topic Re: Capital One Canceled Our Cards in Credit Cards

Capital One Canceled Our Cards

Anonymous — Thu, 25 May 2017 15:51:42 GMT

I'm new to this forum. For the last 2 years, I have had 2 Capital One cards. Platinum and Quicksilver. For 29 months, I paid my bill in full each month. Never was late and always used the "Cash Back Rewards" as a payment on the cards. Suddenly, both cards were canceled and a letter was sent to me, saying "The cards were not being used for household expenses." With a $1,000 limit on each card, we ONLY used them to buy gas, groceries, and pay our toll tag bill. After calling several times, we were never truly given a specific reason for the sudden cancellations. Has anyone experienced this?

Re: Capital One Canceled Our Cards

Anonymous — Thu, 25 May 2017 15:54:39 GMT

No. I think that you should call back and get more details.

Re: Capital One Canceled Our Cards

Anonymous — Thu, 25 May 2017 15:59:30 GMT

Yes this just happened to my husband last week. I paid his bill in full over 2500 but because I switched banks I used a new bank account. For some reason the payment was returned. I paid the bill again this time it went thru. Paid on the 9th and posted on the 9th. Accounts closed on the 10th. They said the account was closed due to credit card aggrement not meet. I was pissed...... My husband still has to call again because its his account and i'm only an authorized user.

Re: Capital One Canceled Our Cards

Anonymous — Thu, 25 May 2017 16:07:19 GMT

Report them to the CFPB and see what happens.

https://www.consumerfinance.gov/complaint/

Re: Capital One Canceled Our Cards

Anonymous — Thu, 25 May 2017 16:18:24 GMT

Thank you. I will file now.

Re: Capital One Canceled Our Cards

Anonymous — Thu, 25 May 2017 16:22:39 GMT

They suggested we re-apply for a new card. We did. We got a new Quicksilver card with a $1,500.00 credit line on May 4, 2017. The card was received by us shortly thereafter. My wife made a gas purchase and a purchase at the grocery store for a total of $139.00. The very next day, the card was declined in the store. When we called Capital One, we were told the card was canceled by Capital One. We AGAIN received a letter saying the account was closed because they noticed "the activity on the card was not consistent with household purchases." Very frustrating!! But, I will now file a complaint with CFPB.

Re: Capital One Canceled Our Cards

Anonymous — Thu, 25 May 2017 16:24:07 GMT

Did your wife buy a gift card of ANY amount at the grocery store?

Re: Capital One Canceled Our Cards

Anonymous — Thu, 25 May 2017 18:05:57 GMT

Yes, a $50 gift card for a birthday gift. Is that forbidden?

Re: Capital One Canceled Our Cards

Anonymous — Thu, 25 May 2017 18:08:20 GMT

Yep. Gift cards will create AA with some lenders on new rewards accounts. The fact that it was almost 50% of your spend on that purchase is what got you flagged.

They will take you back after 180 days in the naughty chair: http://www.doctorofcredit.com/saving-your-credit-cards-from-shutdown/#Capital_One

Re: Capital One Canceled Our Cards

Anonymous — Thu, 25 May 2017 18:50:55 GMT

They see gift cards as MS(Manufactured Spending). Alot of people used this to meet their minimum spends to get bonuses so banks started taking action against people that use this method. It would of probably been okay if you had the card for a long time and it was after your bonus period, but since it is was most of your first purchase they probably classified it as MS.

Re: Capital One Canceled Our Cards

Aduke1122 — Thu, 25 May 2017 19:40:36 GMT

Wow I knew that buying Gc could cause issues with some lenders but just ONE GC that's crazy

Re: Capital One Canceled Our Cards

swpopham — Thu, 25 May 2017 22:19:33 GMT

I don't know why you went back to capital one? You took 3,hard pulls to get that 2nd card. If you pay in full why not do a green Amex? Or discover card?

