Brennan, Wiener & Associates Takes On Credit Card Giant Capital One ("What's in Your Wallet?") Over Post-Bankruptcy False Credit Reporting

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James Krider has filed a lawsuit against banking giant Capital One Bank over post-bankruptcy false credit reporting. Mr. Krider alleges that Capital One has continued to credit report Capital One accounts as delinquent or charged off on his credit reports even though he discharged them in bankruptcy proceedings. Mr. Krider is represented by prominent Southern California credit damage and identity theft attorney Robert F. Brennan, of La Crescenta, Ca. James Krider v. Capital One Bank, et al., Case No. CV 07-07707 ODW (AJWx), United States District Court, Central District (Los Angeles).

James Krider thought that having to file bankruptcies was tough enough. In addition to the fact that it would be reported on his credit reports for years to come, he felt he had let down some of the people who'd lent money to him. He'd had some of his credit cards for more than 20 years, and had been very responsible with his credit until some personal and professional reversals required him to resort to the bankruptcy court to get control of his debts.

When he began rebuilding his credit, he noticed what at first he thought was a mistake: Capital One was still reporting three credit cards which he had discharged in his bankruptcy filings. He did not understand this at all and disputed this credit reporting with all three major credit bureaus and also with Capital One. Imagine his surprise when Capital One insisted that it had the right to continue to credit-report his discharged accounts as "delinquent" on his credit reports.

"To say the least, I was shocked," explains Krider. "I had thought that this was some kind of mistake, but I disputed the credit reporting of these three accounts repeatedly to no avail. Capital One has taken the position that it has a perfect right to credit report these accounts as delinquent even though each has been discharged in bankruptcy. I admit, I am not proud of having had to declare bankruptcy, but the bankruptcy notation on my credit reports is bad enough and that will be there for 10 years. Having the credit card companies continue to report my old credit cards as still delinquent is doubly bad and makes it that much tougher for me to get back on my feet.

"In its commercials, Capital One asks, 'What's in Your Wallet?' Well, unfortunately, thanks to Capital One I effectively have a hole in my wallet because of the false credit reporting."

Krider is not alone. A growing number of banks and credit card companies have quietly been "pushing the envelope" on credit reporting of bankruptcy-discharged debt, hoping to pressure consumers who have recently been through bankruptcy to pay these debts.

Krider's attorney, Robert F. Brennan of Brennan, Wiener & Assoc. in La Crescenta, Ca., comments on this. "This business practice is targeted at two types of consumers: those that are under a lot of pressure to rebuild their credit and those that lack the education or sophistication to understand that their debts have been discharged in the bankruptcy proceedings. Mr. Krider, an educated professional, falls into the former category. He's working hard to rebuild his credit and produce and participate to the fullest in our society, but Capital One is actively blocking his efforts. For any consumers affected by this practice, it is unfair and we're confident that our federal judges will agree."

Krider filed a lawsuit against Capital One and the three major credit bureaus in late 2007 in the United States District Court, Central District in downtown Los Angeles. Krider v. Capital One Bank, et al., Case No. CV 07-07707 ODW (AJWx). The matter is in discovery proceedings now, with a trial date set in February of 2009. Brennan says they want their matter decided by a jury trial. Krider is seeking both money damages as well as a permanent deletion from his credit reports of any delinquent reporting of any accounts he had included in his bankruptcies.

Contact Information: Robert F. Brennan, Brennan, Wiener & Associates, 3150 Montrose Ave., La Crescenta, Ca. 91214, (818) 249-5291. Mr. Brennan and his firm are the leading consumer protection and credit damage attorneys in Southern California. Mr. Brennan has been selected as a "Southern California Super Lawyer" for three years running, for 2006, 2007 and 2008.


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