Capital Onemy interest rate was increased from 7% to 17%

Review updated:

I have been a customer of Capital One for several years. During that time I have made all payments as agreed and have not been late or over the limit.

I opened the account based on an interest rate of 7.99%. This was not a promotional interest rate. I received a notice May 15, 2009 advising me that my interest rate would increase from 7.99% to 17.99%. beginning August 1, 2009. The new interest rate is levied on the EXISTING balance and any new charges.

If I do not accept the offer, Capital One will close my account, make the balance due and payable and report my account to credit reporting agencies as closed by lender.

In addition I was advised that their policy had changed toward past due payments. If I were to miss a single payment, my interest rate would increase 39%.

I assumed this was an act of usury but have since found that our government had not placed limitations on what a charge card company could charge.

I called Capital One to find out if I had triggered something that would cause my interest rate to increase to such a high level. I was told that the decision was a business decision and was not affected by my payment performance.

In a time when so many are defaulting on their credit cards, I am dumbfounded that Capital One would inflict such high rates on a paying customer. It is my intention to pay the account to zero and leave it open so that my credit is not affected by a decrease in credit availability.

I will not in the future engage in any business transactions with Capital One.

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  • Ke
      May 12, 2010

    I have two accts with Capital One and they have put me in a similar situation; by claiming that they sent me correspondence that would have freed me from their predatory credit card practices had I actually received it. This correspondence was supposed to notify me and give me the opportunity to Opt Out of their new terms which, if I chose to Opt Out, would 1) close my accts and 2) freeze my interest rate so they could not increase the interest rate over the balance of the time it took to pay off the debt.

    There was no way that I could have paid off my debt quickly enough and hang on the accounts to minimize the impact on my credit score. If they had actually sent me the Opt-Out as they said they did, I would have to opt out because I owed over $3k on each of the two accts. and the new terms would have given Cap One a hammer to hit me over the head with unlimited interest rate increases on the total amount that I owed.

    I sent them a letter disputing the fact that they ever sent me any opt-out notices and have refused to pay them one penny until this matter is resolved. They claim sending me a notice on 2/2/09 and 5/12/09 on purchases and cash advances respectively. By the time I found out what they were up to, the dates for opting out had expired and they would not give me the time of day concerning that issue. Despite my formal Dispute Letter on each of my two accounts, Capit One is trying to disregard my dispute they did not sent me a proper timely notice and are just mailing to me over and over again the terms for which the opt out had already expired and the new term now apply.

    I asked for proof of that they ever mailed me proper and timely correspondence about these important term changes and opt-out opportunity. They sent me a FORM LETTER that did not address the details of my dispute and have continued to pretend as if I'm just late paying on my two accts. They are the worst, and I refuse to pay them another cent of my very meager and dwindling finances until this is resolved.

    I would love to get involved in a class action suit against Capital One--I know I'm not the only one they are trying to bamboozle with these new terms. Macy’s tried to do the same thing, but they have been sensible enough to know that maintaining good faith with their customers and took the high road in resolving the dispute I had with them. Macy’s was terrific—they put my interest rate back to what it was before the Opt-Out and even reduced the interest lower until the debt is totally paid off.

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