Capital One Seeks Dismissal Of Suit Over Forfeited Credit Card Rewards
By CU Today Staff —
RICHMOND, Va.—Capital One N.A. has asked a Virginia federal judge to dismiss a proposed class action accusing the bank of improperly wiping out billions of dollars in earned credit card rewards after closing customers’ accounts, arguing its agreements expressly informed cardholders that it could close accounts at any time, Law360 reported.
Capital One filed its dismissal motion June 15 in the U.S. District Court for the Eastern District of Virginia. The case, assigned to U.S. District Judge Roderick C. Young, was brought by NTech Consulting LLC and Nikhil Navkal and is titled NTech Consulting LLC et al. v. Capital One N.A., court records show.
The plaintiffs allege Capital One closed their Spark Cash Plus account even though it was not in default and then denied them approximately $8,000 in spending bonuses, $2,437 in purchase rewards and a $150 annual-fee reimbursement. The complaint argues Capital One’s rewards terms permitted forfeiture when customers closed their own accounts, but did not authorize the bank to erase rewards when it initiated the closure.
The lawsuit seeks to represent cardholders nationwide whose accounts were closed by Capital One while they were not in default and who subsequently lost cash-back rewards or miles. It asserts breach-of-contract, unjust-enrichment, consumer-protection and Equal Credit Opportunity Act claims, while Capital One maintains the challenged account closures and rewards cancellations were permitted by the agreements governing the cards.
Originally reported by CU Today.