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Established Member
Posts: 22
Registered: ‎07-30-2007
0

Cap 1 interest increase

"Due to extraordinary changes in the economic environment", Cap 1 increased my fixed interest rate from 13.9% (mediocre to begin with) to a variable rate 14.65% + Prime rate!  No lates on my credit report in 5 yrs, pay off card monthly, EQ=749 (always my lowest agency).  If I hadn't had this card for 20yrs, I would cancel but it's my oldest account.

 

I apparently am not the only one hit by this.

 

http://www.consumeraffairs.com/credit_cards/capital_one.htm

 

 

Be aware if you are looking to get a Cap 1 card...

Established Member
Posts: 11
Registered: ‎01-23-2009
0

Re: Cap 1 interest increase

Nope, you are not the only one. They incresed interest to me from about 14% to 23.9%. It's even more than my initial interest when I applied for this card some years ago. The best way how to resist this behavior is to pay all balance off and use the card for very small charges every month and PIF the balance. I carried balance over on this particular card and I was using it heavily so they made about 3% on all of my purchases and cashed interest as well. Now they won't make anything or really very little. And if they close the account on their own I won't cry for it.
Established Contributor
Posts: 645
Registered: ‎10-24-2007
0

Re: Cap 1 interest increase

Happening to LOTS of us. But if you've had their card for 20 yrs. you must have seen this before. I've had mine for 7 and 8 yrs and went through it when they did large scale rate jacks 2 or 3 years ago. My rates went up to 19 and 21 % then....I called 6 months later and they were reduced to 12 and 13%...then further to 9 and 11%.

This week  they went up to 17.9%

 

I'm sock drawering mine for a while now as I never pay AF on them. Hopefully Cap One will be open to renegotiating rates again in a few months.

Member
Posts: 9
Registered: ‎07-30-2007
0

Re: Cap 1 interest increase

[ Edited ]

"Due to extraordinary changes in the economic environment"... So people are having a hard time paying bills, and their big idea is to make it harder for people to pay them back?! They may as well have started the letters with, "Times are tough, and will only get tougher thanks to Capital One!"

 

My Husband and I each have Capital One and received the same notice.  I recently paid mine off and once I got that letter, I decided not to use it anymore.

Message Edited by rdenise76 on 03-04-2009 08:19 AM
Established Member
Posts: 12
Registered: ‎08-16-2008
0

Re: Cap 1 interest increase

I got mine yesterday.  They jacked me up to 23% variable.  I've drawered the card and I'll be calling Capital One Direct Banking and telling them that in response to their letter, and due to the economy, I will be withdrawing my Money Market (which has dwindled in interest and is now useless) and placing it in my local credit union.  Then I will write a letter citing every reason they gave me for my ratejack as the excuse for my closing the account.  I might even use quotes and a footnote giving them credit for the words.

 

It probably won't accomplish anything, but I'll feel 100% better.

Valued Contributor
Posts: 1,668
Registered: ‎02-18-2009
0

Re: Cap 1 interest increase


rdenise76 wrote:

"Due to extraordinary changes in the economic environment"... So people are having a hard time paying bills, and their big idea is to make it harder for people to pay them back?! They may as well have started the letters with, "Times are tough, and will only get tougher thanks to Capital One!"


I do not understand the hate.  They are giving most users month to become aware of the changes, and pay down their balances and to pursue other cheaper lines of credit to transfer to if they have to.

 

I am sorry, yes their changes are somewhat draconian, but what actaully do you expect?

 

It does not cost you anything to keep the account open. And who knows when the markets will cycle back anyway.

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Contributor
Posts: 146
Registered: ‎01-06-2008
0

Re: Cap 1 interest increase

On my March 09 statement I noticed that they LOWERED my interest rate from 15.9% to 11.9%.

 

Who knows why these banks do the things that they do:smileysurprised:

02/14/2009 EQ 797, EX 811, TU 805
Established Member
Posts: 12
Registered: ‎08-16-2008
0

Lost in translation...I need some help with this, please.

Here is what Cap One wrote on their ratejack brochure, and I need help with interpretation:

 

Purchase and Balance Transfer (APR):

  • A promotional rate equal to your existing non-introductory Purchase APR though your January 2010 billing period.Beginning within two billing periods after that, a variable rate equal to 22.9% as of 1/28/2009.  This APR may vary monthly and will be determined by adding 19.65% to the Prime rate.
  • Please note that the rate on purchase balances and balances transferred at the purchase rate will NOT expire until at least Januar 2010.
  • Any introductory or promotional rates on your account will not increase until they expire.
  • Special Transfer rates are NOT impacted by this change.

*Effective with your first billing period that begins after April 17, 2009, your existing Purchase rate will be treated as a promotional purchase rate that won't expire until 2010.

 

There are times when I'm almost grasping what they're saying, but then I'm lost again.  Can anyone help to translate into terms a lay person can understand?  (And stop laughing at me -- I'm aware that I'm a dolt!!!)

Established Member
Posts: 22
Registered: ‎07-30-2007
0

Re: Lost in translation...I need some help with this, please.

 

I think it means you are being notified now that your rate goes up in January 2010.  Your new rate will be 19.65 + prime rate (which if calculated now would be 22.9%).  Your rate will fluctuate based on month to month changes of the prime rate. I ASSUME the part about the promotional rate taking effect 4/17/2009 means that if you are late with your payment after that date then your interest will go to the new default rate (you know, the insanely high one).  At least , that's how I'd interpret what they said...

New Contributor
Posts: 55
Registered: ‎02-21-2009
0

Re: Lost in translation...I need some help with this, please.

My target only card has cheaper intrest rate, then my Cap 1. Who would have thunk a prime lender being beaten by a sub prime lender.
02/22/09 TU 574 EQ 498

4/15/09 TU 637 EQ 551.
Med collection in hippa process on EQ
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