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Capital One Credit Card Company / fraud business practices!

1 United States Review updated:

I am seeking to file a complaint against Capital One Credit Card Company for fraudulent practices. I have also contacted my congressperson and both California Senators in writing. I will also copy this complaint to all consumer websites (the internet is a wonderful thing), The Attorney General of Virginia, the Commissioner of Financial Institutions as well as CNN, Sixty Minutes, Primetime and anyone else I can think of who can speak out against this type of egregious behavior. I know it's hard for the media conglomerates to step forward and dig deeper when their advertising revenue comes from companies like Capital One. However, after watching some of the hearings in Washington last week against banks and credit card companies charging excessive fees to their customers, I felt compelled to finally express my frustration for the hard working tax payers of this country and to ask Capital One’s CEO, Richard Fairbank to stop abusing your customers.

For the past six months I have attempted to close one of my three Capital One Credit Card Accounts. My husband has one for business, I have a family use card and the one I’m attempting to close since October 2006, was my business credit card. I no longer have the business and therefore had no need for a third card. We have been Capital One cardholders for many years and have always enjoyed a low interest rate of 9.9% on all three of our cards, due to our good credit... until I attempted to close my business card in late October 2006. That’s when things changed.

On October 27th, 2006 I called Capital One and asked for a payoff on the the card. I promptly paid the balance. I received confirmation of payment. I then followed up once the check was cashed and asked that they close the account. They did not close the account. They continued to accept miscellaneous charges from Sports Illustrated Renewal, Amazon and now this month a Consumer Reports annual renewal notice. None of these charges was authorized or approved by me and all of these companies refunded me the money. However, as a result of these three separate charges, Capital One continued to charge me 28.1 % over the course of five months, until the time these money were refunded to me. I called Capital One and asked them to reimburse me for the finance charges and finally they did do that after three phone calls; it's not about the money, it's about the principle.

I have written a letter to Capital One and have made numerous phone calls to try and close account, to no avail. Today, March 16th, 2007 the account is still open, despite Capital One promising me on the phone they would not accept any more charges to my account. They must be making quite a tidy profit off of this practice: customer calls in to close account, take their rate up to triple what it was, let those monthly reoccurring charges flow in (because no customer can recall all of them), and Capital One has a huge revenue stream of profit coming in (thanks to the Actuary who figured this out).

Because I no longer have the card in my possession (I cut it up after my final payment) I cannot even access my statements online because I don’t have an expiration date and they can’t give it to me over the phone. I actually have to order a new card in order to get the expiration date in order to get online and review my statements. Today I called to ask for my last six months statements and I was told it was $3.00 per statement! It seems that every time I try to correct this situation, Capital One is charging me again. Now I can see why the CEO of Capital One, Mr. Fairbank, has made close to 500 million dollars over the past five years (that’s right, 100 million per year!). I’m appalled at the transparent and aggressive tactics used by the CEO, Richard Fairbank, to generate revenue and profits, at the expense of so many loyal customers. I wonder if Capital One shareholders would approve of such tactics knowing the CEO is consuming a large chunk of the profits via his salary?

My goal is simply to close the above mentioned account and have confirmation of this in writing. Today I spoke with two different customer service reps for Capital One Michael ID #QSJ941 and his supervisor Joaell ID #JKW464. Both informed me that Capital One cannot close an account until 30 days to make sure there are not re-occurring charges. After five years of having this card, this is a lot to try and remember. I couldn’t possibly remember what magazines I signed up for a year or two ago and what month they are about to expire. The lesson I learned from all of this is don’t use Capital One-ever!.

Sincerely,
Kerry.

