Capital One To Pay $10M To Settle Suit Over APR Hikes

Law360, New York (September 13, 2012, 11:20 PM EDT) -- Capital One Bank USA NA on Thursday agreed to pay $10 million to a proposed class of credit card holders to resolve claims that it promoted its credit card services as offering low fixed annual percentage rates and then later abruptly increased them.

In a proposed settlement memorandum filed in California federal court, lead plaintiff Raquel Rubio said Capital One will pay the full amount, which represents close to 40 percent of more than $26 million in damages. The $10 million deal also includes attorneys’ fees...
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