Capital One Accused in Suit of Mishandling Unauthorized Charges

Capital One fails to properly investigate fraud claims and flips its legal burden to prove the inauthenticity of charges onto consumers, a new proposed class action alleges.

After her debit card, phone, and driver’s license were stolen, lead plaintiff Leah Walton says the bank “mechanically” rejected her fraud claim of $1,500 in unauthorized charges on her account with a form letter and didn’t provide documentation of a reasonable investigation, according to her complaint filed Thursday in the US District Court for the Northern District of California.

In the days that followed the robbery, Walton says she tried to notify the ...