Capital One agrees to DOJ settlement

WASHINGTON, Oct. 2 (UPI) -- The U.S. Department of Justice said Thursday it had reached a settlement with Capital One Bank (USA) concerning about 5,600 improper debt payments.

The Department's Trustee Program said Capital One had filed claims for repayment of debts that had been previously settled in earlier bankruptcy cases.

"Capital One has acknowledged that Chapter 13 bankruptcy estates paid the company approximately $340,000 to which it was not entitled," the U.S. Trustee Program said in a statement.

Capital One agreed to have approximately 650,000 customer accounts reviewed by an auditor, who will assign reimbursements, where necessary. The reimbursements would also include the auditor's assessment of "out-of-pocket" costs, such as attorneys' fees, the statement said.