Lawsuit Claims Capital One Bank Violated ECOA

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A proposed class action filed against Capital One Bank, N.A. claims it violated the federal Equal Credit Opportunity Act (ECOA), as well as Virginia’s state ECOA, by allegedly taking adverse actions against consumers without providing specific reasons as to why. According to the lawsuit, Capital One “purposely misrepresents and omits certain information,” including the consumer reporting agency that passed the adverse information along to the bank. Disclosure of the specific reasons behind adverse action, the complaint argues, is essential in correcting credit reporting errors.

The plaintiff says the process in which he was engaged to obtain a home equity loan was “going smoothly” until he received a “Statement of Credit Denial, Termination of Change” notifying him that his loan was denied. The reason given, the plaintiff’s suit notes, was that reporting agencies Equifax and Experian had wrongly claimed that he filed for bankruptcy. The plaintiff immediately reached out to Capital One to address the error, which confirmed the reason for his loan denial was inaccurate. Despite following up with Capital One, as of the filing of the lawsuit, the plaintiff has received no response.

The erroneous information contained in the plaintiff’s consumer report allegedly came from third party Lexis Nexis, which claimed it received its information from Accurint.