I've griped more than once about how Capital One has screwed with me the last two years, but this is the icing on the cake.
First, some background. I've had a $4,000 limit card with them for the last five plus years. During that time I have NEVER been late, NEVER been over the limit and probably carried a balance 70% of the time during which they could charge me 6.9% interest (I think that's what it was).
About a year ago they decided to raise it to 13.9%.
NOW I get a notice today that I have until March to accept new terms. As the letter states "at Capital One we are committed to providing valuable customers like you with open and honest communications".
It goes on to say
"due to extraordinary changes in the economic environment, we're reviewing our existing credit card accounts. Having considered these economic conditions, your accounts current purchase rate, and the length of time you've had this rate and account, we will be increasing your purchase rate. We're also raising your Cash Advance and Default rates."
If I accept these new terms my current balance and all future purchases will be subject to a rate of 22.9%!!!!!!
If I refuse these terms I can continue to pay the 13.9% rate until the balance is paid, but the account will be closed and no future purchases can be made.
After five years of making problem-free money off of me apparantly they want me to go away. WTF!
It is nothing short of an attempt to bend you over because they had a bad business plan on their banking side. It is nothing short of screwing the people because they messed up.
__________________
MM
That which does not kill me postpones the inevitable.
I know! It's insane. The sad thing is that at this point, they have the customer over a barrel. It is hard to get along in this world without a credit card at least for emergency purposes. The way they are raising rates is unconscionable.
__________________
MM
That which does not kill me postpones the inevitable.
I just thank God I don't have a big balance on the card.
I'll keep it with ZERO balance just for emergencies (which ironically is what they CLAIM they're afraid people will do yet they're pushing us into doing exactly that).
But I'm also firing off a nasty letter to them. Not that they'll care, but I'll feel better.
The great hope is that the economy will turn around and these companies will be back to having to compete for business. When that time comes you can tell them to kiss your shine-o Heino and move to another company that hasn't seen fit to screw you over yet.
__________________
MM
That which does not kill me postpones the inevitable.
A web search shows I'm not alone, but everyones being increased to different rates because of "these difficult economic times"...
Marcia of Picayune MS (02/19/09) I received notice yesterday that due to economic conditions, crisis, etc...that my interest rate would be increased to 17.99%. I opted out and my account will be closed. I have a balance and it will affect my credit score, but I won't pay that exorbiant fee.
Randall of Westcliffe CO (02/18/09) I have had and used two Capital One Credit cards. One I use for personal business expense (mastercard) and one I use for personal use (visa). The visa I have had for nearly twenty years and the mastercard for over 10 years. The mastercard carried an APR of 9.9% with Rewards and the visa carried an APR of 7.9%. I have never missed or been late on a payment and I usually pay well over the minimum payment due. My FICO credit score is 786.
This week I received a importaqnt notice of a change in terms on both of these accounts. Starting on my April 2009 billing statement these APR rates will both increase to 17.9%, more than double my current rate on the visa card. This notice states the reason as due to extraordinary changes in the economic environment. Also the cash advance and default terms are also raising. The financial industry in this country is the primary cause of this dismal economic environment. Besides making these card payments responsibly I have handled all of my credit responsibilities with the same diligence.
I beleive this predatory company is taking advantage of current conditions and are irresponsibly, greedily, working against its customers. If there is no penalty or restrictions to this kind of unwarranted action the population is at their mercy, which is little. I declined the visa card and will pay-down the balance as fast as possible. I hold nearly 200,000 reward points for a planned use for air fare on a future vacation so I will need to keep the mastercard current. I am enraged!
By my long term loyalty to this company I have neglected other company's offers of credit. In declining, and thus cancelling these cards I will have to acquire new lines of credit and build up the credit limits to comfortable levels over time. This company shows no loyalty to either its customers or the best interests of its country. They are predatory and show the ugliest elements of American capitism. I will never do business with anything affiliated with them.
Vicki of Kansas City KS (02/18/09) As so many others, I received a notice of change in terms. My rate was 5.9% fixed and it went to 15.9% variable. I have had my card for 14+ years and have paid it off numberous times from balance in the thousands of dollars. Not late and mostly paid over the minimum due. With a FICO score of 810, I am DISGUSTED and REVOLTED that this can be done. This country is in an economic crisis and it started with the financial industries. Our representatives should be making the new credit card law change effective IMMEDIATELY and not give an out to screw the taxpayers further.
I will not accept the new terms. I know this hurts all of our FICO scores, however, keeping this card open would damage all of our credit scores even more. I am on record with this as a formal complaint and request to be represented with all the other Capital One customers that have been taken advantage of.
I got notice that my Capital One was going up to 14%. I called and asked if they could lower it back down and the lady I talked to said "no, sorry, its everyone . . . even my own is going to that".
But then, yesterday, I get an offer in the mail for a Capital One business card for 0% for a full year.
If we already have you, then SCREW YOU! If you want to start a new account, WE LOVE YOU!
Yeah, A LOT of the stuff I'm reading online is saying the same thing Web. That you can go to the Capitol One site and get a better rate on a card than what they're offering customers of 5, 10, 15 or more years.
