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Capital One / interest rate increase

1 United States Review updated:

On 4/28/09 I utilized a check that Capital One provided in the amount of $13, 000. I called to verify that the rate that would apply to this was 7.99 % prior to using the check and was assured that it was for the life of the balance. Today I received a notice in the mail from Capital One that they were going to increase the rate to 17.9 %. I called and spoke to Bernard an Accounts Supervisor, employee reference number, ADC418. He informed me that the APR for the $13, 000 would increase effective 8/1/09 to 17.9%, which reflects 14.65 plus prime. I informed him that this was unacceptable and I have always been in good standing with the company. He indicated that was why the company sent me notice. I called another one of my credit card companies the other day and was told the APR would be 8.99 %, or 5.74 plus prime. Bernard went on to say how Capital One was still trying to do business in this economy. We used the money to purchase a travel trailer. The US people have been asked to stimulate the economy. We have done so, my husband and I both work full time and are considered upper middle class. We chose to utilize this check because the interest rate was lower than that offered at the RV dealer. This choice hss come at a great expense if we do not pay Capital One back prior to 7/31/09. Do I have any recourse?

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  • Tx
      22nd of May, 2009
    0 Votes

    If you don't want to accept the change in terms, you should be able to close your account and still be able to pay it off under your current terms. You would not have to pay it off by 7/31/09. But if you do not contact them and tell them that you are going to close your account because you don't accept the terms, be prepared that after 8/1/09, your interest rates will go up. You should have gotten something in the mail about a change in terms. They may have given you a deadline to respond. I've learned not to ignore those notices. I have since closed my Capital One account because of an increase in terms that was not acceptable to me either.

  • Jo
      23rd of May, 2009
    0 Votes

    yes cancel your account and you can pay it off at the previous terms.

  • Wh
      24th of May, 2009
    0 Votes

    Is the 7.99% your normal purchase interest rate or is the 7.99% a special rate just for the check that you used? If it's a promotion, the rate shouldn't go up. I've gotten rate increase notices for BOTH of my Capital One accounts, a day apart from each other, and they both say, "Please note that this rate does not affect any special transfer, introductory or promotional rates unless or until they expire."

  • Pa
      10th of Jun, 2009
    0 Votes

    I also received a check. Actually I was surprised because I was in collections with Capital One and paid off the debt in March 09. On June 6 I received a check from Capital One for over $500.00. I called and fax to see what the check was for, but Customer Service has no idea. After reading this I am glad I did not cash the check. What a SCAM. Read on another site that a person received the same sort of check, cashed it and they reopened a closed account to get the money back and charged her interest.

  • Ca
      12th of Jun, 2009
    0 Votes

    This happened to me as well.I have never been late or gone over my limit. I needed a balance transfer and was offered a 4.99 fixed rate by Capital One. I took it I never used the card except for the transfer. Well much to my surprise my rate change happened this billing cycle. I thought it was mistake. My rate went to 14% I called one Sat morning and was told I UNDERSTAND by several representatives but there is nothing we can do.
    That I should be happy that my rate was 14% and not higher. Finally I got a supervisor and I was told that since I did not reply by April when a statement was sent out in Feb that my rate changed and that was final. I never received this so called statement everything I do is online. I was told that they sent it via my physical address and I probably lost it. When I complained telling them I am customer in good standing they did not care. I was told that because of the economy they changed the rates, that I was notified, and that was that. I could go to a different company if I wanted to.
    I could not believe it I called again, emailed, even had a so called manager call me on the phone and again was told I UNDERSTAND I even had one representative tell me I'm a single dad and my rate went up 24.99?!?!?!? I can't wait to close this account.


  • Sh
      18th of Jun, 2009
    0 Votes

    I too am completely in shock by the lack of disregard and disrespect I was given by Capital One after they increased my rate from 4.8% to 15.9%. I am a perfect customer of about 3 years who uses my card on a daily basis and has never been late on a payment. I typically would pay off my (usually very high) balance each month. Note that banks (credit card issuers) make lots of money off of us credit card users by charging their merchants a percentage of our usage. So, them saying they make no money off of us "convenience" card users is an outright lie. I feel bad now for the small business owners who had to pay fees to Capital One for my usage.

