Credit Cards

[wonderandawe]

I recently upped my credit limit on my Capital One Platinum Card.  It took about ten days to process with the money being removed from my account three days after my deposit request.  I log on today and find out that my account is restricted.  I call the Fraud Line and apparently they need to verify with my bank that the money was taken out of my account.

Do you know of any reason why they would do this? Is this a common thing? You would think that they would realize that my deposit cleared seven days ago within thier own internal systems.  This is the second time Capital One has needed my bank information to process something (the first time was a payment).

[BearOSO]

I think I had to do 3 three-way phone conversations to confirm my increase in secured deposit and to process two payments and have my available credit on the card adjusted accordingly to my payment even though my money was already taken from my checking account and payment was received on capital one's end. It gave me a headache and I hope it's the last time. 

it is only for security purposes but I find it funny they can take the money first and then put your account on hold 

on phone, sorry for errors

[bettercreditguy1]

They want to be sure nobody pulls a fast one like forwarding money, then it turns out no good, credit card then maxed, no recourse. They also use the ten day hold thingy even though the FEDs say every fincancial transaction must clear with in 48 hours except for certain instruments/applications.  So think about it two ways, they earn interest on all of the secured monies and payments while sitting there and your credit is comatose simultaneously. Great way to make money off of everybody else with minimal risk.

[wonderandawe]

Yeah.  I figured as much. 

I am going to go on an app spree at the end of the month.  I was going to apply for a unsecure Capital One Card, but not anymore.  As soon as I build up my credit more, they are gone!

[SnackTrader]

I am not aware of any law that says all transactions must clear within 48 hours. There are various laws that discuss the timing with which certain transactions must be processed, but I'm not sure what category this falls into. Most of these laws related to deposits being available for customer use, rather than credit limit availability.

I would be intrigued to learn more about the laws you are referencing, bettercredit. Do you have any further information?