Capital One’s Illegal Strategy for Debt Collection
In a move that redefines sleazeball, Capital One (NYSE:COF) has been illegally trying to collect debts from consumers already wiped clean by bankruptcy. According to the Wall Street Journal, “A court-appointed auditor concluded earlier this year that Capital One pursued 15,500 “erroneous claims” seeking money previously erased by a bankruptcy-court judge.”
Analysts and investors pay little attention to the credit card company’s debt collection component, which is a major part of its business. Capital One had $2.7 billion in net income on revenue of $12.22 billion so far this year as of Sept. 30, but it also had to write off $2.9 billion in uncollectible loans. Here’s how Capital One shares are reacting to the news.
Capital One Financial Corp. (NYSE:COF): COF shares recently traded at $42.68, up $0.04, or 0.09%. They have traded in a 52-week range of $35.94 to $56.26. Volume today was 517,908 shares versus a 3-month average volume of 5,801,940 shares. The company’s trailing P/E is 5.71, while trailing earnings are $7.47 per share. Get the most recent company news and stock data here >>