Ke
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Comments

  • Wi
      10th of Apr, 2007
    0 Votes

    I have had a Capital One Credit card for many years, always been happy with an APR. of 4.99%, that is until the March 2007 Statement, it doubled to 9.90%, to start in April of 2007. I normally pay online, pay in advance & pay more than the minimum payment. I thought it was a billing error so I contacted Customer Service (note, there isn't really such a place at Capital One, it only serves "CapitalOne") anyway I talked with "Zoe", a rep. I told Her my problem, (she could barely communicate with me) she said it was just Company policy due to the slowdown in their business, I asked to talk to a supervisor, a person name of "Vicky" came on the line said, the same thing, I asked to talk with Her supervisor, she said she was the boss and I just had to accept it (the higher rate) that there was nothing I could do about it, and no one else to talk to... She said I was notified in February that the rate was going up, and that I had 'till 3/31/07 to opt out of their program. I went back to my paper statement and sure enough the notice was there... I read the notice wherein it says, "your new rate for "purchase balances", will be @9.90%... since all of my balance was a transferred balance and NOT a purchase,I thought that there was nothing I needed to do, as I was told in writing when I transferred these balances, my rate would be 4.99% 'till paid in full.

    Incidentally,their "opt out program,says you must agree not to purchase or make any more charges to your account and you can continue to pay off the account at your present rate,and when it is paid in full they cancel the credit card... is that really "opting out"??? When I asked if I could opt Out on this date 4/10/07, since I haven't charged anything in over two years,I was told by "Vicky", that it was too late., there was nothing I could do... not thats what Capital one calls,"CUSTOMER SERVICE", it's customer "NON SERVICE".

    I plan on writing the attorneys General of Texas and file a complaint, don't know what good it will do, but I'll copy to: My state Senator & My congressman, as well as any place on line that I can find...

    Thanks so much for letting me vent on your site
    Respectfully,
    Wm.O.Smith

  • Ma
      18th of Apr, 2007
    0 Votes

    I also am having problems closing out my Capital One account.

    I had to call them 3 times, the first time I was disconnected; the second time they said their system was down; the third time they agreed to close the account only after I threatened to file a complaint against them.

    Then they said it would take 30 days to close the account, even though there is a zero balance. After reading all the horror stories on-line about this same problem, I am concerned that the account won't be closed out. I guess now I have to wait 30 days to see what happens. What I am hearing is that Capital One slams you with "fees" and hikes your rates once you request closure. This has to be against the law.

    Thank you,
    Marilyn

  • Je
      18th of Apr, 2007
    0 Votes

    Wow. That's some shady business practice. My "4.99% fixed interest rate" jumped to 9.90% as well. I remember getting a letter for Capital One saying the rate was going up. I thought that was just for new purchases. I bought some furniture items for the house and found my entire balance jumped from 4.99% to 9.90%. I didn't know about this "opt out program" because I didn't take the time to read the fine print. I have a pretty good credit rating and get credit card mail all the time. If I took the time to read it all, I wouldn't have any free time. Had I known that the entire balance was going to nearly double unless I opted out, I would have done so. They should have made that perfectly clear on that jumbled mess of information they send out. I guess I should've done my homework. They pulled a fast one on me and I suppose there's nothing I can do about it now. I will, however, never use the card again. Soon, my car (loan also through Capital One) will be paid in full. I will use that money to vigorously pay down this account and never deal with the company again. Fool me once, shame on you. Fool me twice, shame on me. With me, you don't get a second chance. When paid off, Capital One will never see another dime of my money.

  • Da
      23rd of Apr, 2007
    0 Votes

    I too just noticed my Capital One credit card's Fixed Rate of 4.99% nearly doubled to 9.90%. I opened the account to make a balance transfer from a higher interest rated credit card and I never paid one Capital One bill late. I am dismayed as to how credit card company can advertise a fixed rate of 4.99% and then quietly raise it. I called Capital One to find out why my so called "fixed rate" was increased I was immediately transfered to the supervisor, a woman named Cindy. She told me that " I see you have paid all your bills on time, but we had to raise rates because the Prime Lending Rates increased." I argued first of all that I opened the account because the rate was locked at 4.99% and asked her why todays rates should affect a loan (a balance transfer) on monies borrowed two years ago. Unable to respond with reason to my logic, she quickly offered to reduce my rate to 8.90% interest, which is only slightly higher than todays Prime Lending Rate, and then offered the patronizing question "Is there anything else I can help you with today?" I am appalled that banks can get away with this. I too am in Texas and will file complaints with the Attorney Generals Office, as well as my Senator, Congressman, the FTC, BBB, whoever will hear me.