Re: Capital One Canceled Our Cards

fltireguy — Thu, 25 May 2017 22:33:20 GMT

I strongly disagree with the GC reasoning

A merchant DOES NOT report itemized details of a MC/Visa purchase. It is simply a dollar amount. That's all. Dollar amount, date, time, merchant, etc.... CapOne had NO idea what that transaction entailed - the only possible exception being a few $250.00 transactions, etc... exact dollar amounts that could have possibly been a GC purchase, but, again, they have no way to verify

Re: Capital One Canceled Our Cards

Anonymous — Thu, 25 May 2017 22:38:31 GMT

@fltireguy wrote:
I strongly disagree with the GC reasoning

A merchant DOES NOT report itemized details of a MC/Visa purchase. It is simply a dollar amount. That's all. Dollar amount, date, time, merchant, etc.... CapOne had NO idea what that transaction entailed - the only possible exception being a few $250.00 transactions, etc... exact dollar amounts that could have possibly been a GC purchase, but, again, they have no way to verify

That's not entirely true but discussing it at MyFico is strongly against the rules. Let's just say there are third party "data mining" companies whose sole business is detecting these kinds of spends and reporting them to credit card providers.

Re: Capital One Canceled Our Cards

thummel — Thu, 25 May 2017 23:47:28 GMT

It's not worth the hassle of trying to fight capital one on it. They clearly see something they don't like and if I was in that situation, there's plenty of other banks out there that will take the business.

Re: Capital One Canceled Our Cards

Anonymous — Fri, 26 May 2017 12:48:16 GMT

Thanks for info. I had no clue.

Re: Capital One Canceled Our Cards

Anonymous — Fri, 26 May 2017 12:49:51 GMT

Lesson learned - the hard way!

Re: Capital One Canceled Our Cards

NRB525 — Fri, 26 May 2017 13:15:34 GMT

@Anonymous wrote:
Lesson learned - the hard way!

Thanks for sharing OP. Sorry to hear about the closures, my experience with CapOne is much better, so I hope yours improves as well.

Re: Capital One Canceled Our Cards

Shooting-For-800 — Fri, 26 May 2017 15:25:35 GMT

@Anonymous wrote:
Yep. Gift cards will create AA with some lenders on new rewards accounts. The fact that it was almost 50% of your spend on that purchase is what got you flagged.

They will take you back after 180 days in the naughty chair: http://www.doctorofcredit.com/saving-your-credit-cards-from-shutdown/#Capital_One

I have spent thousands on gift cards using capital one and never had an issue. Knock on wood.

Re: Capital One Canceled Our Cards

Anonymous — Fri, 26 May 2017 17:43:48 GMT

@Anonymous wrote:
@fltireguy wrote:
I strongly disagree with the GC reasoning

A merchant DOES NOT report itemized details of a MC/Visa purchase. It is simply a dollar amount. That's all. Dollar amount, date, time, merchant, etc.... CapOne had NO idea what that transaction entailed - the only possible exception being a few $250.00 transactions, etc... exact dollar amounts that could have possibly been a GC purchase, but, again, they have no way to verify
That's not entirely true but discussing it at MyFico is strongly against the rules. Let's just say there are third party "data mining" companies whose sole business is detecting these kinds of spends and reporting them to credit card providers.

You are correct, the credit card companies know exactly what you are buying and they have many ways of doing it.

1. MCC Codes classify everything by store type. And they classify everything it is just not an "Dollar amount, date, time, merchant, etc."

2. All reciept are electronically stored and OCR'd for the purpose of datamining so they know everything that is on your reciept. Do not believe me do a dispute and they will send you electronic copies of your exact reciept to prove to you it is a valid charge.

3. As far as gift cards though, if they are a VISA, MC, AMEX etc the transaction ID that paid for them is relayed with the activation of the gift card to be activated on the network. So they can tell which and if a credit card was used to pay for it and also what gift card this purchase is tied to. How do you think if a stolen credit card is used they track down the gift cards and shut them down. All this is tied together.