Why Capital One SUCKS!
(I know the above graphic sucks, but I was too lazy and tired to mess with PhotoShop tonight)
JUST TWO DAYS AGO I was having lunch with a friend from work. I was BRAGGING about how great my Capital One No Hassle Rewards Card was. Great rewards, and an EXTREMELY LOW interest rate. Look very closely at the Purchase Rate and you will see that it is 4.24% APY. I told him about this and he simply didn’t believe me. But you see it there, in living color. I USED to tell everyone that Capital One was one of the best credit card programs available.
So what am I complaining about you may ask???
When I get home from work today, I’ve got a letter from Capital One, It reads as follows:
“Due to extraordinary changes in the economic environment, we’re reviewing our existing credit card accounts. Having considered these economic conditions, your account’s 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 you Cash Advance rates. The following changes will be effective for all billing periods that begin after April 17, 2009″
My new purchase rate went from 4.24% to a whopping 13.9% and my Cash Advance rate went to 24.9%
Isn’t this a great way to reward some of your best long term customers. The letter does say that I have a right to decline these changes…but only by closing out my account.
I’ve got an amazing credit history and have had this card with a $20,000 credit line for a long time. I don’t have any balance on it, and I believe that I will be closing it…who wants to do business with a company like this…ECONOMIC TIMES ARE TOUGH, SO OUR SOLUTION IS TO SCREW OVER OUR BEST CLIENTS.
Looks like I won’t be buying any Capital One Financial stock any time soon. Who is running this company anyways?
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February 28th, 2009 at 4:34 am
LOL, you will find a ton of companies who will try to dupe you with more interest and fake bills. Got to be careful with these.
Make Money Online Tipss last blog post..Polaroid i1035 10MP Digital Camera
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February 28th, 2009 at 1:19 pm
Man – that really stinks! I am just waiting for my Citi Rewards card to do the same thing.
pfincomes last blog post..PFI Weekly Updates – February 24 (2009)
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February 28th, 2009 at 3:42 pm
They have to do what ever to survive this economic mess.
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Make Money Online Tips Reply:
February 28th, 2009 at 5:48 pm
But not at the cost of others!
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David Ainsworth Reply:
May 23rd, 2010 at 4:26 pm
They have created their own economic mess because of their greed and incompetence. They foolishly extended credit to people with bad credit. And that at exorbitant rates. Help me out here–they couldn’t or wouldn’t keep up payments at regular interest rates SO HOW ARE THEY GOING TO PAY 20%+ RATES? And now that the inevitable has happened, and these people have defaulted, the rocket scientists at Capital One have come up with the truly brilliant idea of gouging their good customers. I’m moving my balance to my Arkansas Federal Credit Union visa where the rate will stay at 4.75%. Fuck Capital One, I hope they go bankrupt and don’t get a bailout.
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March 1st, 2009 at 4:56 pm
Hmmm, maybe they could focus less on their catchy commercials and more on their business practices.
CC companies definitely need to be covering their backsides, but it sounds like they’re alienating some of their best companies.
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March 1st, 2009 at 4:56 pm
*best customers*
Blakes last blog post..Should Parents Pay for College?
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March 1st, 2009 at 5:57 pm
Geez, that’s a huge increase. I know economic times are tough now, but that’s still a lot.
Funny Quotess last blog post..Doritos (Super Bowl 2009)
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Almost Millionaire Reply:
March 2nd, 2009 at 1:56 am
The customer service rep on the phone told me that every other credit card company was doing or is going to do the same thing…THAT DOESN’T MAKE IT A GOOD IDEA THOUGH!
Almost Millionaires last blog post..TAM Interview
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March 2nd, 2009 at 1:54 am
@ Blake
I agree with you brother, you would think they would be bending over backwards to keep me as a customer, but what do I know!
Almost Millionaires last blog post..TAM Interview
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March 2nd, 2009 at 5:50 am
I got the same letter.
This makes me so mad … and it’s even worse for anybody who carries a balance. They give you the “option” to close your account, but only if you pay the entire balance.
