topic Re: Capital One adverse action in Credit Cards

Capital One adverse action

SouthJamaica — Wed, 07 Jun 2017 16:04:58 GMT

Well I've been hearing recent reports of Capital One, which used to be a 'no-hassle' lender, taking adverse action against customers for no good reason.

And now I'm the recipient.

A few days ago they closed my Cap One 360 personal checking and savings accounts and overdraft line of credit.

Yesterday they placed on "restricted" status my 2 credit card accounts, my Spark business account, and my personal Platinum account (which had been upgraded to act like a Quicksilver account).

It will be real interesting to see what their lame reasons are.

I received an email that the reason for closure of the Cap One 360 accounts was that they weren't being used for commercial purposes (which is interesting since they weren't commercial accounts ). I've had those accounts for about 15 years, back from when they were ING Direct. When I called customer service about the closure I spoke to an automaton who wouldn't explain. I spoke to his supervisor, who also acted like an automaton and also wouldn't explain.

I haven't yet received the excuses for restricting the credit card accounts.

I have been a strong advocate for Capital One in this forum, suggesting that people should overlook their many faults (high interest, triple pulls, reporting business balances on personal accounts, etc) and remember that it's a bank that has been available to borrowers who were shunned by other banks and it's a bank that doesn't hassle people with adverse action if they pay their bills on time.

That's over.

Here's the basic data:

1. Lately I haven't been using the personal checking and savings accounts much, but have always maintained them in good standing and maintained small balances.

2. The Spark card is used the way one would expect it to be used; I am constantly making business purchases with it, and paying it down to zero, usually before the statement cuts.

3. The Platinum card I have been using mostly for balance transfers, since they have been constantly making no-fee no-interest balance transfer offers to me. I always pay these off before the statement cuts.

4. I've had the credit cards about 5 years, and the checking and savings accounts about 15 years. I've never had a late payment or an overdraft with any of them.

5. My overall revolving account utilization at the time this occurred was 3%.

The only thing that would make sense as a reason to take adverse action of any kind is that they could have decided that my Platinum card wasn't profitable for them since I wasn't making a lot of purchases with it, and was paying them no fees or interest either. But it seems to me that that's their problem not mine. If they wanted to make a profit why did they offer me no-fee no-interest balance transfers? And if that was the reason I don't see why they would close all of my accounts over it.

Re: Capital One adverse action

bourgogne — Wed, 07 Jun 2017 16:23:20 GMT

very sorry this happened to you. i dont think the issue in this case is with cap1, I think its closer to Total revolving 463000. no judgements but that is a lot of exposure no matter how you sugar coat it.

Re: Capital One adverse action

Anonymous — Wed, 07 Jun 2017 16:30:52 GMT

Sorry to hear about this happening. Very difficult to understand some of these banks. Seems like that they occasionally pull a name out of a hat and poof your accounts are closed. I only have one CO product, a Venture and only use it for BTs as well.

Re: Capital One adverse action

JustBPatient — Wed, 07 Jun 2017 16:37:23 GMT

IMO with your lineup, good riddance. Strong profile and assuming no funny business on your end, its their loss!

Re: Capital One adverse action

bourgogne — Wed, 07 Jun 2017 16:38:12 GMT

@Anonymous wrote:
Sorry to hear about this happening. Very difficult to understand some of these banks. Seems like that they occasionally pull a name out of a hat and poof your accounts are closed. I only have one CO product, a Venture and only use it for BTs as well.

if someone has ~10x the # of cards the average person has then I think its very easy to understand. couple this to nearly $500K in available credit then I think its easy to see how ones results may vary. sucks but not all that surprising imo

Re: Capital One adverse action

SouthJamaica — Wed, 07 Jun 2017 16:45:11 GMT

@JustBPatient wrote:
IMO with your lineup, good riddance. Strong profile and assuming no funny business on your end, its their loss!

Thanks. It's funny because people are always recommending ditching Capital One cards that are no longer needed, but I have remained steadfastly loyal and spoken up repeatedly in Capital One's defense on this forum.

