A new class action lawsuit accuses one of the largest banks in the U.S. of failing to properly investigate and handle fraud claims while wrongfully denying customers millions of dollars in refunds.
The proposed lawsuit, filed by Leah Walton on behalf of herself and others in a similar situation, says the plaintiff’s problems started when her Capital One debit card was stolen from her car in March 2023.
After the card was stolen, Walton said $1,500 disappeared from her account.
The California woman immediately notified Capital One, but was essentially ignored by the bank, according to the lawsuit.
“Immediately after learning that her debit card had been stolen from her car along with other personal items, Plaintiff alerted Capital One to the loss and filed a fraud claim with substantial factual evidence showing nearly $1,500 in unauthorized charges.
Capital One offered her “provisional credit” for the fraudulent amount. Later, Capital One summarily dismissed the plaintiff’s claim on the grounds that it ‘found no fault,’ and closed the plaintiff’s checking account.”
Walton’s lawyers say she was not given any opportunity to challenge the bank’s decision, nor was she given any explanation as to how the bank concluded there was no “error” in the transactions.
Instead, Walton was “mechanically rejected” by Capital One without a reasonable investigation and subsequently sent denial letters “without any factual findings or documentation from the purported investigation.”
Despite promising that consumers will not be liable for their losses if their card is lost or stolen if they report it in a timely manner, Capital One “is not living up to its promises,” the lawsuit says.
The lawsuit alleges that Capital One violated the Electronic Fund Transfer Act (EFTA), the federal law that protects consumers regarding debit cards, ATMs and bank automatic withdrawals.
“Capital One is failing to comply with its legal obligations by failing to provide a written explanation of its denials.
Instead, Capital One routinely denies claims without explanation, stating only the conclusion in a form email that it “found no fault.”
Walton and her attorneys are currently requesting a jury trial over the incident.
Capital One is the ninth largest chartered commercial bank in the U.S., with $478.28 billion in assets under management as of March 31, 2024.
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