    When I called general customer service they explained that due to the economy they had to make a business decision that will impact millions of customers and that there was absolutely nothing he or anyone could do and since it was after 11PM CST I would have to call back tomorrow. The people who have the authority to reduce the rate are no longer available for the day was his next response. I called back the next day and talked to one of those so called Senior Supervisors at a different number that I was given by customer service the night before and I once again described my dissatisfaction in a calm voice. After being talked down to and him saying if I paid my balance each month I wouldn't have to worry about the rate anyway and that I should take my $10, 000 balance and transfer it to another card that offers a great balance transfer rate. I asked what my incentive would be to stay as a Capital One customer and he had nothing.

    My Discover Card issues cash back (I have $150 so far). My Chase card offers flight miles (I have around 30, 000) and I get points for gifts with American Express (over 30, 000) and Citibank (about 10, 000). I said my incentive to use Capital One was for the lower interest rate (I had 4.8% or lower the entire time I was a customer) and with that now up to 15.9% I have no reason to stay. So, with nothing to offer me and him telling me he was "the top of the food chain in the Call Center" and that there was nothing he could do and nothing anyone would EVER be able to do, HE decided my time was up on the call. He then told me that there were other calls in the queue and that he had to go and hung up on ME. I am amazed that this company would let go such a great customer with an even greater future potential by an uncaring, disrespectful jerk like that. I had to actually call back to close my account and that is exactly what I did. I transferred my $10, 000 balance to Bank of America at 0% for 6 months with no transaction fee.

    I understand the banks are suffering too in this tough economy, but so dearly are the consumers. So, instead of sending a passionate personalized letter explaining the need to raise interest rates, they send an impersonal and almost threatening in language change of account notification brochure. Did Capital One ever hear about targeted and segmented communications? Do they even know how to communicate properly to their customers when making such impactful changes to their customers accounts, especially their best customers? although I agree that no customer, no matter how delinquent they are, deserve this type of treatment, the "good and best" customers deserve more. The power of personalization goes a long way and if they would have planned their communication strategy about this with a legal sized letter with a thoughtful explanation and understanding of the hard impact this will have on many, the severity of these changes wouldn't seem as bad and we wouldn't have been so offended. They treat their consumers who are also struggling in these hard times by rewarding them with disrespect and a rate increase of 3X higher. Unbelievable!

    This was a show stopper for me and my husband. I have the power of word of mouth and so do you, so don't ever bank with Capital One ever in this lifetime and make sure you let everyone and anyone know and they will follow suit. Capital One's logo is "What's In Your Wallet? Well, Capital One, it's not your card!

  • Br
      9th of Jul, 2009
    0 Votes

    You said it well. I had the same experience. Is anyone going after these guys ??

  • Ne
      20th of Jul, 2009
    0 Votes

    Just bought a Chevy Avalanhe, payment due 30th each month they already calling and today is the 20th

  • Ta
      19th of Aug, 2009
    0 Votes

    Same experience here. My husband and I were good customers with a great payment history and credit rating. They actually thanked me for being a platinum member before telling me they couldn't change the rate back, even if I closed the account! I realize I missed the deadline, but shouldn't I still be able to close the account and pay the original interest rate incurred? Is it legal for them to change the rates for existing charges that were made under a different interest rate agreement if I no longer wish to do business with them?

  • De
      19th of Oct, 2009
    0 Votes

    I know of a company that can settle this debt down to about half of what you currently owe. Send me an email to

  • Tx
      19th of Oct, 2009
    0 Votes

    Why is it that my credit score gets dinged if I close an account because these bloodsuckers want to raise the interest rate and I won't accept it?? How messed up is that??

  • Jd
      18th of Feb, 2010
    0 Votes

    Well, today, Feb. 18, 2010, I found out that Capital One is taking my fixed rate from 10.9% to 17.9% and I always pay early and more than what is requested. I called their Customer Service and they said there was nothing they could do but send me some options in the mail... well one of my options is to pay off the card, have it closed and never use anything related to them again. I guess I will utilize one of their competitors cards in the future. :-)

  • Ej
      21st of Feb, 2010
    0 Votes

    I just received my Capital One credit card statement and found that my minimum payment had just jumped from $89 to $128 a month on a $5000 balance. On further investigation discovered that my APR % rate had jumped from 9.9% to 17.64%. Never missed a payment, always paid more than my minimum, good customer for over 10 years, how’s that for thanks. When I called them I was given the old “tough decisions in tough economic times”, song and dance. Always told everyone that Capital One was a great company to deal with, guess I’ll have to re-think my customer loyalty.