No more

Capital One can go to straight to hell.

Re: Capital One adverse action

SouthJamaica — Wed, 07 Jun 2017 16:46:22 GMT

@Anonymous wrote:
Sorry to hear about this happening. Very difficult to understand some of these banks. Seems like that they occasionally pull a name out of a hat and poof your accounts are closed. I only have one CO product, a Venture and only use it for BTs as well.

I decided to call the 'account specialists' and got yet another robot

Re: Capital One adverse action

Sandman771 — Wed, 07 Jun 2017 16:49:16 GMT

I have two CO's with Cap one now as wel as a paid auto loan. Once these two baddies are handled properly and balance shows $0 I will never bother them again for anything in the next 40 years. It was all my fault, but still they may not hold a grudge but I do.

Re: Capital One adverse action

Anonymous — Wed, 07 Jun 2017 16:52:02 GMT

CPFB might want to take a look closely at your AA letter. Would be really terrible if it violated numerous laws and regulations.

Re: Capital One adverse action

UncleB — Wed, 07 Jun 2017 16:56:41 GMT

Well dang... I was hoping we had heard the last of the Capital One shenanigans...

I know you're over it (I would be as well) but I would also be tempted to push this to the EO to at least get a 'proper' answer on why they closed not only your cards but your deposit accounts, which to me was especially over the top. This seems like they were concerned about something other than just exposure, but I could be mistaken.

In any case I'm sorry you're having to deal with this, and I know we all appreciate you're coming here to warn us as well.

Re: Capital One adverse action

fltireguy — Wed, 07 Jun 2017 17:04:07 GMT

SJ - I am so sorry that this hapened to you. ( I would EXPECT this from Sync..LOL)

I agree with UncleB - WHY was the bank account closed as well? Thats the most puzzling part of this all

Re: Capital One adverse action

SouthJamaica — Wed, 07 Jun 2017 17:05:49 GMT

@UncleB wrote:
Well dang... I was hoping we had heard the last of the Capital One shenanigans...

I know you're over it (I would be as well) but I would also be tempted to push this to the EO to at least get a 'proper' answer on why they closed not only your cards but your deposit accounts, which to me was especially over the top. This seems like they were concerned about something other than just exposure, but I could be mistaken.

In any case I'm sorry you're having to deal with this, and I know we all appreciate you're coming here to warn us as well.

You're right that I'm over it.

I too was tempted and did email the EO to see what's up with them. Will of course report back, but I'm not hopeful of more than a robotic response.

I have a strong hunch that it was because of my no-fee no-interest balance transfers with the Platinum card, but I don't think they'll admit it.

Re: Capital One adverse action

Anonymous — Wed, 07 Jun 2017 17:21:27 GMT

@bourgogne wrote:
@Anonymous wrote:
Sorry to hear about this happening. Very difficult to understand some of these banks. Seems like that they occasionally pull a name out of a hat and poof your accounts are closed. I only have one CO product, a Venture and only use it for BTs as well.
if someone has ~10x the # of cards the average person has then I think its very easy to understand. couple this to nearly $500K in available credit then I think its easy to see how ones results may vary. sucks but not all that surprising imo

I certainly understand that the average poster here, including myself, is more at risk for AA due to the number of cards and credit limits. Why I made the comparison to pulling a rabbit out of the hat is that there seems to be no rhyme or reason why they take AA against certain people and not others. Closing credit cards because you want to cut your liability for is one thing but closing checking and savings accounts is entirely different to me.

Re: Capital One adverse action

AverageJoesCredit — Wed, 07 Jun 2017 17:33:27 GMT

Dang, sorry to hear SJ.

