W.Va. AG, Capital One settle credit card lawsuit
CHARLESTON, W.Va.—Capitol One Bank will forgive $3 million in credit card debt owed by West Virginia to settle a lawsuit filed by the state.
The lawsuit filed by Attorney General Darrell McGraw's office claimed Capital One misled consumers about fees and terms of preapproved credit cards.
McGraw said Tuesday that the settlement resolves claims involving the company's credit card practices prior to Jan. 1, 2006. The attorney general's office began investigating in 2005.
McGraw says in a news release that Capital One also agreed to pay $9.5 million to the state and $1 million to his office.
Capital One spokeswoman Tatiana Stead says the company has made significant improvements and looks forward to continuing to serve card customers in West Virginia.