A massive bank in the United States is facing a new class-action lawsuit for allegedly mishandling fraud claims and denying customers rightful reimbursement, costing them millions of dollars in losses.
The lawsuit, brought forth by Leah Walton on behalf of herself and others in a similar situation, details how Walton’s troubles began when her Capital One debit card was stolen from her car in March 2023. Following the theft, $1,500 disappeared from her account, prompting Walton to notify Capital One. However, the bank reportedly ignored her pleas for assistance.
Despite providing substantial evidence of unauthorized charges and receiving a provisional credit for the fraudulent amount, Capital One eventually rejected Walton’s claim, stating they found no error and closing her checking account without explanation. Walton’s legal team contends that she was denied the opportunity to challenge the decision and was provided with vague denial letters lacking any factual basis.
The lawsuit accuses Capital One of violating the Electronic Fund Transfer Act (EFTA) by failing to meet its obligations to consumers and denying claims without proper explanations. Despite their assurances that customers will not be held liable for losses due to theft or loss of their cards if reported promptly, Capital One allegedly fails to uphold this promise.
Walton and her lawyers are seeking a jury trial to address the incident. Capital One, which ranks as the ninth-largest commercial bank in the country with $478.28 billion in assets under management as of March 31, 2024, is now facing legal scrutiny over its handling of fraud claims.
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