Consumer complaint received 2020-01-04
Company: CAPITAL ONE FINANCIAL CORPORATION
State: CA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement
Sub-issue: Credit card company isn't resolving a dispute about a purchase on your statement

Complaint:
I am asking the Consumer Financial Protection Bureau to take all actions necessary to compel Capital One Bank to comply with applicable laws regarding fair credit practices and U.S. Codes of regulations with respect to consumer assertion of claims and defenses. 

The facts involved in the case I am bringing against Capital One are as follows : 1. ) Violation of terms of service and breach of contact : Capital Ones agreement with its cardholders provides that amounts charged by a merchant to a cardholder will be charged back to the merchant in the event that the merchant violates a  specific provision of the agreement with the cardholder. In this case, I charged the amount of XXXX to my Capital One Mastercard on XX/XX/2019 for lodging accommodations in the State of Oregon. Subsequent to making this charge, I learned that there was a state of civil unrest in the State of Oregon at the time I was due to travel ( several of these incidents of civil unrest were well documented in the national media ). Please see attached documentation provided to Capital One as an addendum to information provided on XX/XX/2019, which included the following links to national media websites substantiating the presence of civil unrest in the state of Oregon : https : XXXX https :  XXXX https : XXXX The merchant in question, XXXX, explains in its terms of service that these very circumstances allow for cancellations of any reservation, and that this policy supercedes any and all other cancellation policies. Specifically, the language reads as follows : Cancellation policies may be superseded by the Guest Refund Policy, extenuating circumstances, or cancellations by XXXX for any other reason permitted under the Terms of Service. 
This policy may be read here : https : //XXXX Further explanation and clarification is found in XXXX terms of service, which explicitly state that cancellations are allowed outside the guest refund policy for reasons including : civil unrest in the area that the guest is traveling from, traveling to, or that the hosts home is located in. Examples include : Violence '' These terms may be referenced here : https : XXXX Note that these terms of service also state Theres no required documentation for these circumstances. 

Accordingly, these charges should have been reversed by the merchant in accordance with the merchants policies. That failing, Capital One should have charged the amount in question back to the merchant in accordance with Capital Ones policies and terms of service as noted above. In fact, Capital Ones representatives assured me, on a recorded line, that the amount would be fully credited to my account, and that there would be no problem taking this action, as it was clear and evident that the services had not been received. Documentation of these facts may be found by referencing the following Capital One case number : XXXX number : XXXX. 

On XX/XX/2019, after noticing that the amount of XXXX continued to remain on my account, I contacted Capital One. After spending almost XXXX hours dealing with various representatives in the dispute resolution department, I was instructed by customer service representative XXXX ( ID # XXXX she refused to provide her last name ) to validate two specific points via research and documentation : i. ) The merchants policies regarding civil unrest and/or violence in the region being travelled to, ii ) The actual presence of civil unrest and/or violence in the region. 

Despite my having provided this documentation ( see attached ), which conclusively proved the merchant had a policy regarding civil unrest and/or violence that superseded any other cancellation policies as well as substantiated the presence of civil unrest in the region being travelled to, Capital One took no action.

2. ) Violation of U.S. Codes of Regulations with Respect to Consumer Assertion of Claims and Defenses : When Capital One failed to take appropriate action, they were sent a
four p
age, certified letter on XX/XX/2019 ( see attached correspondence dated XX/XX/2019 ) asserting claims and defenses and detailing the reasons for doing so. This letter was received by Capital One on XX/XX/2019 ( see certified return receipt dated XX/XX/2019 ). Although the letter allowed Captial One up to 60 days in which to take proper action ( well beyond that provided by law ), Capital One not only did not do so, they did not even bother to respond to the letter. In the interim, Capital One continued, and continues, to allow the balance in question ( XXXX ) to remain, and continues to charge interest on this amount. Capital One continues to violate applicable laws, specifically U.S. Code of Regulations 1666 ( a-j ) as well as U.S. Code of Regulations 226.12, which allows consumers of credit card services to assert claims and defenses, as well as in continuing to charge interest on the amount in dispute.The failure of an organization as large as Capital One to take any meaningful action, or follow the law, or even bother to respond to what is clearly a very important matter, underscores and reinforces a point I made in my XX/XX/2019 letter : Capital Ones dispute resolution department is woefully incompetent. Sadly, this is increasingly apparent. 

In consideration of these breaches and violations, please take the appropriate action against Capital One and its agents, and, in anticipation of action I will be taking against Capital One in conjunction with other enforcement and regulatory agencies, including the State of California Office of the Attorney General, please keep me apprised of your progress. 

If you require any additional documentation, need further clarification, or for any reason need to speak with me directly, please do not hesitate to contact me at : XXXX. I thank you for your efforts in ensuring that companies doing business in consumer finance operate both legally and ethically, and I look forward to working with you in this matter. 

Very Truly Yours, XXXX XXXX

Company response to consumer: Closed with monetary relief