CHARLESTON, W.Va. -- State officials have reached a $13.5 million settlement with credit card company Capital One, which is alleged to have used misleading advertising to unfairly saddle West Virginians in debt.

West Virginia Attorney General Darrell McGraw announced the settlement Tuesday.  Of the $13.5 million, $3 million is debt Capital One has agreed to forgive. One million dollars will go to restitution and consumer education, and $9.5 will go to the state to "to be used for financial relief for West Virginia consumers," the release states.

"This was a hard-fought battle, resulting in a lot of money for the state of West Virginia," McGraw said in the release. "Capital One is to be commended for changing the practices that prompted the State's action."

The attorney general began investigating the Capital One in 2005, after several consumers came forward with claims that the card company lured them with misleading advertising and struck them with hidden fees, according to previous Gazette reports.

At least 200 consumers allegedly told McGraw's office that Capital One hit them with hidden feels and issued credit cards with low limits.

Those consumers also "effectively got no credit" because they had such low limits and had to pay too many hidden fees, according to previous Gazette reports.

As part of the settlement, Capital One denies liability for the credit practices, the release states.

"We're pleased to have worked with Attorney General Darrell McGraw to resolve this matter which dates back to a time prior to 2006," Capital One spokeswoman Tatiana Stead said in the release. "We've since made significant improvements and look forward to continuing to serve our credit card customers in West Virginia."