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CreditCourt Forum » Baker v. Fair Isaac, CRAs , American Agencies, Pacific Bell ... » Exhibits » 11/12/02: complaint about Cap One to Federal Reserve Bank of Richmond J. Alfred Broaddus, Jr. « Previous Next »

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1/30/03 - request for update on status of investigation from Mr. Mc...Christine Baker01-30-03  11:23 pm
11/21/02 - response by James McAfee, Senior VP and General Counsel ...
James McAfee, Senior VP and General Counsel for the Federal Reserve Bank of Richmond acknowledged receipt of my letter and he intended to complete his review "without unavoidable delay."
Christine Baker12-19-02  11:55 pm
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Christine Baker
Board Administrator
Username: Admin

Post Number: 351
Registered: 08-2002
Posted on Wednesday, November 13, 2002 - 12:35 am:   Edit Post Delete Post Print Post    Move Post (Moderator/Admin Only)

Below is my complaint to the Federal Reserve Bank of Richmond President J. Alfred Broaddus, Jr.

Broaddus pic

J. Alfred Broaddus' Bio:

"Mr. Broaddus received his M.A. and Ph.D. degrees in Economics from Indiana University. He was awarded an honorary Doctor of Laws degree from Washington and Lee in 1993, and a Distinguished Alumnus Award from Indiana in 1996"

and "In addition to his responsibilities at the Richmond Bank, Mr. Broaddus serves every third year as a member of the Federal Open Market Committee of the Federal Reserve System."

He looks like a real nice guy. Let's see what he has to say.
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Christine Baker
Board Administrator
Username: Admin

Post Number: 350
Registered: 08-2002
Posted on Tuesday, November 12, 2002 - 11:37 pm:   Edit Post Delete Post Print Post    Move Post (Moderator/Admin Only)

Christine Baker
989 So. Main St. A-150
Cottonwood, AZ 86326
christine@bayhouse.com
Fax: (571) 222-1000

J. Alfred Broaddus, Jr.
President, Federal Reserve Bank of Richmond
PO Box 27622
Richmond, Virginia 23261

Via fax to 804-697-4021

November 12, 2002

Re: Capital One FCRA violations - my account numbers 5291 4921 7468 XXXX and 5187 2022 1774 XXXX
Capital One FCRA and TILA violations - Katherine and Joseph (deleted)- published at http://forum.creditcourt.com/discus/messages/180/180.html

Dear Mr. Broaddus:

Your staff is NOT enforcing consumer protection laws. Specifically, I am referring to the complaint by the (deleted), handled very poorly by J. Brown as per his/her letter dated 7/9/02, apparently in response to my 7/7/02 ignored fax. I am sorry I don't have a reference number, none was provided.

I am attaching my 7/7/02 fax to Deborah L. Rodriguez, Regulatory Compliance Assistant. To date, over 4 months later, I have not received a reply. I will greatly appreciate your answers to the questions in my 7/7/02 fax.

To increase the probability of answers, I decided to make this an "OPEN" complaint, addressed to you personally, and published at BayHouse.com and CreditCourt.com as well as at various other web sites. For easier reading you may want to view and print this complaint at http://forum.creditcourt.com/discus/messages/18/583.html.

Below are the summaries of my complaints about Capital One's illegal and deceptive business practices. As I have been publishing credit reporting and scoring web sites and forums for several years, I know that Capital One Bank routinely violates consumer protection legislation. I also personally experienced tremendous frustration trying to get Capital One to correct their credit reporting errors and to get accounting for charged off accounts and I am able to provide lots of documentation such as faxes and telephone recordings.


1) Capital One's failure to supply statements after charge-offs and continuing to charge usurious 20%+ interest rates in violation of the Truth in Lending Act (TILA)

Apparently your J. Brown thinks it's perfectly ok to charge interest after an account has been charged off and NO statements have been provided for years. For your reference, here is the relevant excerpt from the TILA 15 USC 1637 (b) Statement required with each billing cycle:

"The creditor of any account under an open end consumer credit plan shall transmit to the obligor, for each billing cycle at the end of which there is an outstanding balance in that account or with respect to which a finance charge is imposed, a statement setting forth each of the following items to the extent applicable:

(1) The outstanding balance in the account at the beginning of the statement period.

...."

How did the Federal Reserve Bank of Richmond, as Capital One's regulator, determine that Capital One is exempt from this consumer protection legislation?

Attorneys have told me that there is no such exemption, I even heard of a class action against Capital One based on this TILA violation in Illinois, and I'll greatly appreciate your explanation.

It is my opinion that NOBODY should have the right to charge a consumer over 20% interest on a credit card charge-off. This usurious rate is about twice the legal interest rate for a judgment in most states!

In my clients' case, I find it especially appalling that J. Brown recommended that they pay Capital One ANOTHER $1,000 after already having paid for 3 years through the Amerix - Genus credit counseling program.

Why did J. Brown rule in favor of Capital One, while my clients are clearly the victims of the Capital One and Amerix - Genus deceptive business practices, misrepresentations and FCRA/TILA violations?