  • Do
      19th of May, 2007
    0 Votes

    I paid off my Capitol One Account in 2004 and closed my account and to this date 5-18-07 I received a bill saying my account is open again billing me a membership fee. I called them and they verified they have not sent me a credit card that the last one sent was in 2004, but they say I reopened it with no signature this March and I asked them to close it again and send me an email they refused, and said it would come in ten days, of course I do not trust that will happen, what can I do.

  • Ma
      1st of Jun, 2007
    0 Votes

    I have also had an issue with Capital One's rate going from 4.99% to 9.99% recently. The original offer was 4.99% until the balance was paid off. I do not understand how Capital One can get away with this! My payments have never been late. I contacted them and credit services indicated that the company had made a decision to increase everyone's rate by 5%. I mentioned to them that I receive many notices in the mail for lower rates and would be promptly transferring my funds, which I did. To make things worse, I received another solicitation in the mail from Capital One offering a 4.99% fixed APR for life.

  • Sc
      1st of Jun, 2007
    0 Votes

    I too have had terrible customer service experience with Capital One. My father, who is deceased, left a credit balance on his card. They sent him to collections. As representative of his estate, I had to fight with CO third party collection vendor to convince them CO owes my father's estate, not the other way around. CO continues to delay the release of funds after doing all that was asked of me as personal representative.

    They are a terrible giant in the industry and it is unfortunate that they continue to grow despite their tremendous service short comings. I will certainly never be there customer.

  • Ma
      8th of Jun, 2007
    0 Votes

    I have had an account with Capital One for several years at 9.9% and have always paid ahead of time with more than the required amount due. I also have good credit ( So I'm a little jealous of those of you with the lower rate). I just discovered they increased my APR to 16.9% for no apparent reason. I called and got (Mark) with some story about them raising everyone's interest rate because of current market increases etc.etc. and that it in no way reflects on my credit history etc.etc.

    Then they suggest I could talk to someone who might be able to reduce the rate after all. This person (Cameron) says he can lower it to 15.9%! After finding this site, and reading these complaints, I'm glad I didn't threaten to close the account. I guess you won't have to ask me what's in my wallet anymore. I better pay this off fast. Who can we trust anymore?

  • Bl
      26th of Jun, 2007
    0 Votes

    I received a call from Capital One's "fraud unit" in February 2007. They said that someone had tried to use my card on a German web site. They said they were going to cancel my card, which had a 5.90% interest rate, and would send me a new card, which they did. Then I got my statement for the new card and saw that they had raised my rate to 10.90%. I called them to complain and have them revert my rate back to 5.90%. They said that it was just a "coincidence" that my old card was misused and that they had to send me a new card and that the new, higher interest rate was their new policy and that they had notified me on my January statement. I looked on my January statement and there was no such notification. I think they made up the fraudulent activity on my card just so they could raise my rate. I will be reporting this to the FTC and California Attorney General.

  • Bo
      2nd of Jul, 2007
    0 Votes

    Same story as everyone else, paid off the card & no new charges, 15 yrs with a rate of 6.99% never a late payment, now 11.9%. If this is how a long term customer is treated, I will not to business with them any longer.

    I guess their new plan is high risk, high default, high interest card holders.

    Good luck with that capital one

  • Di
      23rd of Jul, 2007
    0 Votes

    You can also go to clark howard's web site and find out what the government is doing about Capital One. I also had problems and continue to. After being late twice in one year (not past 30 days) my rate went up to 28.15%. I've had the card since 1994 and I've been late before, but they never jumped it up like that. Thats because this time we had a 12,000 balance on it! My finance charge went from 30.00 to 343.00!! When I closed the account out and paid it all off a few days later, my credit score went from 751 to 669 !! In just a few days. Capital One is involved according to my identity thief program, so I'm working on correcting that now. I've never in my life had a low credit score!

    I re-opened my account (by using the card for a small purchase) because that way my credit score will actually increase after I get this mess straightened out. I'm just not going to EVER use the card again. Also thank to Kerry above, I'm going to be writing my representatives of the state.

