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Valued Member
jeffy5869
Posts: 31
Registered: ‎01-13-2008
0

Another Unsatisfied Cap1 Customer

Received a letter in the mail today, Cap1 will now be charging a $59 annual fee on a credit card I have had with them for over 10 years that had no annual fee.  Ten years of business to Cap1 gone in an instant so they can make an additional $59 a year on top of the interest they already collect.  Goodbye Crap1, don't let the door hit you on the way out.

Established Contributor
PurpleHaze
Posts: 717
Registered: ‎03-05-2008
0

Re: Another Unsatisfied Cap1 Customer

I read your post this afternoon while i was at work and thought to myself, "man that sucks." Just got home and in my mailbox is the same noification. You didnt mention the "whys" on your post, but I want to ask if you turned the letter over to the backside to read the important information. Mine reads the change to my membership fee was based on the following reasons and on information based in a report  from the consumer reporting agency listed below (Equifax):

 

  • there are too many delinquent past or present credit obligations
  • proportion of revolving account balance(s) to credit limit or high credit is too high
  • the current membership fee on your account
  • your recent capital one balance

 

The interesing thing is they sent me a preapproval via email a little over a month ago (which I accepted and received) based on MY EXISTING CREDIT AND MY CREDIT HISTORY WITH THEM. I am in a quandry because this is the oldest tradeline I have since I began rebuilding my credit. All of my previous lines of credit were cancelled and I had a charge-off with Cap One. Via their collection agency they offered me a new card upon payoff of my charged off account. Now grant it the card received one increase from $200 to $500 and has stayed there ever since, but they were the first company to allow me to regain and rebuild credit. Not sure if it is worth $59 from $19.


Starting Score: EQ: 633 (12/31/09) TU: 651 (12/31/09)
Current Score: EQ:633 TU: 651
Goal Score: EQ: 700 TU:700


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Moderator
MarineVietVet
Posts: 14,870
Registered: ‎07-14-2009
0

Re: Another Unsatisfied Cap1 Customer

Cap 1 is also my oldest card and if I get that same letter I guess I'll have a decision to make.  :smileyhappy:

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work


Frequent Contributor
USC08
Posts: 299
Registered: ‎06-27-2008
0

Re: Another Unsatisfied Cap1 Customer

Is this legal under the new credit card laws?

Frequent Contributor
daboss28
Posts: 483
Registered: ‎06-07-2010
0

Re: Another Unsatisfied Cap1 Customer


PurpleHaze wrote:

(Equifax):

 

  • there are too many delinquent past or present credit obligations
  • proportion of revolving account balance(s) to credit limit or high credit is too high
  • the current membership fee on your account
  • your recent capital one balance

For the concern about the CARD ACT.  There is no violation here.  This could be considered a loophole because it's a fee not an interest rate.  All the restrictions in regards to universal default ... card user performance regarding other accounts only applies to interest rates not fees so that part is not applicable.  That pretty much covers the blue.

 

The red would be fair game even if we were talking about interest rates because it concerns the account in question however the higher interest rate cannot be retroactive to the preceeding balance and must be reviewed every 6 months there after and if the consumer is found more credit worthy then the interest rate must be lowered.   This should not be a hard pull if you remind them of the 6 month mark because by law states is not user initiated it's law required.  So it's non PP.

 

The only thing they have to do is give you fourty five days notice of the change.  Lack of doing so is violation of the CARD ACT.

 

You have the right to refuse the fee change and they have the right to close the account.  That's pretty much it.

EQ 715 8-4-12 // Walmart TU 720 8-11-12 // TU 04 744 (cc pull) 8-23-12 EXP (cc pull) 707 8-23-12
~~In my wallet: Chase Freedom, Discover More , US Bank, Walmart Discover, CitiDividend Platinum Select , Target Red Card

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Senior Contributor
O6
Posts: 3,626
Registered: ‎10-13-2009
0

Re: Another Unsatisfied Cap1 Customer


daboss28 wrote:

PurpleHaze wrote:

(Equifax):

 

  • there are too many delinquent past or present credit obligations
  • proportion of revolving account balance(s) to credit limit or high credit is too high
  • the current membership fee on your account
  • your recent capital one balance

For the concern about the CARD ACT.  There is no violation here.  This could be considered a loophole because it's a fee not an interest rate.  All the restrictions in regards to universal default ... card user performance regarding other accounts only applies to interest rates not fees so that part is not applicable.  That pretty much covers the blue.

 

The red would be fair game even if we were talking about interest rates because it concerns the account in question however the higher interest rate cannot be retroactive to the preceeding balance and must be reviewed every 6 months there after and if the consumer is found more credit worthy then the interest rate must be lowered.   This should not be a hard pull if you remind them of the 6 month mark because by law states is not user initiated it's law required.  So it's non PP.

 

The only thing they have to do is give you fourty five days notice of the change.  Lack of doing so is violation of the CARD ACT.

 

You have the right to refuse the fee change and they have the right to close the account.  That's pretty much it.


Have to admit, though, that even though it's probably legal, it sure does suck. 

 

Personally, I'd nuke any card that tries to charge me an AF -- most certainly if the AF is over 10% of my CL. 