Why did J. Brown recommend that my clients pay $1,000 to Capital One without the slightest piece of evidence that my clients owe anything?

NO accounting was provided by Capital One!

Mr. Broaddus, what your J. Brown and Capital One call accounting makes the Enron fraud pale in comparison.

I am asking you to immediately order Capital One to suspend all collection efforts until they can provide complete accounting for every charged off account.

And should you determine that Capital One can legally charge usurious interest rates of their choice without providing statements and without providing ANY accounting, I'll greatly appreciate your detailed explanation.


2) Capital One refuses to report the credit LIMITS to the CRAs, apparently for all credit card accounts and in violation of the Fair Credit Reporting Act (FCRA)

As the credit bureaus and Capital One know, this practice is lowering the credit scores for many of their cardholders substantially, especially for consumers with few or no other credit cards and/or low limits, i.e. the population that's NOT wealthy.

Because Fair Isaac's credit scoring software utilizes the "High Credit" instead of the "Credit LIMIT" for Capital One accounts, the Balance/Limit ratio calculated by Fair Isaac's software is obviously often MUCH higher than it should be.

Example:

A consumer with only one revolving account with a $5,000 credit limit and a $250 balance has a 5% B/L ratio.

If this account is a Capital One account, reported with a "High Credit" of $250, the B/L ratio is 100%. The credit scores can easily be lowered over 50 points due to Capital One's refusal to report the credit LIMIT.

The subsequent damages to many millions of Americans are enormous. Many consumers can no longer afford insurance or are declined for insurance due to their low credit scores.

Ultimately, many consumers are forced into bankruptcy as a direct result of higher interest and insurance rates due to the low credit scores.

In many cases, those scores are low NOT because of late payments, but because of Capital One's policy not to report the credit LIMITS to the credit bureaus in violation of the FCRA.

Mr. Broaddus, have you been aware of the damages inflicted on consumers by this Capital One practice to NOT report the credit LIMITS?

Or is this NEWS to you?


For your reference, FCRA 623. Responsibilities of furnishers of information to consumer reporting agencies [15 U.S.C. 1681s-2]:

"(a) Duty of furnishers of information to provide accurate information.

(2) Duty to correct and update information. A person who

(A) regularly and in the ordinary course of business furnishes information to one or more consumer reporting agencies about the person's transactions or experiences with any consumer; and

(B) has furnished to a consumer reporting agency information that the person determines is not complete or accurate, shall promptly notify the consumer reporting agency of that determination and provide to the agency any corrections to that information, or any additional information, that is necessary to make the information provided by the person to the agency complete and accurate, and shall not thereafter furnish to the agency any of the information that remains not complete or accurate."

Because the FCRA does not allow consumers to sue for section a) violations, and only the "regulator" may enforce these regulations, I am asking you, the President of the Federal Reserve Bank of Richmond, Capital One Bank's "regulator" to enforce the requirement for accurate and complete credit reporting.

I am requesting that you to order Capital One to immediately furnish only complete reports to the CRAs, and to compensate their cardholders for the tremendous damages suffered.

Capital One also routinely ignores section b) and does NOT investigate and does NOT correct their reporting:

"(b) Duties of furnishers of information upon notice of dispute.

(1) In general. After receiving notice pursuant to section 611(a)(2) [ 1681i] of a dispute with regard to the completeness or accuracy of any information provided by a person to a consumer reporting agency, the person shall

(A) conduct an investigation with respect to the disputed information;

(B) review all relevant information provided by the consumer reporting agency pursuant to section 611(a)(2) [ 1681i];

(C) report the results of the investigation to the consumer reporting agency; and

(D) if the investigation finds that the information is incomplete or inaccurate, report those results to all other consumer reporting agencies to which the person furnished the information and that compile and maintain files on consumers on a nationwide basis."

Upon my dispute with the credit bureaus, Capital One verified their INCOMPLETE reporting and in one case reported the "High Credit" as LOWER than the balance at that time.

I assume this was a retaliatory action with the intent to lower my credit scores even more.

I hereby request that you order Capital One to investigate the disputes of ALL consumers, to refrain from retaliatory credit reporting and I am requesting that you impose appropriate fines and arrange for restitution to affected Capital One cardholders.

My disputes were for the above referenced Capital One M/C accounts, please investigate my complaint.


3) It is Capital One's business practice to NOT comply with the FCRA requirement to provide notice of dispute to the credit bureaus.

I have advised Capital One Litigation Specialist LeighAnne Coverstone of their failure to comply, she could NOT have cared less! Apparently she was counting on the fact that the Federal Reserve Bank of Richmond also could not care less about their FCRA violations.

I have reviewed MANY credit reports, ONLY when they were sued did Capital One comply with section [15 U.S.C. 1681s-2] (a) Duty of furnishers of information to provide accurate information:

"(3) Duty to provide notice of dispute. If the completeness or accuracy of any information furnished by any person to any consumer reporting agency is disputed to such person by a consumer, the person may not furnish the information to any consumer reporting agency without notice that such information is disputed by the consumer."