Interest rates are at nearly all time lows, the banks just got billions of dollars from “we the people”, and yet they basically turn around and screw their customers … you know, the people who didn’t get a bail out.
… and we wonder why capitalism seems to be getting a bum rap here lately.
Todd
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March 2nd, 2009 at 2:22 pm
It’s sad how these companies about use their customers. Does anyone else remember the day where it meant something to be a regular customer? Now it’s just another reason to extort you.
Horace Browns last blog post..Keith Mitchell: After 7’s Untold Story
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March 2nd, 2009 at 4:34 pm
They don’t get called Crapital One for nothing …
Maria @ Residual Income Webs last blog post..How to Make Money with a Website: Niche Topics
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March 6th, 2009 at 12:33 am
I got the same letter, they suck! Thanks for bringing this to light!
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March 6th, 2009 at 1:29 pm
The trick with credit cards is to always pay the balance off before they are due and that way you don’t have to worry about any interest charges. That’s what I do, and the fact that I also use a card that pays dividends, in the way of points that can be converted to cash, means that the card works for me and not the other way around.
Sires last blog post..Punishing Those Who Do Not Adhere To The Comment Policy
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March 11th, 2009 at 7:02 am
Dude, you got caught in the great credit card whipping that many of these folks started laying on card holders in lieu of what’s coming next June. I know some other people who’ve gotten caught up in this type of thing also; it stinks.
I have a Capital One credit card, but because it’s a business card I’ve been spared the bump. However, that doesn’t mean it will never happen, so I’m holding my breath as I write this.
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March 16th, 2009 at 10:37 am
Thanks.. Interesting – and always important to be aware!
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March 16th, 2009 at 11:50 pm
nice post realy this is great we like to touch and see some articles like this
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March 17th, 2009 at 1:37 am
Wow! what an idea ! What a concept ! Beautiful .. Amazing
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March 21st, 2009 at 9:48 am
hey id like to talk with you about your blog. please email me – thanks.
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March 23rd, 2009 at 10:44 pm
I’m an indian working for capital one customer relations in Bangalore. Whenever u guys call ur call reaches us in India. You guys think we r stealing our jobs. But its ur american owners who are giving us jobs….. I completely agree with u guys. CapOne steals money. It has increased interest rates for most of its customers. The reason given is economy. Thats bullshit. The late n overlimit fee charges are $39 which is ridiculous. Their payment protection program is designed to squeeze money out of u guys. I’m sick of this company. I’m hunting for a new job. If u guys have any questions email me at ajay_1r@yahoo.co.in
By the way if there’s a guy called Alex answering ur call when u call CapOne its me!
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Almost Millionaire Reply:
March 24th, 2009 at 2:28 pm
ajay,
Thanks for reaching out, and for your honest evaluation of your company. Good luck with the job hunt! Let us know how it goes!
Best,
TAM
Almost Millionaires last blog post..How I Shaved $30,000 From My Family Budget
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March 25th, 2009 at 2:42 pm
I got a letter from my secondary bank (TD Canada Trust) telling me they were going to hike the rate on my personal line of credit by 4%! There’s no balance on my LOC right now, but that just ticked me right off.
I called my primary bank (CIBC) and asked for a line of credit and they offered me one with a rate of 1.5% lower than my other LOC’s original rate.
What’s really baffling is that TD came out nearly unscathed by the mortgage meltdown (being that they had stayed out it), whereas CIBC did not. Yet TD is the one treating me like an unreliable crook. Screw them.
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Almost Millionaire Reply:
March 25th, 2009 at 3:34 pm
Ya, you had a very similar situation. Makes you lose alot of customer loyalty, doesn’t it…thanks so much for your comment and for stopping by the site!
Almost Millionaires last blog post..Wisdom Teeth Advice
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May 7th, 2009 at 5:05 am
You did not need to pay off your CapitalOne balance in order to opt out. You could freeze the rate, but terminate the credit line. Having said that, this still is not justice.
I opted out on three accounts, but had to do this twice for each before they could confirm it. How convenient, three separate phone calls to opt out mysteriously not acknowledged. It required due diligence to make sure they processed the “opt out” availability.
