We’re starting to think Capital One isn’t just hurting financially, but also throwing a temper tantrum about the new credit card legislation. Eric received notice that they’re converting his current fixed rate to a “promotional rate.” In January 2011 they’ll switch it over to an adjustable rate and hike it to 17.9% (it’s currently 9.9%). Erik has until July 28th to agree to the new terms or they’ll close the account on August 2nd, 2009.
They’re doing the same to his wife’s card. At least Eric and his wife have 18 months to look for an alternative place to take their business.
I’ve been a Capital One card holder for about 6 years and my wife has had a card on a separate account for about a year. Yesterday we both received a notice from Capital One that our Purchase and Balance Transfer Rate was being changed.
Beginning with the first full billing period after July 2, 2009 our current purchase rate will become a promotional purchase rate. Beginning in January 2011, our purchase rates will increase to 17.9% and become a variable rate, despite the fact we have a fixed rate on both cards now. The reasons given for this increase are our current accounts purchase rate, the length of time we have had the rate and accounts, and the challenging economic environment.
Seeing that my wife and I have different accounts, for different lengths of time, with different purchase APRs, it seems odd that those same conditions would apply to both of us. Looks like the fact they are bleeding money is the only real issue.
So basically my only options are to accept their new terms and conditions which take my APR from 9.9% to 17.9% making this card the one with the highest APR that I have by far (none of my other cards are over 9.9%). Or I can opt-out of their ridiculous demands by July 28th and they will close my account on August 2nd, 2009.
Closing our accounts, as I have learned on here, will affect my credit score as I’ll be losing $7,000 of my available credit and my wife would lose $20,000.
Must be nice to just screw over your customers and squeeze more money out of them whenever you feel like it. I just hate how the original agreement you sign with them really means nothing, since they can just totally modify your terms with them whenever they feel like it.
I’ll probably just end up keeping the card and just never using it and let Capital One eat the cost of maintaining my account. For being the “No Hassle” company, I find this quite the hassle.