Consumer complaint received 2024-10-20
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: CAPITAL ONE FINANCIAL CORPORATION (IL)

To Whom It May Concern, I am writing to demand the immediate resolution of Capital Ones improper handling of my account, which was closed despite ongoing billing errors and securitized debts. This has led to unlawful collection practices. I demand restitution of the principal and interest collected and request that monthly payments be made directly to me as compensation. Should Capital One fail to comply with this demand, I will pursue arbitration based on our agreement and relevant legal protections.

1. Securitization of Debt and Improper Collections According to Capital Ones financial disclosures ( see Exhibit A ), the debt tied to my account was likely securitized and sold to investors. Once securitized, Capital One relinquished its right to collect payments directly from me, as ownership of the debt was transferred. However, Capital One has continued to collect payments from me despite no longer holding the debt. This action is in violation of the Holder in Due Course Rule and constitutes unjust enrichment, as Capital One has already been compensated through the securitization process. 
Based on Capital Ones 10-K filings, the company has profited substantially from the securitization of consumer debts, generating significant capital through these transactions. This profit was earned while Capital One continues to unlawfully collect direct payments from consumers like myself, which is not only unjust but also violates principles of fair debt collection and transparency.

In Heritage Bank v. Bruha, it was established that collecting payments on a debt that has been sold or securitized amounts to unjust enrichment, as the creditor can no longer collect from the consumer. Capital Ones continued collection efforts have caused financial harm, and I demand restitution of these payments.

2. Restitution of Principal and Interest As the account holder and holder in due course, I am entitled to the full restitution of all principal and interest collected unlawfully. Under the precedents set in Cain v. Midland Funding, LLC, any interest and principal collected on a securitized debt must be returned to the consumer. Capital Ones actions have caused undue financial strain, and I demand that all principal and interest be refunded immediately.

3. Monthly Payments in Accordance with Legal Rights Under established principles of equitable restitution and unjust enrichment, I am exercising my right to demand that monthly payments be made to me to compensate for the improper handling of this debt. Since the debt has been securitized and Capital One continues to unlawfully profit, I demand monthly payments equivalent to the amount unlawfully collected until this matter is fully resolved.

4. Holder in Due Course Rule As the holder in due course, I retain the right to assert defenses against Capital Ones unlawful collection efforts. Capital One has failed to provide full disclosure regarding the securitization of my debt, and under the Holder in Due Course Rule ( 16 CFR Part 433 ), I am protected from further collection efforts. I am formally exercising my right under this rule to demand the cessation of any further collection attempts.

5. Account Closure and Unjust Actions Capital Ones decision to close my account without proper notice or correction of the billing errors constitutes a violation of consumer protection laws. Precedents set in Krieger v. Bank of America show that such actions by a creditor without rectifying billing errors or informing the consumer about the securitization of debt violate the Fair Credit Billing Act ( FCBA ). I demand that the account be reinstated, and that billing errors be rectified immediately, along with restitution of any wrongful charges.

6. Arbitration Notice In accordance with applicable laws and our agreement, I am notifying Capital One that should this issue not be resolved promptly, I will pursue arbitration as a means of resolving this dispute. Both federal and state laws governing debt collection and arbitration provide for a fair and binding resolution process. I am entitled to seek redress for the financial harm caused by Capital Ones actions, and I fully intend to pursue my legal rights through arbitration if this matter is not addressed within the specified time.