The bigger issue: “By the people, for the people” has been perverted. Big money corporations use lobbyist for self serving agendas. Usery has been legalized. The strong feed on the weak. The public majority has lost their voice. Media conglomerates have been allowed to merge. Public radio is being stomped out. People are, in some cases willingly, trading their freedom for so called security. Freedom from responsibility is accepted. Conspiracy theories deceive on an even deeper level, as the half truths effectively take away hope from those that care.
So now what? Instead of “change”, how about just putting it back together? We have all allowed what made this country great, to be dismantled, a little at a time. One might say, “we can’t just put it back together, the jigsaw puzzle is larger, there’s more pieces…” I disagree, morality rings the same even as it did 2009 years ago. The tricky question is, how do we do this now, as the cards have already been stacked. Well, thank God for a higher power, as good IS stronger than bad. Keep love in your heart, hope in your strategy, and faith in your convictions. Keep balance, as we cannot control all that is around us. Greed is a natural human trait, and its drives capitalism. Without balance, greed will overtake the purpose we take advantage of it for.
I want comments, as I’m far from knowing how to effectively implement the tenants of my beliefs. I still believe in America, we need to take back our government.
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May 7th, 2009 at 12:02 pm
Tony,
Thanks for the comment! You have a powerful voice, as it rings out even in your writing. Stay strong in your beliefs brother, becuase truth is truth!
Blessings,
-Brandon
The Almost Millionaires last blog post..How to deal with Employee Theft
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May 19th, 2009 at 3:22 am
Brandon, thought I’d mention that I got the big letter today. My rate is jumping from 15.9% to 22.9%, if I agree to it. Have to think about this one, but I guess even business cards aren’t immune, eh? Heck.
At least I have until August to think about it.
Mitchs last blog post..The Skinny On Credit Cards – A Review
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The Almost Millionaire Reply:
May 19th, 2009 at 11:24 am
And let me guess…if you don’t take the rate jump, you are required to pay off your card as soon as possible and the account will be closed. That sucks man! We need to start our own, “honest” credit card company.
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Mitch Reply:
May 19th, 2009 at 1:23 pm
Actually, there is no “soon as possible” clause on it, just that it will be closed and no new transactions will be allowed, which of course makes sense.
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The Almost Millionaire Reply:
May 19th, 2009 at 3:30 pm
Well Mitch, I hope you weren’t carrying a balance on that card or planning on carrying one in the future. 22% interest is an impossible number to justify for any type of usage. This card may be worth tossing into the tiolet!
The Almost Millionaires last blog post..Tips for starting a business in Michigan
May 19th, 2009 at 6:31 pm
Yes I am, but if I cancel before August, it freezes at the rate it’s sitting at right now.
Meanwhile, today Congress passes a new credit card bill, but it doesn’t go into effect until January; I mean, what the hey? Why bother, since the other one goes into effect next July? They just can’t get it right!
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May 21st, 2009 at 4:59 am
Guys, this is ajay here. I’m still working at capital one. Watch out for the new hike in interest rate for millions of customers. Capital One is doing this to make as much money as possible before the law stops rate hike and hidden fees… Any questions email me at ajay_1r@yahoo.co.in
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The Almost Millionaire Reply:
May 21st, 2009 at 12:13 pm
Thanks for the heads up Ajay! Nice to know that someone at Capital One is looking out for the customer.
The Almost Millionaires last blog post..Tips for starting a business in Michigan
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May 21st, 2009 at 6:55 pm
Just got my rate hike notice from Capital One yesterday. I carry a substantial balance on my card and for fear that my rate increases would spike my monthly payment amount, I opted out today. I know that this will affect my credit score, but this is not important to me. Capital One is my only card and they have rewarded me (until yesterday) with a low 4.3% APY. Now they want to triple it. Nope, not for me. My question is, with no credit extended to me after the opt out, does my monthly balance always show as “maxed out”, and if so, does each finance charge added put me “over my limit”? Also, will my monthly minimum payments remain the same after the opt out?
