverse actions taken with respect to credit transactions, and that it closes credit card accounts with providing contact information for the consumer reporting agency that provided the information that led to the closing.
Capital One Adverse Actions Without Sufficient Information Massachusetts Complaint