Capital One Sued for Alleged Credit Reporting Errors

Phoenix, AZ (PRWEB) February 28, 2006

When Frank J. Rumbauskas Jr. recently checked his credit reports, he was shocked to find late payments being reported on a Capital One credit card all the way through January, 2006.

The catch is that the card was closed almost five years ago, with a last payment date of March, 2001.

Rumbauskas initially disputed the error with all three major credit bureaus, all of which reported that Capital One verified the erroneous information. When he filed a second dispute with the bureaus, insisting that it is impossible to make monthly payments on an account that has been closed for nearly five years, Capital One again verified the information as accurate.

"I was left with no other choice but to sue Capital One," says Rumbauskas. "Based upon information I've obtained about the credit bureau scoring systems, this error is costing me at least 50 points on my credit score. This definitely spells the difference between prime and sub-prime credit. With a new car and home purchase in my near future, I cannot afford to let this mistake stand. Capital One verified the mistake without conducting a proper investigation and it appears that they refuse to do so; therefore court is my only option."

Rumbauskas explains that he is asking only for the minimum amount in statutory damages in this lawsuit and is not in it to make money. "I just want the mistake corrected. They wouldn't do it on their own, so hopefully the judge will convince them to do it, and hopefully my action will save other consumers from the same nightmare."

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