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Capital One - 0% Balance Transfer Check / charged 23.63% finance charge

1 United States Review updated:

In July 2007 I cashed a 0% balance transfer check from Capital One, and each month since then have not only been charged 23.63% of finance charges, my principle balance even with the excess charges has not been properly credited. I have talked to account managers and senior account managers who have promised to correct this problem with written confirmation, and each time the problem only seems to get worse. After 3 months of payments in excess of $400, less than $30 has been credited toward the am0unt of the original transfer.

Is there anyone else who has encountered a similar problem?

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  • Su
      11th of Oct, 2007
    0 Votes

    I had a CapitalOne credit card in London - after two years of exorbitant interest charges and spiraling costs, I finally managed to pay off the balance and sent them the final cheque with a letter instructing them to immediately cancel my account. Two weeks later I moved house, and a year later moved again. Six months after THAT, I received a year's worth of mail from my ex-flatmate, stating that he was returning to Australia and would no longer deal with my debts... I thought, "what?" - got my mail, realized CreditOne were chasing me for ~ GBP#290. I rang them to query, and they explained that - despite me "closing" the account - they had continued to honor the monthly payments I had authorized another company to take from that card. Despite having also canceled that authority, which was a whole other problem. SO I had 18 months of monthly charges plus 18 months of late payment fees and overlimit fees, as well as 30% interest charges. I explained again that I had closed the account and refused to pay the additional charges - they asked me for my current address, "just so they could keep in touch", and again I refused, as I was no longer a current customer of theirs and had no responsibility to provide them with my details. It took 6 weeks of weekly phone calls for them to accept that I would not be paying the charges they had issued since I had officially canceled the account (luckily I had a dated copy of that letter), and even in desperation I would never ever apply for a card or any other credit with them again.

  • Ji
      17th of Feb, 2008
    0 Votes

    I received a special offer from capital One for a 0% balance tranfer with no balance transfer fee for 9 months. When I received the statement, the 0% was nearly 14% with finace charges building. When I called, they said this was not the terms of the offer....
    Now I need to spend alot of valuable time rectifiyng their mistakes.....Still fighting this....

  • Bo
      14th of Jul, 2008
    0 Votes

    This was a scam ran by Capital One. They had a 0% balance transfer statement that only applied to balance transfers after the initial introductory offer APR. In the terms they made up a new transfer called a special transfer which was applied a range of interest 14%-24% APR for balance transfers during the introductory APR. The purpose was to trick people into believing they would be getting a 0% balance transfer when in fact they would not. I would say you should try to leave Capital One as soon as possible as this is and was clearly a deceptive business practice.

  • Je
      26th of Jul, 2008
    0 Votes

    Would any of you be interesting in filing a class action suit with me against Capital One for their preditory practices on balance transfers?

    I, too, was given a balance transfer offer in February, 2008. I had to use the check enclosed or call them. I used the check. One the second billing cycle I started getting hit with a 14.99% interest rate. When I called, they said I had used the wrong check and that the check I used was at the 14.99% interest rate.

    When I told them that I had used the check they gave me with the offer letter I was asked, by Senior Account Manager "Frances", if I had a copy of the check and the offer letter. I could get a copy of the check, but the offer letter I didn't keep. She said unless I had a copy of the check and the offer letter they could do nothing for me.

    I went through five months of fighting them, with account managers making promises to rectify the problem only to have it pushed aside and more interest build, before I changed the balance transfer to another credit card I have. But, now instead of having a balance transfer that was supposed to be 0% interest for 18 months, I'm having to pay 4%. It's a heck of a lot better than 14.99%, but it's not 0%.

  • Ya
      6th of Dec, 2009
    0 Votes

    Very similar case happened to me where on August 6, 2009 I have taken on a 12 month 0% loan from capital one in which cost me $390 in processing fee as was displayed as a financing charge on my first statement after getting the loan.

    The following month I have noticed a $67.01 in financing charge on the second statement which I found strange but did not make so much of it as I was hoping it's a mistake and won't happen again and just didn't have the time to deal with it. A month later on my third statement of November of 2009 since the 0% loan I again noticed a finance charge of the amount of $133.58.

    After receiving my third statement and finance fee, I have decided to call them to find out why I'm getting these charges as I was hoping it's just a mistake which they would easily be able and adjust. After explaining my situation to the agent on the phone I have been told by her that Capital One policy is to charge a finance charge on balances with higher APR rate first. I explained the lady that I pay my full balance every month so there should not be any balance to pay finance charges on except my loan which was anyway at 0%. Then the lady explained to me that any payments that I am making are paid first to the 0% loan instead of the purchases that I have been making as usual on that card. I tried to explain to her my point of view that this doesn't make sense because base on this system I'm never going to take advantage of their offer and the only thing I have accomplished is paying them the $390 processing fee as well as start paying them finance charges which I didn't pay before. I also asked her to send me a copy of me agreeing to this loan type. She told me she will be sending over my agreement and I will receive it in the mail.

    A short time after my phone call with Capital One, I received in the mail a letter stating the following: (a copy of the letter is also attached to this post)
    Dear ***********:
    Thank you for your recent inquiry about the manner in which payments are applied to your Capital One® account. Capital One will apply your payment to pay off lower-rate balances before paying off higher-rate balances.

    We hope this explanation will help you better understand how we apply your payments. Our primary goal is to provide the highest level of quality service to you. If you have additional questions, please give us a call at 1-800-867-0904. Our Customer Service Representatives are available Monday through Sunday, 9:00am-10:00pm Eastern Time.


    Capital One Services, LLC.

    I guess they could not come up with anything on file that I agreed to these type of loan arrangement.

    To me this is a definite scam and if anyone is looking for a Class Action lawsuit partner, I'm in. Please contact me at my email address below:

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