Capital One Bank Will Refund More Than $2 Million Improperly Collected from Consumers in Bankruptcy

The U.S. Trustee Program (USTP) announced yesterday that Capital One Bank N.A. will refund approximately $2.35 million to consumers in bankruptcy (or their bankruptcy estates) for amounts received by Capital One as a result of erroneous claims it filed in bankruptcy cases for debts that previously had been discharged, according to a USTP release yesterday. Capital One also will reimburse attorneys' fees and costs to consumers and bankruptcy trustees who filed legal objections to Capital One's erroneous claims. In October 2008, the USTP entered a settlement agreement with Capital One to resolve allegations that the company attempted to collect on debts that previously had been discharged in bankruptcy. At that time, the USTP alleged that Capital One had filed approximately 5,600 erroneous claims in bankruptcy cases, and the company acknowledged that it had received approximately $340,000 to which it was not entitled.

http://www.justice.gov/ust/eo/public_affairs/press/docs/2011/pr20110118.htm

Contact:Jane Limprecht, Public Information Officer

Executive Office for U.S. Trustees
(202) 305-7411