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Capital One Interest Rate Issue

Established Contributor

Capital One Interest Rate Issue

So my Capital One card has been in penalty APR (29.40%) for a LONG time now...over a year at least, but I just realized it should be a temporary thing and not permanent. According to info on this site, 6 months from after the last late payment it should revert back to normal this correct?


I wrote a letter to Capital One asking them to switch it back to the normal APR, which i cant even remember what it was at this point, but they just sent me a letter back saying they are "currently unable to lower the APR's on their products."


Anyway, I happened to just be bored and clicked the balance transfer offer link on my Capital One account main screen and it said if I did transfer balance to my Capital One card it would be subject to my "existing purchase rate APR of 14.8%"....


Does this mean that this is my APR currently and its been switched from the 29.40% and I just havent noticed because I havent gotten the latest statement with the new interest rate on it?




Interest Rate...Maybe?



$1200 $1250 $4250 NPSL $5300 $1350 $3000

$6050 $5000 $10500 $2416 $6500 $3000
Message 1 of 5
New Member

Re: Capital One Interest Rate Issue

In the past, many banks would charge a different rate for new purchases vs. existing balances.  Since the laws have been changed, that no longer seems to be the case.  However, I doubt they will change the rate on existing balances that have been assigned a penalty APR.  Guess you'll have to wait for your statement in order to know for sure.

EQ 819 - TU 818 - EX 820
Message 2 of 5
Valued Contributor

Re: Capital One Interest Rate Issue

The new credit card act requires them to reinstate the non-penalty rate after six months of timely payments.  But I wonder if they put you "in the penalty box" before the new law took effect and are relying on that to keep you there.


I might write back politely asking why they aren't honoring the provisions of the law (cite the specific section, I don't have that handy).


Something like:


Dear Crap1:


Thank you for your letter of MM/DD/YYYY declining to reinstate my non-penalty rate.  I have made X current payments since MM/DD/YYYY and I don't understand why you aren't following Section ZZZZ of the Dodd/Franks Act. 


Please return me to a non-penalty rate or explain the reason you decline to do so.

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
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Message 3 of 5
Moderator Emeritus

Re: Capital One Interest Rate Issue

Read Section 171 of the Credit Card Act 2009.




From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Message 4 of 5
Senior Contributor

Re: Capital One Interest Rate Issue

If they refuse to drop your rate, I'd get ahold of your other cc companies & ask about a BT.  Check for BT fees & rates.


Then sock drawer the Cap 1....  They obviously have given you no incentive to continue using them, but a good reason to stop.

Starting Score: 02/2015 TU 709 - EQ 676 - EX 729
Current Score: 12/2017 TU 779 - EQ 779 - EX 782
Goal Score: 850

Bury me in the garden...last app 07.27.17

Message 5 of 5