We’re getting complaints that Capital One has raised interest rates across the board for its customers. One reader says his wife’s rate went from 9.9% fixed to a variable rate, making it about 15%.
“She called customer service, and after getting a “It’s a business decision that was a reflection of current economic conditions”, she finally got a manager who said that she had been getting these calls all day.”
Another reader says he got a white envelope from Capital One:
“Opening it up, I learned that Capital One has decided to increase APRs on purchases (and some other fees like on cash advances). The other fees I was not concerned with, but my APR is apparently jumping from the 4.99% I have been enjoying to an outrageous (in my mind) variable rate currently at 13.99%!!! This change is scheduled to occur on my September 2007 billing cycle. Now, I am still not carrying a balance at this point, but that kind of jump is ridiculous.”
Remember to open strange white envelopes from your credit card company! We know that some of you toss them right into the shredder.
This one you should open so you can see what magical new rate Capital One has in store for you.
If you do decide to switch to another card, leave your old one open if you can. The length of your credit history is an important factor in your credit score.
(Photo:taberandrew)
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Hmm, the good news out of CapitalOne is that their high-yield money market accounts went back up to 5.00% APY.
I just got my letter, I must say KUDOS to CapitalOne for designing such a colorful and clear, easy to read notice. Every credit card company always sends tiny leaflets with 6 or more pages, whereas CapOne delivered a very consumer friendly insert.
Also maybe I am lucky, but mine only mentions Late Fee, Return Payment Fee and OCL Fee as changing. Are there other letters?
@Helvetian: I got the same notice, with no mention of interest rate changes, only fees. Of course, I have no idea what my rate currently is (because I always pay in full and actually rarely use the CapOne card anyway), so it may already be high. I just tried to login to check my rate but for some reason banking systems are always down at night
I just got the same notice. They are changing my fixed 7.9% card into a variable with a starting rate of 15.9%. All I did was pay off my balance every month and they decided to raise my rate. I just cut up my card and am never going to use it again. Their loss.
In case you haven’t heard, Capital One has recently been increasing credit card interest rates for their cardholders. While it’s not unheard of for card issuers to raise rates if you engage in risky financial activities (universal default, anyone?)
Here is the address to dispute charges:
Capital One
Attn: Disputes
PO Box 85520
Richmond, VA 23285-5520
And the phone number to get an actual human is:
800‑548‑4593 (Press 0 to bypass)
don’t
carry
a
balance
and if you do…
switch
to
a
0%
card
Yes, I had the same increase from C1, HSBC was first, Chase second and now C1, I just 0 the balance, but keep them open.
It’s time to open another news item about Capital One and their insane crud. Its March 25, 2009. Lets open an old two year old thread.
Despite the fact I pay all credit cards in full every month and never had a late payment. I have learned they have sent out notices like the one to follow to many, many people.
Even if you have a super good FICO score, been a long time customer, Capital One sent notices they they are raising their rates to 30%. In my case that is a 20% increase. I suppose that $4billion in bailout from the gov wasn’t enough money.
I received an offer from Capital One to transfer higher interest rates balances to my Capital One account at a 8.9% interest rate. I transferred a balance and 2 months later received my statement telling me that my interest rate had gone up to 17.9%. I called and talked with numerous people at Capital One and they kept telling me that my credit was perfect and I had no late payments and was a valuable customer. This was just a business decision by Capital One.
I have now paid a 3% fee and hundreds of dollars in interest to transfer my balance back to my other credit card company.
How can they suck people in to transfer balances and then stick it to you legally???