Capital One — my interest rate was increased from 7% to 17%
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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