Capital One sued as customers claim bank unlawfully seized earned rewards points and cashback
Capital One faces a class-action lawsuit for allegedly seizing earned rewards points and cashback from customers whose accounts were closed.Summary
Capital One is facing a new class action lawsuit filed on 7 May in the US District Court for the Eastern District of Virginia, accusing the bank of unlawfully cancelling customer credit card rewards after closing accounts. The plaintiffs, Nikhil Navkal and NTech Consulting LLC, claim that Capital One removed rewards from customers whose accounts were shut down, including cases involving fraud or unauthorised activity where cardholders were allegedly not at fault. The lawsuit argues that the rewards, which had already been earned through purchases and were protected under the bank's cardholder agreements, were reclaimed by Capital One, constituting a breach of contract, unjust enrichment, and violations of the Equal Credit Opportunity Act. The plaintiffs are seeking to represent a nationwide group of non-defaulting customers who lost rewards following account closures, with specific subclasses for New York customers and holders of the Spark Cash Plus business card.
(Source：The News International)