12-19-2010 08:02 PM - edited 12-19-2010 08:03 PM
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?
12-19-2010 11:46 PM
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.
12-20-2010 04:39 AM - edited 12-20-2010 04:39 AM
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).
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.
12-20-2010 09:40 AM
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".
12-20-2010 09:52 AM
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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