  • Jo
      24th of Feb, 2010
    0 Votes

    I won't bore everyone with my account details, but the same thing happened to me. I transferred a large balance to Capital One at what I thought was my usual rate of 10.9%. I was shocked to open my next statement and see a new rate of 17.9%! I can't pay the new min fee now and will likely ruin my 750 credit score and default on this account. I'm extremely upset and frankly embarrassed that I fell for this loan sharking scam!

    I wrote a letter via my State Senator's web site AND directly to President Obama. I know that I'm only one person, but if there are tens of thousands of us (and I'm sure there are), please take 5 minutes and write a complaint to your Senator, Congressman, and President.

    Screw Capital One.

  • Tx
      24th of Feb, 2010
    0 Votes

    Johndl, you are right. We should write letters to our Senators, Congressman and President. I always pay my credit cards on time and now those companies that I have been a loyal customer to, have tried to raise my interest rates. Notice I say tried. I know it will ding my credit score by closing my accounts but that's exactly what I did. I WILL NOT BE HELD HOSTAGE BY A CREDIT CARD COMPANY. They will simply no longer get my business.

  • Re
      2nd of Aug, 2010
    +1 Votes

    They send so many promotional and terms disclosure documents I didn't notice the rate change either. The issue isn't notification it's the more than doubling the rate for borrowers who have maintained impeccable history with the card. Sure I could now close the card but have you tried to apply for a new card lately? I have a VERY high FICO but am carrying a balance on this card. Due to credit usage no one will issue me a new card even if I submit a balance transfer with the new application. I have stopped using the card and hope other follow suit.

  • Dk
      23rd of Nov, 2010
    +1 Votes

    After more than 10 years with Capital One, and after having paid them off TWICE, and having paid them on time always my interest rate was jacked up to 17.9 percent!!! My statement said my '' introductory rate '' was over. I guess I had an introductory rate for 10 years???!!! If I wasn't trying to get approved for a mortgage, I would close this account this instant. I feel so trapped by this. I don't ever remember being informed of a rate change. In fact, I went through my whole credit card file, and there is NOTHING there about it. What I did notice, however, is that any change in terms they send out do NOT include any dates. I have some that have been in there for a long time, but couldn't tell you when they were issued. Cap One will NEVER get my business again. I got screwed by GE Moneybank years ago as well, and they don't get my business anymore either. Stay away from BOTH!!!

  • Dt
      17th of Mar, 2011
    0 Votes

    I'm in the same boat as D.K. I've been with CO over 12 years, never late on a payment, paid them off twice before and now I'm slapped with a 17.9%. I don't recall them sending me anything in the mail stating this was going to happen or I would have closed the account at my lower rate. I even tried doing a balance transfer to be paid to myself and then I applied it back to the card so I could get the 0% for 6 months (even the 3% fee is less than what I'm paying in interest each month) but they are charging me the 17.9% on my whole balance still. Their excuse is that they didn't receive the check from the bank until after it expired which is a lie. CO approved it within a few days and it was well before it would have expired. So now I'm fighting this battle and they are not bending on lowering my rate at all.

  • Ri
      15th of Apr, 2011
    0 Votes

    Been with Capital One for over 10 years. Carried balances every now and then but usually pay it off each month. I spend over $1000 per month. Never ever missed a payment and even when I can't pay it off completely, always paid extra. Never carried a balance longer than 6 months. Capital One has raised my rates several times and each time I can call them and they lower it back down. This time (March 2011), my rate goes to 17.9%, call them again and they won't lower it. Tell me 15.9% but isn't good enough. I tell them they are offering new cards for 10.99% to new customers with excellent credit (I have a FICO score over 800) so I will settle for that (my rate was 7.9%). They won't budge less than 15.9%. I tell them then I will throw their card in the drawer and never use it again (don't want to close it because might lower my FICO score) and close my Capital One Money Market account that has over $10, 000 in it. Nothing matters, they just don't care. Everytime I call, I got to speak to folks in India which frankly I hate with a passion. I can't tell if Capital One doesn't care or those Call Center folks in India don't understand or can feel what Americans are going through with the company they work for. I ask for a supervisor but told they are all busy. It just amazes me. Well Capital One is no longer in mine or my wife's wallet anymore. Moved my Money Market cash and will try one more time, hopefully showing them that I am serious. Doubt anything is going to help...