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The Almost Millionaire Reply:
May 22nd, 2009 at 1:32 am
Eddy, I wish I could answer those questions for you…becuase if I could, I would have probably made a better decision with my card. I probably should have maxed out my card to take advantage of the cheap money if it wouldn’t have hurt my credit score. Keep searching online, hopefully you can find some answers that help you muddle through the waters.
The Almost Millionaires last blog post..Tips for starting a business in Michigan
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June 2nd, 2009 at 2:37 am
Wow, this is insane… I also received my notice. I was on an introductory rate of 0%, so I knew my interest would naturally go up, but not this soon and not to 17.9%!! I have never maxed out my credit line, and have always payed MORE than the minimum, never late. What a way to reward me, eh? I noticed that Eddy asked about the effects of opting out with a balance… Does anyone have any insight on this? I am also interested in knowing if I should opt out, and what terms I should expect (will the minimum payments remain unchanged, etc.)
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June 29th, 2009 at 7:27 pm
Hi, I can
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June 30th, 2009 at 1:57 am
On Friday I canceled my card finally, before the August deadline. When the lady asked me why I was doing it, I told her it was because they were jacking my rate up to 22.9%. She said it wasn’t personal, that they were doing it to everyone; that makes it better?
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Sire Reply:
June 30th, 2009 at 2:33 am
Atta boy Mitch, that’s kicking em where it hurts
If more people were to follow your lead I reckon they’d be changing their policy pretty quickly.
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Mitch Reply:
June 30th, 2009 at 2:45 am
I hope so, Sire, but I get that feeling that, based on what Todd said below, more of these companies are going to keep jacking the rates up on the people who remain subscribers.
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Sire Reply:
June 30th, 2009 at 2:52 am
Which is exactly why people should follow lead. The competition in the market should be pretty fierce right now, all it takes is taking the time to find the right one.
June 30th, 2009 at 2:22 am
Fortunately, I was recently able to get a new card from USAA with 0% on balance tranfers for a year … with the rate staying at 6% for another 6-8 months beyond that because I’m deploying to Iraq again this fall.
The limit was high enough that I was able to transfer all of my balances … which enables me to tell several of my old credit card providers to “go jump in a lake”.
I did have an issue with Capitol One … they’re gone.
But even worse, was Chase, after they bought WAMU. They raised my rate from 9.9% to 23.9% … even though I always made more than the minimum payment, and was never late.
When I called to ask why my rate went up, they sent me a letter stating that my rate was raised due to “not enough retail activity”.
Chase also raised my mom’s rates in a similar fashion. But she happened to get an “overly honest” rep on the phone when she called. In response to the question of why her rate went up, my mom was told …
With the bad economy, causing people not to spend/borrow as much, we have to raise rates to make sure we still make money.
Classic.
Todd
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July 3rd, 2009 at 2:10 am
@Sire and @Mitch
I think the answer is for someone with some common sense to start a new credit card company that is focused on the customer and doing the right thing. Pipe dream, unless I figure out how to do it! Michigan could be the new credit card capital of the world!
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July 3rd, 2009 at 2:16 am
Can’t see why you can’t give it a go, all you need is some financial backing.
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Mitch Reply:
July 3rd, 2009 at 2:18 am
Yeah, some financial backing of at least 15 billion; I’ll make the phone call later. lol
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July 22nd, 2009 at 11:38 pm
About a year ago I utilized a balance transfer offer from capital one. I accepted it over the phone (mistake #1) for 0% for 18 months. I was like wow that’s great! I figured out exactly what my payments would need to be to get it paid off before the interest started, and have made those payments on time every month.
Funny thing happened…. this month when my bill came, there was interest charged to my account. Suddently my 18 months @ 0% became 12 and capital one has no record of me ever having 18 months. So, I went and looked up all the documentation that they send out after you complete a balance transfer and how ironic… the one thing missing is the period for which the 0% is good. Isn’t that convenient for them. I paid the balance off in full, and vow to never use the company again.