    Again, go to Clark Howards site and you'll see some other dirty pool Capital One is doing.

    Sincerely,
    Dian R.

  • Je
      1st of Aug, 2007
    0 Votes

    I got a notice that my rate would be going from 8.9 fixed to 15.9Variable. I have never been late and have a great credit record. I am no where near the max on the card. About 1000 dollars on a Ten thousand dollar limit.

    I called and went through the same motions that you guys did and was basically told that there was nothing they could do and they were sorry to be losing my business. Strange... Ive been a Captial One customer for years and they always get paid on time and I keep my balances under control. Yet they are willing to lose the 8.9% they were getting, from someone who actually pays their bills, to another company. I will NEVER do business with them again and I will make sure word of mouth gets around.

  • We
      3rd of Aug, 2007
    0 Votes

    I have three credit cards with capital one, two that have a rate of 14.9 and one at 19.9, i received a notice last week that one credit card will be going up to 19.9, i called capital one and asked them if my other credit cards will be going up also. They told me no and today i just received another notice that my other 14.9 credit card is going up to 19.9. So now i should be expecting the third one at 19.9 to go up to 24.9. It seems to me they do it in increment of 5, according to other web postings i have seen. If anyone has any suggestions on where i can write to congress or anyone who cares please help me. I don't think we should take this corporate greed anymore!

  • Fr
      4th of Aug, 2007
    0 Votes

    For ten years they were quite good, 4.99% or not. Last year I received the notice about changing their practices for my 4.99% charge card. For some reason, they never materialized but for the cash transaction percentage, which I never use. However, I went to a zero balance, waiting to see what happens. This month it went from 4.99% to 13.9% with a minimum percentage possible, after negotiating, to 9.9%. I was NEVER late, 800's credit score, EVERY payment to all credit accounts on time for as long as I can remember.

    Doubling my percentage was the best they could do? It was a punishment, I felt. No excuses suffice. I canceled the card immediately. Then, I was forced to do this "opt-out" thing. Even asked what it was and why could they not just cancel. I was immediately transferred to the voice mail box that does the opt out.

    Um - yeah, you people have now caused me some worry. But, again I'll wait and see. Hopefully two months will go by without incident, and I will receive a closing letter. I am not counting on it, though. But I so hate hiring lawyers to do stupid stuff like this.

    If anyone does not immediately cancel ANY COMPANY that doubles their rates/charges, if they are financially able, then they must like to be abused. For whatever reason, upon congressional hearings on credit card abuse, when a company becomes worse in its usary practices, then NO trust can be achieved or given to that company, in my opinion. Why would anyone even consider using their services, unless they had to? To say this type of business dealings causes me fear and loathing of credit card companies is an understatement. I was not even hurt, in the least, yet, to my knowledge! Do you think their practices will get better, now or in the future? I am thinking not.

    The only way I have successfully impacted companies using abusive practices, though it seemed extremely minor of impact at the time, was to be part of large group of fed up customers and cancel all dealings with the old BofA, Citi and Providian - all, including loans, credit cards and any banking facilities. AND LET THEM KNOW IN NO UNCERTAIN TERMS that their abusive conduct is what initiated the closure of your business. Contacting government agencies has not worked for me, at all, except for cable companies - regulators can actually cause them damage, not like financial institutions.

    If anyone knows what changed in the management of this company, I'm sure all would be curious to know about it.

  • Ki
      18th of Aug, 2007
    0 Votes

    I had almost the same thing happen to me. In 2004 transferred $20,000 to a FIXED FOR LIFE 5.9% APR. Received noticed last month that it is now going to 15.99%. I have NEVER been late and ALWAYS pay above the minimum. I have been damaged because I now have to go out and get another credit card from a different company which means my "available" credit goes up along with my credit score going down due to a potential "debt-to-income" ratio factor. Someone needs to start a class action lawsuit against Capital One for bait and switch. It's a little strange to have one of the banners on this site be for Capital One!!! (what's with that?)

