Court Slaps Capital One’s Hand for Disobeying Bankruptcy Law
The decision to file for bankruptcy is a very difficult one. And for the over 2 million people who filed for Chapter 7 or Chapter 13 last year, many find that this is a stressful time in their lives as well.
Added to that stress, over 15,000 consumers found that after filing for bankruptcy, their Capital One nightmare was just beginning when the credit card giant broke bankruptcy laws by filing “erroneous claims” demanding payment for balances that were discharged in a bankruptcy court. Over 800 of these consumers have filed a suit against Capital One seeking legal action.
As a result, a court-appointed auditor has been appointed to thoroughly review the bankruptcy files from Capital One. In response, Capital One has agreed to enhance its record-keeping practices.
Capital One is the 10th-largest U.S. bank by assets. The company has almost 1,000 branches. ING Group is proposing a $9 billion acquisition of Capital One. Capital One was forced to write off over $2.9 billion in uncollected funds last year, a typical practice for the credit card company and other lenders.
When considering filing Chapter 7 or 13, hiring a bankruptcy attorney who is thorough and knows the laws is crucial to ensure there are no future consequences.The decision to file for bankruptcy is a very difficult one. And for the over 2 million people who filed for Chapter 7 or Chapter 13 last year, many find that this is a stressful time in their lives as well.
Added to that stress, over 15,000 consumers found that after filing for bankruptcy, their Capital One nightmare was just beginning when the credit card giant broke bankruptcy laws by filing “erroneous claims” demanding payment for balances that were discharged in a bankruptcy court. Over 800 of these consumers have filed a suit against Capital One seeking legal action.
As a result, a court-appointed auditor has been appointed to thoroughly review the bankruptcy files from Capital One. In response, Capital One has agreed to enhance its record-keeping practices.
Capital One is the 10th-largest U.S. bank by assets. The company has almost 1,000 branches. ING Group is proposing a $9 billion acquisition of Capital One. Capital One was forced to write off over $2.9 billion in uncollected funds last year, a typical practice for the credit card company and other lenders.
When considering filing Chapter 7 or 13, hiring a bankruptcy attorney who is thorough and knows the laws is crucial to ensure there are no future consequences.