I am so done with this company. The customer service was absolutely terrible. They would not budge on the current month’s finance charges (I’ve never had this type of problem before with them or any other card company). They absolutely do not care if they lose customers. It won’t be too much longer and this company will be in the crapper just like all of the rest; it probably is already as money hungry as it appears they are! And, after reading all of the complaints online and the crap they pulled today. I honestly can’t stand the banking / credit card industry.
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September 16th, 2009 at 12:19 am
Yeah, CapitalOne really sucks. I just got declined for a low rate line of credit with them, funny thing is I have great credit. I guess they only like to lend to people with lower credit scores under predatory credit lending tactics where they can charge high rates like you mentioned above. If they mail me one more marketing letter I’m going to snap
CapitalOne – #fail #fail #fail
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September 17th, 2009 at 6:22 am
Unfortunately it is not just Capital one that is doing this. Most banks are. Because they have been taking extreme risks and were caught over leveraged with their pants down. Even consumers that have never been late, have stellar credit and are a great credit risks are getting letters like this from all kinds of banks. It just goes to show the importance of having a credit card for convenience but you can not come to rely on them as an emergency cash account. Because the line of credit can be taken away at any time.
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Damon Day Reply:
September 17th, 2009 at 6:27 am
the commentluv pluggin doesn’t seem to be working. Trying again to see if I can get it to locate my blog. It doesn’t seem to do it automatically or show an error or anything, just doesn’t come up. And yes I did check the box
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October 16th, 2009 at 11:32 pm
May God forgive me. Capital One has been stalking me for several months, or maybe over a year. Capital One issued me a MasterCard, I had no credit, and was living under disability benefits. In fact I had no education about how to use a credit card. I just used it, until it’s limit was over. My father, my former roommate, and just recently my church buddy, all 3, told me to ignore them and their harrasing over $700 debt. I owe them, for spending their approx. $300 limit. Since their collection agency failed to provide any proof that I even applied for a CapitalOne MasterCard, I’ve decided to fail to provide them my change of address, and new phone number. They don’t have my bank acct. number, and their collection agency has costed them money out the whazoo to pick on little old me. They’re history. Tough buns, granny!
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November 5th, 2009 at 5:03 am
One year ago my Apr was 9.9% now it is 29.9% raised for no reason, just as they did thousands of others, We’re being squeezed by a mafia style financial system
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February 7th, 2010 at 4:40 pm
Insult on top of injury; Financial rape by Capital One.
Capital One jacked my interest rate to 29.9% along with most of my other credit line suppliers. Business virtually dead, had to liquidate, declare bankruptcy. Capital One sends me a 1099 at tax time saying that the discharged balance should be considered income to me. THIS IS HARRASSMENT!!! According to tax code, the debt cannot be counted as income when the debtor is insolvent. By definition, a ch 7 is granted when the debtor is insolvent and all appplicable assets have been liquidated. Capital One tries to advertise as though they’re the good guys, when they’re just as scummy or worse than any other lender. Filing the 1099 is just plain harrassment on the back end.
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February 16th, 2010 at 10:29 pm
FANTASTIC! Capital One is still pulling that bullshit stunt, as of Feb 2010.
I’ve been a cardholder for 13 years .. and my recent statement saw my APR move from 4.95% to 15.9% in one felled swoop.
Like many of you, I always pay on-time and (many times) more than the Minimum Payment amount.
Regardless, I placed a call, thinking they would value my long-standing relationship. After sitting through 7 minutes of the Phillipines-based rep’s SCRIPTED banter of WHY I should bend over, take it in the ass AND apparently like it, she concluded by saying there’s nothing she can do about it at this time. She did, however, say she understood my dismay. Wow, I felt better immediately.
Best bet is to pay off the card, either with cash or transfer to a more stable company like American Express (good deals if you have great credit).
http://www.capitalone.com SUCKS!
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April 28th, 2010 at 8:16 pm
I work for them and would have any of their debt products – credit card, loans of any kind, etc. I work in a unique group sheltered from some of their political crap, but who knows how long that will last.
