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Established Contributor
shane82388
Posts: 979
Registered: ‎07-16-2010
0

Capital One Interest Rate Issue

[ Edited ]

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 APR...is 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?

 

 

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New Member
mutiger
Posts: 3
Registered: ‎12-19-2010
0

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.

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Valued Contributor
chasmith
Posts: 1,062
Registered: ‎05-26-2010
0

Re: Capital One Interest Rate Issue

[ Edited ]

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.

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Moderator
MarineVietVet
Posts: 14,945
Registered: ‎07-14-2009
0

Re: Capital One Interest Rate Issue

Read Section 171 of the Credit Card Act 2009.

 

 

 

From a BK years ago to:
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Senior Contributor
BungalowMo
Posts: 4,243
Registered: ‎05-01-2008
0

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.



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