Capital One, snake oil seller

[marmar]

Capital One Card Insurance ‘Worthless,’ Suit Says (Update1)
By Cary O’Reilly


Jan. 13 (Bloomberg) -- Capital One Financial Corp., the third-biggest issuer of Visa credit cards, rips off consumers by selling payment-protection insurance that is “essentially worthless,” according to a lawsuit.

The suit, filed Jan. 5 in federal court in Spartanburg, South Carolina, seeks class-action, or group, status on behalf of thousands of people who paid for the insurance but received no benefit, according to court documents.

Capital One claims the plans protect consumers by covering minimum payments on credit cards if the customer becomes temporarily disabled or involuntarily unemployed, court documents show. The McLean, Virginia-based company fails to disclose plan restrictions that make it impossible for many plan purchasers to collect, according to the suit.

“For example, thousands of senior citizens and retired individuals have been charged for payment protection, even though they were excluded from receiving benefits if they became ill or incapacitated,” according to the complaint.

Capital One spokeswoman Tatiana Stead said the company doesn’t comment on pending litigation. ............(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20603037&sid=aSaiE25s5rgg

[Sherman A1]

1. What!

A CC company screwing people over? Shocking! :sarcasm:

[igetalong]

2. This lawsuit could lead to some weird places. It MUST be stopped.

MUST be stopped, I tell you. More and more people are becoming hip to the fact that the insurance industry is little more than a
giant Ponzi scheme...and your state government is its enforcer (mandatory auto liability insurance). Soon, Uncle Sugar will be
the head Capo (mandatory so-called health insurance).

The implications of this suit are too profound. It will either be quietly settled or else narrowly construed.