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Capital One Secured Credit Card / low interest rate credit card from capital one is a scam

1 Canada Review updated:

Low Interest Rate Credit Card From Capital One is a Scam.

Avoid Capital One Secured Credit Card like the plague. Here's their corrupt procedure:

1) Tell you to send in $300 (or greater amount for higher limit).

2) Once they receive your money they send you a snail mail telling you they got your money and that they will be sending out a identity confirmation package. (Why not just send it to save time?)

3) A few weeks drip by, then you receive the snail mail identity package.

4) You have to fill out a form and go to the post office and show id, to confirm identity, then snail mail the form back to them.

5) They then send you out a notification that your identity has been confirmed and you will be receiving your pre-paid card shortly. (Again, why not just send the damn card.)

6) A few weeks later your card arrives.

The whole process takes close to 3 months, during which time they are earning millions in interest using your money combined with tens of thousands of other customers.

Once you spend the deposit amount, you'd think your balance would be $0, but no. They post your balance as (ex: $300) then when you charge say $21, the balance goes to say $321).

You then receive a statement stating your balance of $321, and showing a minimum payment of $21. So you pay the $21 and on your next statement see that they charged you say $5.01 in interest. So even though you made the minimum payment of $21, they charge you an over-limit fee of $29 because the INTEREST charges sent you over-limit. Now remember, this is a pre-paid credit card, so in reality you only actually owe them $5.01 in interest, but they ding you for $29 anyway.

So then you figure out they're a bunch of crooks, so decide to close the account. You make a final payment sufficient to cover all current charges and interest and a few days future interest, for good measure. You even record the conversation using Skype Recorder of their rep telling you that the account is closed and there will be no further charges posted. You assume that with your payment of $ 31.01 ($21 + $5.01 for interest + $5 for a few days interest, just in case), that your total statement balance of $326.01 will be paid out ($300 of credit coming from the $300 deposit you gave them when you opened the account).

But no. Capital One Pre-Paid Credit Card has more dirty tricks up their sleeve. They then continue to post charges to your account, then charge you the $29 overlimit fee and punch you in the face by telling you they won't close the account until your balance is paid off in full. i.e. Even thought they have $300 of your money, they want you to send them $300 + the $5.01 for the unauthorized charge, plus the $29 they illegally charged you on an account their rep. told you was closed when you called in to close it.

So they expect you to pay them $334.01 out of pocket to close the account, and then wait for them to send you back your deposit of $300. Capital One Pre-Paid Mastercard are a bunch of evil ### who should rot in hell forever for intentionally plotting how to maximize their thefts from people who are struggling to rebuild credit by using a pre-paid mastercard. Avoid Capital One Credit Cards like the plague.

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Comments

  • Ti
      16th of Oct, 2010
    +1 Votes

    man you hit the nail on the damn head...

  • Nd
      26th of Dec, 2010
    +1 Votes

    Capitol One is one of the four crooked Masterminds of Bank empowered theft. Osama Bin Laden should've smashed them instead of the World Trade Center. He'd have had millions of supporters.
    Visa, Capitol One, Chase, MasterCard, Discovercard, CitiBank, and American Express are all crooks. Hanging is still a legal practice when dealing with Horse thieves and bank robbers in America.

    Think about it.

  • Bi
      25th of Jan, 2011
    +1 Votes

    You are getting pre-paid cc and secured cc mixed up. On a pre-paid card you make a deposit say 300.00 . you charge 300.00 and your balance is 0. To use it again you need to make another deposit. On a secured cc you make a deposit of 300.00 secured on the cc. You charge 300.00 and your balance is 300.00, to make payments on. You owe 300.00. The 300.00 you put on the card is only security if you dont pay.

  • Ox
      15th of Apr, 2011
    0 Votes

    You obviously did not understand how a secure card works. It is a regular credit card that you have provided secure funds for, and yes it is a long process, because you have poor or non-existent credit the Canadian government requires all credit providers to do an extra step to verify who you are. Capital One does not have branches in Canada so they have to partner with a federal agent (Canada Post) to make sure you are not a fraudsters (all banks do this with credit but their tellers do this so it is a bit faster and there are fewer errors). While you may dislike Capital One because they took a long time getting the card to you, other than that you can't blame Cap One for you not reading and understanding how to use a secure card. Over-limit fees and interest fees are clearly stated on the web site, Cap one also doesn't charge late fee's and will give you the occasional payment holiday so it looks like you made regular payments even if you missed one.

    Capital One reports your good credit history every month unlike other cards that take their sweet time, Other secure cards won't bother looking at you without a $500 plus security deposit so you have to tie up more of your money. Capital One has a super simple web site that has dozens of tools to help you manage the card wisely and if you had taken the time to read it before racking it to the max and incurring over-limit fee's you might have improved your credit score enough by now. I have a $400 limit on my secure card and in less than a year I have gained 60 points and I am now hovering on the fine line of 'fair' and 'good'. That means in a few months i will qualify for an unsecured card and I can apply either at Cap One or get one from my bank and THEN I can cancel my secure card and get my funds back.