  • Di
      19th of Aug, 2007
    0 Votes

    Kerry: One Capital One Credit Card Co. Wow! I was going to let the issue go, but after reading your comments, I don't think I will. Heres my story.
    About 3 wks. ago, I noticed I was paying 28.15% int. Well you can imagine my surprise since I've had a rate of 5.90 since 1994 and also have excellent credit, 750 - 796. When I called they said it was because I was late twice in the last 12 months. Huh? They said they sent a letter letting me know my int. rate was going up to 28.15%. I never got any letter. I been late 2 times in past years as well, but the difference was: past balances over the years have never really been over $1000 or so. This year my balance was $12,000, I paid $343.00 in finance charges!! They got me when my balance was high on purpose. One of the 2 times I was late was over 30 days late (barley) my father-in-law had gotten sick and passed away that month. They reported to the 3 credit bueuras a past 30 day. I called upset and they changed it to "account paid as agreed" with a week.

    Well after the rate increase to 28% I paid off the balance of $12,000 and ask to close the account! We'll what da ya know, my good credit score of 751, went down to 669. I don't know what they did, but I'm working on it. They also kept my acct. open, but I'm glad they did.

    Kerry - DO NOT CLOSE YOUR ACCOUNT!! just never use the Capital One credit card again, having a card that long helps your credit scores. Closing the acct. is only going to hurt you. Capital One also does not report your credit limit. Why? because have a low credit limit hurts your credit score. They want you to stay with them. What you can do is charge some really big things, mortgage, etc. and get the card almost to the limit, then pay it off. The credit bueaus will automatically put the high amt. as your limit.

    I'm going to write to my senators as well and do whatever I can to show people how Capital One cheats the average American.

    I'm going to put a sign on my back windshield (I live in Anaheim, CA) saying something to the effect: IF YOU HAVE CAPITAL ONE??? YOU HAVE TROUBLE!

    Please do not let up on them, I won't. As a matter of fact, I am going to fax a letter to some of the AM Talk radio shows.

    Warmly, Dian

  • Au
      19th of Aug, 2007
    0 Votes

    I have serious and harmful experience with Capital One currently. I live in San diego, Ca. and please help me find out which government officials or agencies I should send my complaint letter. I strongly agree with your idea of putting a sign on back windshield. Where do I get the sign, or shall I just make my own sign? I think we should be uniform on the sign wordings. Please respond. Many thanks , Dian.

  • Ch
      1st of Sep, 2007
    0 Votes

    My wife and I have had the same experience. We have been with capital one for years never late on any payments on our two cards. We received the same notice to opt out . They were also going to double our interest rate not only on new purchases made after the opt out date but on current balance. Of course this has to happen when our balance is the highest it's ever been in years!! When we called to see if they would lower the rate we were able to get it knocked down to 14.99%. They said it was the best they could do! We will be paying both cards off as soon as we can but not closing our accounts since all the horror stories out there!! How is this not a criminal act. If my wife and I did this to our customers we would be in jail!!!

  • Ma
      28th of Sep, 2007
    0 Votes

    I own a business and paided for credit card protection
    in the cards where in my name,when my business closed
    they deninied my claim ,said because i was selfemployed
    they would not honor claim until,i got a job,so capitol one
    has comitted ,fraud,because they got my money,and
    diskrimation because i was self employed.i still looking for job.

  • Jo
      20th of Oct, 2007
    0 Votes

    I just noticed that my rate went up from 9.9% to 19.9%!! I thought it was a misprint at first till I realized that this has been my rate for AT LEAST the last 6 months. I called Customer Service but they can't tell me when it changed. From searching online it seems that they sent out a notice telling me about the increase that would begin in March 2007. Apparently I missed that with all of the other junk they send me.... Anyway - I am appalled that they could change the rate like that without speaking with me or getting some kind of active acknowledgment. Doubling my rate (which in my case costs me hundreds extra per month) by simply not hearing from me to cancel my account is absolutely criminal.

    They will no longer get any of my business. And I have been doing business with them since 1992 (Got me right out of college...). Even if they lowered my rate back to non-Department-Store levels, I still would never be able to trust them again. Absolutely unbelievable...

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