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May 2nd, 2010 at 2:52 pm
I got the same screwing from Capital One. All my payments have been on time, and usually early. Yet my purchases rate was raised from 4.95 percent to 15.9 percent. This is NOT because of any “extraordiary” economic situtations, however. It is because foolish and greedy Capital One loaned money at high rates to people who were bad credit risks. Now that the inevitable has happened and these people have defaulted, Capital One’s solution is to loanshark its good customers. I plan to move my entire balance to my credit union Visa at 6%. My credit union is conservatively managed and has not experienced the EXTRAORDIARY problems of Capital One.
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May 8th, 2010 at 3:33 am
LOL!!!!!!!! u bunch of sillys firstable u think that u r the the most intelligent persons in the planet but u r not more than absent-minded persons who dont have enough time to check your statements much less to read the small letters on your contracts and after this you call to try to do some thing about it when the time frames had expires and there is no way to reverse what u accepted first a company like capital one and many others r not going to take the risk to do something ilegal everything that they make is strictly legal.
here is an advise check your statements read it from the beginning up to the bottom there is all the information that u need and the most importat thing be smart the name says it its a credit card not a debit!! pay in full in this way u r going to avoid the interest charges (u r not to pay a dime to the bank)play with your closing date and make purchase before this date like this you’ll have more time to make the payment, take advantage of the promotions of balance transfer at 0% but only if u truly know that you’ll be able to pay the full balance before the end of the promotion, pay on time avoid fees,and if u have one ask to be remove they can always remove them,and another tip all the companies had like $10 dollars courtesy you just have to ask!!
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The Almost Millionaire Reply:
May 8th, 2010 at 6:00 pm
Kate,
Thanks for the tips. I agree with you, it is important to read your credit card agreement and statements top to bottom…but in the real world, it is hard to find time to do that.
I would suggest that Capital One and other credit card companies JUST MAKE IT EASY. Clearly lay out the terms and conditions, and be fair. To this day I’ve never been contacted by Capital One and told why my rate went up over 200%.
All they had to do was honestly tell me why.
-TAM
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May 24th, 2010 at 1:01 am
To all you upset and frustrated, former capital one customers.
WHERE IS THE BEST CREDIT CARD DEALS NOW?
WHERE ARE YOU TAKING YOUR BUSINESS NOW THAT CAPITAL ONE HAS GIVEN YOU THE SHAFT?
Please share!
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May 27th, 2010 at 8:30 pm
I Hate cap one!
what a sucky card 18% and oh can i screw you with more fees etc? would like a foreign poerson to not speak english and really confuse you?
i called them today i had sent payment to pay it off and then i had sent the minimum the following day, justt o make sure that it was in full, the a holes after i called them said, well we are crediting your account $10 not the full $15 as even though you paid it off in full there was interest. WHAT??
i pay it off and you charge me interest on what? so i used every f word and gd word on themj i could and i said you need to find a job so that you can feel like a real man when you go to work.
thanks for this blog
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June 17th, 2010 at 4:00 pm
How about a 10% penalty for 1 day late?
My son is is Afghanistan and it takes a day or two to transfer the money from bank to bank… but 10%??? give me a break!
Capitol One SUCKS.
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June 27th, 2010 at 11:26 pm
I’m so glad I payed off my Cap 1 credit card and shredded it. I wish that company would shut its doors they are crooks.
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July 19th, 2010 at 11:12 pm
Since the 1930s, U.S. banks were the flagships of American economic might, and emulation by other nations of the fiercely free-market financial system in the United States was expected and encouraged. But the market turmoil that is draining the nation’s wealth and has upended Wall Street now threatens to put the banks at the heart of the U.S. financial system at least partly in the hands of the government.
The government’s about-face goes beyond the banking industry. It is reasserting itself in the lives of citizens in ways that were unthinkable in the era of market-knows-best thinking. With the recent takeovers of major lenders Fannie Mae and Freddie Mac and the bailout of AIG, the U.S. government is now effectively responsible for providing home mortgages and life insurance to tens of millions of Americans. Many economists are asking whether it remains a free market if the government is so deeply enmeshed in the financial system.
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