  • Gf
      10th of May, 2011
    -1 Votes

    I have an un-canadian (american) capital one secured card - and yes you secure it with a deposit, and your balance is what you charge onto the card.

  • Se
      28th of May, 2011
    0 Votes

    looks like you did not have a good experience with capital one. thanks for sharing your story.

  • Ca
      4th of Nov, 2011
    0 Votes

    CapitalOneIsCriminal obviously has no idea how secured credit cards work (or credit cards in general for that matter). For one, he obviously did not complete the deposit process in an intelligent way, because mine was direct deposited, and I had my card within a couple weeks max. The 'my balance should be zero' part...needs no further comment. Also, credit card companies CANNOT charge overlimit fees unless YOU PERSONALLY OPT IN to overlimit charges, allowing your card to accept charges over the credit limit, thus accepting the fee. Mine has been over the limit due to interest applied, and I've never seen a fee. I've had a $500 secured card with Capital One for over a year now, and it has indeed improved my credit greatly. In addition, I was approved for a $750 unsecured card with them less than 2 months after opening the secured account. That said...they are the ONLY credit card company I can think of that DOES NOT offer the option for the secured product to 'graduate' to an unsecured card. Had I chosen Bank of America instead of Capital one, I would have an unsecured card with them now, and have my deposit back. So because Capital one runs their company ### backwards and doesn't care to deepen their customer relationships, I am now forced to either leave that $500 in their possession to keep my account open, or close it, get the $500 back, and open another secured card with a company that will actually take my payment history and account management into consideration and eventually return the deposit without closing the card. In doing this, I will be closing my first credit card, negatively impacting my credit score...So while this guy's complaint was based on complete ignorance of what he was signing up for...Capital One is still far behind their competitors when it comes to this type of product...they could care less if I remained as a customer, built my credit, and began to do more business with them as my credit history and credit lines improve and increase. So I'll likely be taking my business to another company, and re-investing that $500 with a company like Bank of America where it can help me improve my credit without ultimately harming it when I am forced to either close the account, or leave the money with them so they can make interest off of it and me, to avoid the harm to my credit that closing the account would likely cause. So no, Capital One are not crooks...they just make run a poor, no, more like idiotic business model that has no focus on long term customer relationships.

  • Ru
      25th of Aug, 2012
    0 Votes

    I Sonewhat agree with Criminal. It has been two months since I paid my deposit and I have the card, however I am still waiting for the 4 digit pin. I have made a couple calls to their customer service dept. However everytime I call they say I should have gotten my pin in the mail and they will resend it. (Should have it in 4 business days). If it is going to take 4-6 weeks to mail out a pin number then tell me that. So the deal was put $75 down for a $300 secured card. So I sent the money, (2 months ago now) 6 weeks to get the card and I still am waiting for the pin. After the card arrives I get a bill for 59.00 This is a activation fee????? Wow didnt see that coming. So i paid it. Now the painful wait for the pin that never seems to arrive. Im not saying they are crooks, but seriously does it actually take 2 months to get a letter? I can get a parcel from the southern states delivered in less then 2 weeks. Just be more honest and punctual Capitol one. Heres the funny part... While I am waiting, , , I went into my bank to get a new debit card and they informed me that I was pre-approved for a $5000 Visa. I will keep ya posted on how long they take for comparison.

  • Jj
      24th of Oct, 2013
    0 Votes

    I moved to a new state. Figured I would get a secured card to build credit to buy a house. They took my money out of my bank account and sent card. All should be good. NOPE. They called my father to ask if he applied for a card. He said no and they flagged my card as fraud. I hadn't lived in parents house in 13 years and we both have the same first name. They didn't ask hime to verify birthdate or social or full name. So I cant get my money back or get credit. When I called they told me I have to apply for credit in my own information. DUH I did and was told they would refund my 49.00 it has been six months it took 24 hours to take the money but wont return it. CROOKS Maybe if they want to go back that far you might want to get the information correct. there are Many John's out there get middle name, birth date, and social tooo... BEWARE I now have fraud on my account and cant get it removed until Capital ONe removes it

  • Za
      9th of May, 2014
    0 Votes

    Capital One is great because they accepted me when no other credit card company would.

  • Sn
      10th of Nov, 2014
    0 Votes

    My dealings with Capital One have been long and convoluted, so I won't bother going into great detail. I'll just say that once you pay that deposit, don't expect to ever see it again. They steal it, and when you try to get it back they give you the run around - probably intended to make you just give up. It works.

    Moral of the story: This company is a scam. No matter how bad your credit, it just isn't worth it to do business with Capital One. There are better, far more affordable ways to rebuild your credit. Get a secured line of credit with your bank instead, for instance.

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