Capital One Settles U.S. Trustee Suit Over Bad Claims

Law360, New York (October 3, 2008, 12:00 AM EDT) -- Capital One Bank (U.S.A.) NA entered into a settlement Thursday to resolve allegations by a U.S. trustee that the bank improperly filed thousands of claims in bankruptcy cases, collecting $340,000 in credit card debts that courts had officially discharged.

According to the settlement, which still requires approval by the U.S. Bankruptcy Court for the District of Massachusetts, an independent auditor will inspect approximately 650,000 Capital One customer accounts and return any money the bank received from some 5,600 erroneous claims made on debtors or their Chapter...
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