Capital One Zero Percent Settlement

Margaret Murr and David Reign v. Capital One Bank (USA) N.A.
United States District Court, Eastern District of Virginia, Alexandria Division; Civil Action No.: 1:13-cv-1091 LMB/TCB

Frequently Asked Questions

Following is a list of frequently asked questions about the settlement. To view the answer to a question, please click on the question from the list below. The answers to these questions will be updated periodically to reflect the current status of the settlement.

  1. What is this lawsuit about?

    Plaintiffs Margaret Murr and David Reign filed a class action lawsuit claiming that Capital One Bank (USA), N.A.’s (“Capital One” or “Defendant”) policies and practices relating to certain interest and minimum payment charges after a credit card customer uses a 0% Access Check or No Hassle Check are deceptive, constitute a breach of contract, and violate the Truth in Lending Act, including the Credit Card Accountability Responsibility and Disclosure Act of 2009. Capital One denies all allegations and has asserted many defenses. The Settlement is not an admission of wrongdoing or an indication that any law was violated.

    The Parties have agreed to settle the lawsuit on the terms explained in the Long Form Notice.

  2. Why is this a class action?

    In a class action, one or more people, called “Class Representatives” (in this case, Margaret Murr and David Reign), sue on behalf of people who have similar claims. These people are referred to as the “Class” or as “Class Members.” One court resolves the issues for all Class Members, except for those who choose to exclude themselves from the Class. United States District Court Judge Leonie M. Brinkema is in charge of this class action.

  3. Why is there a Settlement?

    The Court did not decide in favor of Plaintiffs or Defendant. Instead, both sides agreed to the Settlement. That way, they avoid the cost of a trial, and settlement benefits go to the Settlement Class Members. The Class Representatives and the attorneys think the Settlement is best for the Class Members.

  4. Who is included in the Settlement Class?

    You are a Settlement Class Member if you used a 0% Access Check or No Hassle Check on your Capital One credit card in the United States from August 1, 2008, through January 2, 2015.

    The Settlement Class does not include the following persons or entities: those who submit a valid Request for Exclusion, Defendant and its officers, directors, and employees, and any Court personnel assigned to the Litigation.

  5. What is a 0% Check?

    “0% Check” means either an Access Check or a No Hassle check that Capital One mailed to its credit card customers offering a 0% APR for a certain period of time in exchange for an upfront fee.

  6. What does the Settlement provide?

    Under the Settlement, Capital One will provide checks to Settlement Class Members of either $5.50 or $2.00 depending on whether the Settlement Class Member is in Category 1, 2, or 3 as described in Question 7. Under the Settlement, Capital One will pay at least the full Cash Awards below to all eligible Settlement Class Members. This amount will be at a minimum $3,125,000 to Settlement Class Members. Since the lawsuit was filed, Capital One has also enhanced the disclosures concerning the Grace-Period Effect and the Payment-Allocation Effect in its offers of 0% Checks.

    In addition, Capital One has agreed to pay the costs of Notice to Class Members and settlement administration, for Court-approved awards of Plaintiffs’ attorneys’ fees and reimbursement of expenses incurred, and service awards to the Class Representatives (described in Question 12). The Settlement distribution process will be administered by an independent settlement administrator, Dahl Administration, (the “Claims Administrator”) approved by the Court.

  7. How much will my payment be?

    The amount of the Cash Award you may be entitled to under the proposed Settlement depends upon whether you fit within Category 1, 2, or 3 below. Settlement Class Members who used 0% Checks on multiple Capital One credit card accounts may fit within multiple categories and receive a Cash Award for each account. Additional information is provided in Section 4.02 of the Settlement Agreement, which is available on the Settlement Documents page of this website. Capital one’s records will be used to confirm the category that you fit within:

    Category Description Payment Amount How to Receive Payment?
    One Customers who used only one 0% Check on an account* and were charged interest on their purchase balance because of the 0% Check. $5.50 Do nothing. A check will automatically be sent to you once the Settlement becomes final.
    Two Customers who used more than one 0% Check on an account at least three months apart and were charged interest on their purchase balance because of the 0% Check. $5.50 Submit a completed Claim Form on or before July 1, 2015.
    Three Customers who used one or more 0% Checks but were not charged interest on their purchase balance because of the 0% Check. $2.00 Submit a completed Claim Form on or before July 1, 2015

    *Customers who used more than one 0% Check on an account, all within less than three months, are treated as if they used only one 0% Check for purposes of the Cash Awards.

  8. How can I get a cash payment?

    If you are a Category 1 Settlement Class Member as described in Question 7, you do not have to do anything to receive your Cash Award. The Cash Award will be automatically sent to you after the Settlement becomes final.