IAALBNYL
Established Contributor
Tazman81
Posts: 719
Registered: ‎06-23-2010
0

Re: Another Unsatisfied Cap1 Customer


O6 wrote:

daboss28 wrote:

PurpleHaze wrote:

(Equifax):

 

  • there are too many delinquent past or present credit obligations
  • proportion of revolving account balance(s) to credit limit or high credit is too high
  • the current membership fee on your account
  • your recent capital one balance

For the concern about the CARD ACT.  There is no violation here.  This could be considered a loophole because it's a fee not an interest rate.  All the restrictions in regards to universal default ... card user performance regarding other accounts only applies to interest rates not fees so that part is not applicable.  That pretty much covers the blue.

 

The red would be fair game even if we were talking about interest rates because it concerns the account in question however the higher interest rate cannot be retroactive to the preceeding balance and must be reviewed every 6 months there after and if the consumer is found more credit worthy then the interest rate must be lowered.   This should not be a hard pull if you remind them of the 6 month mark because by law states is not user initiated it's law required.  So it's non PP.

 

The only thing they have to do is give you fourty five days notice of the change.  Lack of doing so is violation of the CARD ACT.

 

You have the right to refuse the fee change and they have the right to close the account.  That's pretty much it.


Have to admit, though, that even though it's probably legal, it sure does suck. 

 

Personally, I'd nuke any card that tries to charge me an AF -- most certainly if the AF is over 10% of my CL. 


+1  -- I say its about time to nuke them.  I will be nuking them soon, though not for the same reason.  They were the first ones to give me a card after my bankruptcy.  It started at a $500 limit then went to $750.  I called to ask about my "next step", and was told that I am not in any credit steps program and that my account was just increased 8months ago because of my good usage and payment history.  So, I told them that I had good usage and payment history for the last 8 months and would like an additional increase.  I was told the card does not qualify for a manual review blah blah blah...  Anyhow, I called the back door numbers, and really got no where.  The lady told me to fax in my written request to their corporate office so that they can review this.  I did so, and the response I got by mail was, "we do not accept written request for credit line increases".  So, over a period of only 15 days, I received 5 (yes, no studdering here, 5) letters from Crap One saying my account is not eligible for a manual review for a credit line increase.  So, I said fine, I went to my credit union and I'm getting a credit card from them.  Once I receive it, then I am going to be forced to spend an additional $213 (exactly) on crap1 so that I can get up to my 10k point limit and get my little gift card so I don't loose my points, and then its to the sock drawer with crap1.  I will have no use for them, and will charge a pack of gum every 2-3 months to keep it active.  But if they start to try to hit me with an annual fee, then they are goners.


Starting Score: Eq: 662 Tu: 532 (03/02/2011) CH7BK 01/12/2009 Discharge
Current Score: Eq: 692 (04/03/2013) Tu: 717 (04/03/2013)
Goal Score: Eq: 720 Tu: 740

Wallet: Chartway Visa 10k | AMEX Costco TE (AU) 25k | Cap One MC 750 | Cap One Visa 750
Valued Contributor
GregB
Posts: 1,669
Registered: ‎05-24-2007
0

Re: Another Unsatisfied Cap1 Customer

Ask yourself these questions:

 

1. Are you better off now than you were before CapOne gave you a CC?

 

2. Was there any other CC Company that would have been a better choice?

Established Contributor
wollepopolle
Posts: 545
Registered: ‎09-12-2010
0

Re: Another Unsatisfied Cap1 Customer

It's interesting that so many of you have such bad experiences with Capital One. And I can see why!

I got their No Hassle Cashback Rewards (2% on gas/groceries + 1% on everything else with no cap and no annual fee). I love the card for foreign transactions as they don't charge me a fee. Also, the cashback is straightforward: I can redeem any available amount at any time. No expiration or jump-through-a-hoop to get there.

When I applied, they gave me a CL of $7400 right away which I thought was generous.

With Cap One it seems that if you start out low with a rebuilder card or a secured card, they keep you there and are unwilling to graduate people with good history.There is a deep rift between their subprime and their prime cards.

So far, they've adhered to what they promised. But I've only had the card for two months. We'll see!

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Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
0

Re: Another Unsatisfied Cap1 Customer

 


wollepopolle wrote:

 

It's interesting that so many of you have such bad experiences with Capital One. And I can see why!

I got their No Hassle Cashback Rewards (2% on gas/groceries + 1% on everything else with no cap and no annual fee). I love the card for foreign transactions as they don't charge me a fee. Also, the cashback is straightforward: I can redeem any available amount at any time. No expiration or jump-through-a-hoop to get there.

When I applied, they gave me a CL of $7400 right away which I thought was generous.

With Cap One it seems that if you start out low with a rebuilder card or a secured card, they keep you there and are unwilling to graduate people with good history.There is a deep rift between their subprime and their prime cards.

So far, they've adhered to what they promised. But I've only had the card for two months. We'll see!


 

Exactly. And this is true of most other builder/ rebuilder cards, even those that don't come from banks with better cards as well. It does get frustrating if they won't graduate you, but they're well-known for this.

 

I've always called these "training wheels" cards. Just like little kids learning to ride bikes, you might need these in the early stages. But you're not going to want to have training wheels forever, so when your credit profile improves and you can get better deals elsewhere, it's time to take off the training wheels and let someone else use them.

 

They were appropriate in their time; now they're not.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

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