  • No
      22nd of May, 2011
    0 Votes

    Richard D. Fairbank
    Founder, Executive Chairman, Chief Executive Officer and President, Capital One Financial Corp.
    Age Total Calculated Compensation This person is connected to 8 board members in 2 different organizations across 4 different industries.

    See Board Relationships
    59 $14, 859, 688
    As of Fiscal Year 2010
    Mr. Richard D. Fairbank founded Capital One Bank and serves as its Chairman and Chief Executive Officer. Mr. Fairbank co-founded Advocate Financial LLC in 1998. Mr. Fairbank founded Capital One Financial Corp. in 1988 and has been its Chief Executive Officer since July 26, 1994. He has been an Executive Chairman of Capital One Financial Corp. since February 28, 1995 and its President since April 24, 2003. He has been Head of MasterCard's U.S. region since 1995. He serves ... as Chairman and Chief Executive Officer of Capital One Auto Finance and Chairman of Capital One, F.S.B., two of Capital Ones primary lending subsidiaries. Mr. Fairbank began his career in 1981 with Strategic Planning Associates, spending a total of seven years consulting in different industries. Based on his belief that information and technology would change the world of consumer marketing, he developed the idea that would ultimately become the hallmark of Capital One®-its Information Based Strategy (IBS). He serves as Chairman of MasterCard International, Inc. He served as Chairman of MasterCard’s U.S. region at MasterCard Worldwide Inc. from March 2002 to February 2004. Mr. Fairbank has been Executive Director of Capital One Financial Corp., since July 26, 1994. He serves as a Director of Capital One's three principal subsidiaries, Capital One Bank the "Bank", Capital One, F.S.B. the "Savings Bank" and Capital One Auto Finance Inc. "COAF". He served as Director of Mastercard Incorporated since 2003. He served as a Director of MasterCard Worldwide since 2003 and served as Director of MasterCard's U.S. region from March 1995 to February 2004. Mr. Fairbank served on MasterCard International's Global Board of Directors. He recruited fellow SPA consultant, Nigel Morris, to help find a sponsor for IBS in the credit card industry. He has received many honors and awards including being named Best Chief Executive Officer in specialty finance by Institutional Investor magazine and Business Leader of the Year by Washingtonian Magazine. Mr. Fairbank has often been recognized for his community and industry leadership, including his 2008 appointment to the President's Council on Service and Civic Participation. He also was honored as a 2008 Washington Business Hall of Fame Laureate and was named "2006 Banker of the Year" by the American Banker. Mr. Fairbank graduated with a bachelor's degree in economics from Stanford University and received an MBA from the Stanford Graduate School of Business.

    Read Full Background

    1680 Capital One Drive
    McLean, Virginia 22102

    United States

    Phone: 703-720-1000
    Fax: 703-205-1755
    Board Members MEMBERSHIPS*
    Founder, Chairman and Chief Executive Officer
    Capital One Bank
    Founder, Executive Chairman, Chief Executive Officer and President
    Capital One Financial Corp.
    Former Director and Director MasterCards U S Region
    MasterCard Worldwide, Inc.
    Former Director
    Mastercard Incorporated
    Bachelor's Degree
    Stanford University
    Stanford Graduate School of Business
    MasterCard Worldwide, Inc.
    Stanford University
    Capital One Bank
    Stanford Graduate School of Business
    Mastercard Incorporated
    Advocate Financial LLC ANNUAL COMPENSATION*
    There is no Annual Compensation data available.
    Restricted Stock Awards $8, 250, 029
    All Other Compensation $100, 637
    Exercisable Options 6, 610, 600
    Unexercisable Options 2, 124, 587
    Total Number of Options 8, 735, 187

    Total Annual Cash Compensation $100, 637
    Other Long Term Compensation $8, 350, 666
    Total Calculated Compensation $14, 859, 68

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