Appreciate you letting us know , we all know weird things like this can happen but it stinks not to know why. Loyalty is not a word in bankers vocabulary. Money, now thsts another entity

The bank accounts is a drastic step. But at least you have options , give your spend to Penfed or others who dont spook as easily ( lol i know they can all get spooked bid Adieu, Adios, goodbye, to the steadfast Cap One, its fish eat fish world now

Re: Capital One adverse action

SouthJamaica — Wed, 07 Jun 2017 17:40:12 GMT

@Anonymous wrote:
@bourgogne wrote:
@Anonymous wrote:
Sorry to hear about this happening. Very difficult to understand some of these banks. Seems like that they occasionally pull a name out of a hat and poof your accounts are closed. I only have one CO product, a Venture and only use it for BTs as well.
if someone has ~10x the # of cards the average person has then I think its very easy to understand. couple this to nearly $500K in available credit then I think its easy to see how ones results may vary. sucks but not all that surprising imo
I certainly understand that the average poster here, including myself, is more at risk for AA due to the number of cards and credit limits. Why I made the comparison to pulling a rabbit out of the hat is that there seems to be no rhyme or reason why they take AA against certain people and not others. Closing credit cards because you want to cut your liability for is one thing but closing checking and savings accounts is entirely different to me.

I'll tell you one thing. Over the past several years I've been on a campaign to diversify... i.e. to develop relationships with other, & better, financial institutions. I don't like having all of my eggs in one basket.

Now that this has happened, I am so glad I chose that course. If Capital One were my only lender (as it was just 3 short years ago) I would be in a panic right now.

Since I have credit now with a number of other, better, lenders, this event doesn't cause me a problem at all, other than the time I had to waste removing the Spark card as a payment method from vendors with whom I use autopay.

Re: Capital One adverse action

Gmood1 — Wed, 07 Jun 2017 17:57:22 GMT

Sorry to read of your troubles. Guess I should cower in fear and run...NOT! lol

I do have a 360 Money Market account with Cap One. I'll continue to diversify. I'm not going to let them detour me.

Really not understanding why they're nitpicking long time customers like yourself.

My TCL are in the neighborhood of yours.

Re: Capital One adverse action

SouthJamaica — Wed, 07 Jun 2017 18:06:28 GMT

@Gmood1 wrote:
Sorry to read of your troubles. Guess I should cower in fear and run...NOT! lol
I do have a 360 Money Market account with Cap One. I'll continue to diversify. I'm not going to let them detour me.
Really not understanding why they're nitpicking long time customers like yourself.
My TCL are in the neighborhood of yours.

As I spent a lot of time removing my Spark card from the various vendor sites where I had it as my auto pay card I realized.... I was doing a LOT of business with Capital One. Not smart business to toss me aside like a used rag.

Re: Capital One adverse action

Anonymous — Wed, 07 Jun 2017 18:08:27 GMT

This unfortunate occurence makes me more determined to close out my secured Platinum once I'm in a position to be able to do so, as well as to start looking for a different Mastercard from a less skittish issuer (perhaps a CU that issues Mastercards) once my credit history has built up some more.

Re: Capital One adverse action

805orbust — Wed, 07 Jun 2017 18:16:56 GMT

Dude, that's crazy. I just saw your comments on another similar thread this morning. Looks like the winds of change are blowing and that diversification is not only the smart choice, but the order of the day as well.

Re: Capital One adverse action

Anonymous — Wed, 07 Jun 2017 18:20:43 GMT

@Anonymous wrote:
@bourgogne wrote:
@Anonymous wrote:
Sorry to hear about this happening. Very difficult to understand some of these banks. Seems like that they occasionally pull a name out of a hat and poof your accounts are closed. I only have one CO product, a Venture and only use it for BTs as well.
if someone has ~10x the # of cards the average person has then I think its very easy to understand. couple this to nearly $500K in available credit then I think its easy to see how ones results may vary. sucks but not all that surprising imo
I certainly understand that the average poster here, including myself, is more at risk for AA due to the number of cards and credit limits. Why I made the comparison to pulling a rabbit out of the hat is that there seems to be no rhyme or reason why they take AA against certain people and not others. Closing credit cards because you want to cut your liability for is one thing but closing checking and savings accounts is entirely different to me.

Totally agree with Irish and UncleB on this one. Doesn't make any sense at all. I know any bank can close a credit card account without notice. But why close a checking and saving if they are in good standing. I would definately contact EO. That's what they are there for.