    If you are a Category 2 or 3 Settlement Class Member as described in Question 7, to receive your Cash Award you must complete and return a Claim Form on or before July 1, 2015. You may (a) CLICK HERE to submit an online Claim Form or the Claim Form can be (b) mailed to Capital One 0% Check Settlement, c/o Dahl Administration, P.O. Box 3614, Minneapolis, MN 55403-0614.

    Claim Forms are also available on the Settlement Documents page of this website or by calling 1-855-853-4454. Category 1 Settlement Class Members do not need a Claim Form as the Cash Award will be sent to them automatically.

  9. When would I get my cash payment?

    The Court will hold a “Final Approval Hearing” on June 26, 2015 at 10:00 a.m., to decide whether to approve the Settlement. If the Court approves the Settlement, there may be appeals. The appeal process can take time, perhaps more than a year. Please be patient.

  10. What am I giving up in return for the Settlement benefits?

    If the Court approves the proposed Settlement and you do not request to be excluded from the Settlement Class, you will release (give up) all claims concerning the “Grace-Period Effect” and the “Payment-Allocation Effect” in connection with a Capital One 0% Check used from August 1, 2008, to January 2, 2015 as covered by this Settlement, and the case will be dismissed on the merits and with prejudice.

    “Grace-Period Effect” means the loss of a Settlement Class Member’s interest-free grace period on repaying purchases as a result of using a 0% Check and carrying the resulting 0% balance on a Capital One credit card account.

    “Payment-Allocation Effect” means any effect on the amount of interest paid on purchases caused by Capital One’s practices of considering the balance created by a Settlement Class Member’s acceptance of a 0% Check in setting the amount of the Settlement Class Member’s monthly minimum payment, and of applying the minimum payment first to that balance or another 0% balance before the purchase balance.

    If you remain in the Settlement Class, you may not assert any of those claims in any other lawsuit or proceeding. This includes any other lawsuit or proceeding already in progress. The judgment and orders entered in this Litigation, whether favorable or unfavorable, will bind all Settlement Class Members who do not request to be excluded.

    The full terms of the Release are contained in the Settlement Agreement.

  11. Do I have a lawyer in this case?

    The Court appointed the law firms of Blood Hurst & O’Reardon, LLP and Scott+Scott, Attorneys at Law, LLP to represent you and other Settlement Class Members. These lawyers are called Class Counsel. If you want to be represented by your own lawyer, you may hire one at your own expense and enter an appearance through your own counsel.

  12. How will the lawyers be paid?

    Class Counsel will ask the Court to award attorneys’ fees and costs not to exceed $1,500,000. The awards will be paid by Capital One and will not impact the amount of the Cash Awards that Settlement Class Members will receive. Defendant has agreed to not to oppose these awards.

    Class Counsel will petition the Court for service awards of up to $7,500 for Class Representative Margaret Murr and $1,500 for Class Representative David Reign. The purpose of such awards, if the Court chooses to award them, is to compensate these persons for efforts and risks taken on behalf of the Class. Defendant may oppose these awards.

  13. How do I get out of the Settlement?

    If you do not want a payment from this Settlement, and want to keep the right to sue or continue to sue Capital One on your own about the legal issues in this Litigation, then you must take steps to get out. This is called “excluding” yourself – or is sometimes referred to as “opting out” of the Class.

    If you do not want to be included in the Settlement Class and receive a Cash Award, you must send a written “Request for Exclusion” letter to the Claims Administrator postmarked or delivered no later than May 12, 2015. The Request for Exclusion must include: (a) your name; (b) your address; (c) your telephone number; (d) your signature; (e) a statement that you are a Settlement Class Member and that you wish to be excluded from the Settlement Class; and (f) the case name and number: Murr v. Capital One Bank (USA), N.A., Case No. 1:13-cv-1091 LMB/TCB (E.D. Va.).

    Your Request for Exclusion must be postmarked or delivered to the Claims Administrator no later than May 12, 2015, at the following address:

    CAPITAL ONE 0% CHECK SETTLEMENT
    C/O DAHL ADMINISTRATION
    PO BOX 3614
    MINNEAPOLIS, MN 55403-0614

    A Request for Exclusion must be written, and may not be asked for telephonically. If you ask to be excluded, you will not get any Cash Award, and you cannot object to the Settlement. However, you will not be legally bound by anything that happens in this Litigation and you will keep your right to separately pursue claims against Capital One relating to the subject matter of this Litigation.

  14. If I don’t exclude myself, can I sue Capital One for the same thing later?

    No. Unless you exclude yourself, you give up the right to sue Capital One for the claims that this Settlement resolves. You must exclude yourself from this Settlement Class to pursue your own lawsuit. Remember, your Request for Exclusion must be postmarked or delivered on or before May 12, 2015.

  15. If I exclude myself, can I get money from this Settlement?

    No. If you exclude yourself, you will not receive any money. Do not send in a Claim Form if you exclude yourself. But you will not lose any right you may have to sue, continue to sue, or be part of a different lawsuit against Capital One about the legal issues in this case.

