Released: October 04, 2008

Capital One must repay $340,000 to bankrupt debtors

Source: Connie Prater, CreditCards.com

An auditor will review 650,000 Capital One credit card accounts to ensure that money improperly collected from people whose debts were already discharged in bankruptcy proceedings are returned.

In a settlement announced Oct. 2 by the U.S. Trustee Program, the U.S. Justice Department agency that oversees the bankruptcy courts, Capital One must repay $340,000 to credit card account holders. Under bankruptcy laws, credit card and other debts cannot be collected by creditors if they have been dismissed in bankruptcy proceedings.

Read Full Article: Capital One must repay $340,000 to bankrupt debtors