Class Action Claims Capital One Improperly Closed Accounts and Voided Rewards
Capital One has been hit with a class action lawsuit accusing the bank of unlawfully revoking credit card rewards that customers had already earned and were previously promised. The legal action, filed by plaintiffs NTech Consulting and Nikhil Navkal, alleges that cardholders are being denied access to their accumulated rewards “pursuant to an undisclosed rewards cancellation policy” used during account closures.
The complaint highlights a pattern where the bank allegedly penalizes customers who have done nothing wrong. “Pursuant to its rewards cancellation policy, Capital One frequently cancels credit card accounts and rewards earned on those accounts when the cardholder is not at fault, such as when the credit card has been subject to fraud or unauthorized use,” the Capital One class action says.
The plaintiffs want to represent anyone for whom Capital One closed a credit card account when the cardholder was not in default, and who thereafter did not receive from Capital One payment or redemptions of all the credit card rewards earned. The suit also specifies several subclasses, including New York consumers, Spark Cash Plus cardholders, and those whose accounts were terminated because “Capital One has observed activity on one of more of your Capital One accounts that is inconsistent with typical customer account usage.”
“Even if plaintiffs were in default, which they were not, Capital One was not contractually allowed to unilaterally forfeit their earned rewards,” the Capital One class action says.
In the lawsuit, NTech Consulting and Navkal claim Capital One is guilty of breach of contract and unjust enrichment and in violation of New York General Business Law and the Equal Credit Opportunity Act, including Regulation B.
HT: TopClassActions