Capital One simply ignores consumer disputes.

Because I can NOT sue for this violation, I am asking you to enforce the FCRA on my behalf as well as on behalf of all Capital One cardholders:

"(d) Limitation on enforcement. Subsection (a) shall be enforced exclusively under section 621 [ 1681s] by the Federal agencies and officials and the State officials identified in that section."

The Capital One compliance people and attorneys ignore everything in section a) because they count on your dismissing complaints and telling consumers that no consumer protection law was violated.

Mr. Broaddus, it is my understanding that the Federal Reserve Bank of Richmond is in charge of enforcement of the FCRA.

Why are you NOT enforcing the FCRA?


4) Capital One refuses to respond to faxes with settlement offers and requests for accounting.

Is it an acceptable business practice to ignore faxed communications?

Why does the Federal Reserve Bank of Richmond ignore faxed communications such as my 7/7/02 fax attached below?


In closing, it is extremely disturbing to see how the "regulators" assist Capital One with the exploitation of the middle and lower class, the working people, the poor, the ill, pretty much anyone who isn't wealthy. As per a recent Capital One press release, they hold 48.6 million accounts.

Mr. Broaddus, I will greatly appreciate your prompt investigations and actions.

Very truly yours,

Christine Baker
christine@bayhouse.com

c: Katherine and Joseph (deleted)
Robert W. Closs, President Amerix - Genus Credit Management Corporation - Via fax to (407) 523-7583
FTC, via fax to 202-326-2012
posted at http://forum.creditcourt.com/discus/messages/18/583.html

----------------------------------

My July 7, 2002 fax - no response was received:

Christine Baker
BayHouse LLC
www.CreditCourt.com
www.BayHouse.com
christine@bayhouse.com
Fax: (571) 222-1000

Deborah L. Rodriguez
Regulatory Compliance Assistant
Federal Reserve Bank of Richmond
PO Box 27622
Richmond, Virginia 23261

Via fax to 804-697-4021 -- 4 pages

July 7, 2002

Re: Your May 31, 2002 letter to Joseph and Katherine (deleted) - Capital One

Dear Ms. Rodriguez:

Katherine and Joseph (deleted) obtained my services to assist with the resolution of their dispute with Capital One, the power of attorney is attached. They have your May 31, 2002 letter, but it's now 5 weeks later and Capital One is STILL demanding $1,000, STILL refuses to provide accounting, and STILL reports the charge-offs on my clients' credit reports.

1) Are you actually doing anything? Why am I not seeing a complaint number on your letter?

2) I am attaching my 7/1/02 e-mail to Ms. Weigle-Harris at Capital One and I would like to know whether you have issued any "opinion letters" similar to the FTC, addressing the legality of Capital One's business practices. Specifically, I am referring to questions 1 - 8 in the attached letter.

3) An attorney told me that Capital One can not add any interest after an account has been charged off.

Is that correct? If not, which legislation specifically allows Capital One to add interest to charged off accounts? How long? And how is the interest rate determined?

4) How many complaints did you receive about Capital One last year, this year, and what were the results?

FYI: I will publish this case and our correspondence at CreditCourt.com and I will greatly appreciate your taking the time to respond.

Sincerely,


Christine Baker
christine@bayhouse.com

c: Katherine and Joseph (deleted)

-----------------------------------

Date: Tue, 12 Nov 2002 23:44:18 -0800 -0800
From: faxaway@faxaway.com
Subject: CONFIRM: Capital One complaint - FCRA + TILA violations

Hello from Faxaway, the world's easiest E-Mail to Fax service!

CONFIRMATION OF YOUR FAX TRANSMISSION
FAX STATUS: SUCCESSFUL TO 18046974021
COUNTRY: 1-NORTH AMERICA
TRANSMISSION: 13-Nov-2002 07:44:34 GMT.
6 Page(s).
DURATION: 2.4 Minute

---------------

Date: Tue, 12 Nov 2002 23:47:04 +0000 -0800
From: faxaway@faxaway.com
Subject: CONFIRM: Capital One complaint - FCRA + TILA violations

Hello from Faxaway, the world's easiest E-Mail to Fax service!

CONFIRMATION OF YOUR FAX TRANSMISSION
FAX STATUS: SUCCESSFUL TO 14075237583
COUNTRY: 1-NORTH AMERICA
TRANSMISSION: 13-Nov-2002 07:46:55 GMT.
6 Page(s).
DURATION: 2.4 Minute

-------------------

Date: Tue, 12 Nov 2002 23:47:22 -0800 -0800
From: faxaway@faxaway.com
Subject: CONFIRM: Capital One complaint - FCRA + TILA violations

Hello from Faxaway, the world's easiest E-Mail to Fax service!

CONFIRMATION OF YOUR FAX TRANSMISSION
FAX STATUS: SUCCESSFUL TO 12023262012
COUNTRY: 1-NORTH AMERICA
TRANSMISSION: 13-Nov-2002 07:47:09 GMT.
6 Page(s).
DURATION: 2.4 Minute

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