The U.S. Court of Appeals for the Second Circuit revived claims of illegal overdraft fees and violation of consumer protection laws filed against McLean, Va.-based Capital One Financial Corp.
The complaint was filed by Tawanna Roberts, accusing the company of breaching its contract by assessing overdraft fees when it settles transactions, instead of when it authorizes them.
The federal appeals court argued that the company's overdraft rules were "ambiguous." It ruled to vacate the dismissal of Roberts' claims on breach of contract and violation of consumer protection laws but affirmed the judgment on causes of action for breach of the covenant of good faith and fair dealing, conversion, and unjust enrichment.