  16. How do I tell the Court that I do not like the Settlement?

    If you are a Settlement Class Member, you can object to the Settlement if you do not like any part of it and the Court will consider your views. To object, you must timely file with the Clerk of Court and timely serve on the Parties’ counsel identified below by hand or first-class mail a notice of objection(s) to the Settlement in Murr v. Capital One Bank (USA), N.A., Case No. 1:13-cv-1091 LMB/TCB (E.D. Va.).

    The letter must include the following information: (a) a heading which refers to the Litigation; (b) your full name, telephone number, email address and residential address (your actual residential address must be included); (c) if represented by counsel, the name, address and telephone number of all of your counsel; (d) a statement under penalty of perjury that you are a Settlement Class Member; (e) a statement whether you intend to appear at the Final Approval Hearing, either in person or through counsel; (f) all grounds for the objection, accompanied by any legal support for the objection known to you or your counsel; (g) copies of any papers, briefs, or other documents upon which the objection is based; and (h) your dated, handwritten signature (an electronic signature or signature of your attorney is not sufficient).

    The Parties will have the right to take discovery, including a deposition, of any objector to assess the objector’s standing, motives, and intent.

    Your objection must be filed on or before May 12, 2015, and delivered to these four different places:

    Clerk of the Court
    United States District Court
    Eastern District of Virginia
    401 Courthouse Square
    Alexandria, VA 22314
    Joseph P. Guglielmo
    Scott+Scott, Attorneys at Law, LLP
    The Chrysler Building
    405 Lexington Avenue, 40th Floor
    New York, NY 10174
    Timothy G. Blood
    Thomas J. O’Reardon II
    Blood Hurst & O’Reardon, LLP
    701 B Street, Suite 1700
    San Diego, CA 92101
    Aaron D. Van Oort
    Eileen M. Hunter
    Faegre Baker Daniels LLP
    2200 Wells Fargo Center
    90 South Seventh Street
    Minneapolis, MN 55402

  17. What is the difference between objecting and excluding?

    Objecting is telling the Court that you do not like something about the Settlement. You can only object if you stay in the Settlement Class. Excluding yourself is telling the Court that you do not want to be part of the Settlement Class or the Litigation. You cannot request exclusion and object to the Settlement. If you exclude yourself, you have no basis to object because the case no longer affects you. Settlement Class Members who exclude themselves may, if they wish, enter an appearance through their own counsel.

  18. When and where will the Court decide whether to approve the Settlement?

    The Court will hold a Final Approval Hearing on June 26, 2015, at 10:00 a.m. in the Courtroom of the Honorable Leonie M. Brinkema, United States District Court for the Eastern District of Virginia, Albert V. Bryan U.S. Courthouse, 401 Courthouse Square, Alexandria, VA 22314.

    At this Final Approval Hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. The Court will listen to people who have asked to speak at the Final Approval Hearing. After the Final Approval Hearing, the Court will decide whether to approve the Settlement. The Court may also consider Class Counsel’s request for attorneys’ fees and expenses, as well as the Class Representatives’ requests for service awards. We do not know how long it will take for the Court to render its decision.

  19. Do I have to come to the Final Approval Hearing?

    No, Class Counsel will answer any of the Court’s questions. You are, however, welcome to come at your own expense. If you submit an objection, you do not have to come to the Court to talk about it. As long as you delivered your written objection on time, the Court will consider it. You may also pay your own lawyer to attend, but it is not necessary.

  20. May I speak at the Final Approval Hearing?

    You may ask the Court for permission to speak at the Final Approval Hearing. To do so, you must file with the Court a “Notice of Intention to Appear.” Be sure to include your name, address, telephone number, and your signature. You may also be required to provide proof that you are a Settlement Class Member. Your Notice of Intention to Appear must be filed on or before May 12, 2015, and must also be served on the Clerk of the Court, Class Counsel and Defense Counsel at the four addresses listed in Question 16 above. You cannot speak at the Final Approval Hearing if you exclude yourself.

  21. What happens if I do nothing at all?

    If you do nothing, you will be part of the Settlement Class. If you are a Category 1 Settlement Class Member as described in Question 7, you will automatically receive a Cash Award. If you are a Category 2 or 3 Class Member as described in Question 7, you will not receive a Cash Award unless you submit a valid and timely Claim Form by July 1, 2015. You will not be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against Defendant about the legal issues in this Litigation. You will be bound by the determinations in this Litigation.

  22. Are there more details about the Settlement?

    The Settlement Agreement contains the complete terms of the Settlement. You can view a copy of the Settlement Agreement on this website, or by reviewing the records on file in the Court Clerk’s office, United States District Court, Eastern District of Virginia, 401 Courthouse Square, Alexandria, VA 22314. The Claim Form and other information can be reviewed and downloaded from the Settlement Documents page on this website.

    For other questions and inquiries, please contact the Claims Administrator.