Nonprofit Debt Counselor Was Capital One Puppet: Suit

Law360, New York (October 19, 2011, 2:02 PM EDT) -- Capital One Bank NA and InCharge Debt Solutions were struck with a class action Monday in Virginia alleging that while InCharge marketed itself as an independent, nonprofit credit counselor, it was actually a for-profit puppet controlled by Capital One.

InCharge claimed it would negotiate with Capital One on behalf of consumers in debt, but in reality it accepted whatever interest-rate reductions and fee waivers the bank told it to, according to a complaint filed by Georgia resident Lori King in federal court.

The credit counselor also...
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