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Date : May 19, 2024
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Capital One to Pay $2M to Settle Suit Accusing Bank of ‘Harassing Phone Calls’ to Debtors

Capital One to Pay $2M to Settle Suit Accusing Bank of ‘Harassing Phone Calls’ to Debtors

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A mobile phone. Courtesy Samsung

Capital One will pay $2 million to settle a consumer lawsuit alleging that the bank made “frequent or harassing phone calls” to California debtors, prosecutors announced Thursday.

The agreement, reached with no admission of wrongdoing on Capital One’s part, stems from a lawsuit filed by district attorney’s offices in San Diego, Riverside, Los Angeles and Santa Clara counties.

The complaint alleged that the company made excessive collection calls, some of which continued after consumers indicated they no longer wished to receive the calls or the calls were made to wrong numbers.

The San Diego County District Attorney’s Consumer Protection Unit investigated the complaints.

“The settlement in this case underscores the importance of companies abiding by the state and federal debt collection laws that protect California consumers,” San Diego County District Attorney Summer Stephan said in a statement.

The judgment was entered Wednesday in Los Angeles Superior Court and includes $1.45 million in civil penalties and $300,000 in investigative costs.

The bank also is required to pay $250,000 in restitution to a charitable trust fund to support additional consumer protection and implement policies and procedures to prevent such debt collections calls to state consumers.

The procedures include limiting the total number of calls to each debtor and honoring consumer requests for calls to stop.

– City News Service

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