Consumer complaint received 2025-02-01 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem when making payments — Problem during payment process
Company: CAPITAL ONE FINANCIAL CORPORATION
State: MI

Complaint narrative:
Subject : Complaint Regarding Failure to Accept Legal Tender & Unfair Business Practices Financial Institution Involved : Capital One ( Credit Card ) Summary of Complaint : I am submitting this complaint against Capital One and XXXX XXXX XXXX XXXX for their refusal to accept a lawful tender of payment, in violation of : 1. Federal Reserve Act Section 16 2. Uniform Commercial Code ( UCC ) Articles 3 & 4 3. Truth in Lending Act ( TILA ) - 15 U.S.C. 1666c 4. Unfair and Deceptive Acts or Practices ( UDAP ) under Consumer Financial Protection Laws 5. Fair Credit Reporting Act ( FCRA ) - For negative credit reporting occurred This refusal constitutes a breach of contract, an unlawful crediting practice, and an unfair business practice, causing financial harm through unlawful fees, interest, and credit damage. 
Details of the Issue : 1. Tender of Payment Sent : On XX/XX/year>, I sent a lawful tender of payment to Capital One to satisfy my outstanding balance. 
This was issued pursuant to Federal Reserve Act Section 16, which governs lawful money and obligations, bill of exchange act, and UCC Article 3 ( Negotiable Instruments ). 
The payment was valid under the Bill of Exchange Act, making it a legal, enforceable obligation that should have been accepted and credited accordingly.

2. Financial Institutions Failure to Process the Payment : The institutions rejected the tender without citing any valid legal basis.

They continued to charge interest, fees, and penalties despite my lawful attempt to satisfy the balance. 
3. Violations Committed : A. Violation of UCC Article 3 & 4 - Negotiable Instruments and Bank Deposits UCC 3-104 : Defines a negotiable instrument as an unconditional promise or order to pay a fixed amount. My payment met these criteria.

UCC 3-501 : Requires the presentment of a valid payment instrument, which they unlawfully refused.

UCC 3-603 : Once a tender of payment is made, the obligation is discharged to the extent of the payment amount, meaning no further interest, fees, or penalties should apply.

UCC 4-302 : If a financial institution fails to process a properly presented payment, they are liable for damages. 
B. Breach of Contract The refusal to accept lawful tender violates the terms of the cardholder agreement and the general obligation to accept payments under contract law. 
C. Violation of the Truth in Lending Act ( TILA ) - 15 U.S.C. 1666c TILA requires creditors to properly apply credit payments when made in accordance with contractual and legal standards. 
Their refusal violates federal consumer protections regarding billing and crediting practices. 
D. Unfair and Deceptive Acts or Practices ( UDAP ) Continuing to charge interest and fees after rejecting valid payment is an unfair and deceptive practice, which is prohibited under 12 U.S.C. 5531. 
E. Fair Credit Reporting Act ( FCRA ) Violations The institutions reported delinquency and negative credit information due to their refusal to process my payment, this is a violation of the FCRA. 


Supporting : The institution failed to respond to multiple letters. 
My billing statements shows continued fees and interest despite payment. 
My credit report has been negatively affected

Company response to consumer: Closed with explanation