topic Re: Capital One - Venture X in Credit Cards

Capital One - Venture X (Complaint)

SanDAgo — Sat, 16 Apr 2022 04:05:13 GMT

This is a message for anyone contemplating the Capital One Venture X card. I have had an existing Quicksilver card for about 15 years and in January 2022 applied for the Venture X. I was instantly approved and began using the card from Feb. 22nd to March 4th. I charged about $4,000 on my way to hit the $10,000 spend to receive the 100,000 miles intro bonus. On March 4, Capital One emails me that there is suspicious activity and asks me to verify information by sending them a copy of 1) my social security card (not the number. they want the card); 2) Driver's license; and 3) proof of residence (bank statement). I uploaded all the required documents through a secured link they provided. In the meanwhile, I paid the full balance of the $4,000 charges.

After 2 days, Capital One rejects the documentation. When I inquire, they responded that I must take a photo of my driver's license and not scan it from a Xerox machine so that they can scan the barcode. I re-submit all the documentation again to Capital One. They confirm the ID, but refuse to confirm my bank statement because they claimed it was incomplete. It is a one page bank statement showing my name, address, account number, balance, and statement date (which must be issued recently within the past two months). I explained I have another account with Capital One (Quicksilver) and they can also use that to verify my information. I call Capital One and they informed me that my account is "PERMANENTLY RESTRICTED," which they explained means that it is suspended and can never be used again.

I informed Capital One that I do not mind, but asked them to refund my $395 annual fee or let me re-apply and they can apply it to the new account. Capital One refuses to refund the annual fee for a card that I had for less than 2 months and for which they permanenly blocked without justification. I wrote to the General Counsel of Capital One asking them to intervene and they had a nice woman call me from Customer Complaints to try to sort it out. Ultimately, she said there is nothing that can be done and they cannot refund the $395.

I would caution anyone from doing business with Capital One after this experience. It is difficult to speak to their customer support when a matter becomes esclated and they provide zero assistance and support. Capital One won't even provide me with information on the account.

I have filed a complaint with the Office of the Comptroller (https://www.helpwithmybank.gov/file-a-complaint/index-file-a-complaint.html) and the Consumer Financial Protection Bureau. My next step is to file a small claims court matter against Capital One for them to refund my $395 annual fee. It is the principal of the matter at this point.

If more of these cases arise, the next step would be a class action lawsuit to penalize Capital One for their deceptive practices.

Re: Capital One - Venture X

Alucard — Thu, 14 Apr 2022 03:32:03 GMT

If all of this is true (and I have no reason to doubt you) the CFPB should intervene on your behalf and force them to either unrestrict your account or provide a plausible explanation to why they did this. The next time you speak with them I would add the following verbiage"

"I believe your actions are violating my rights under the Equal Credit Opportunity Act, which is why you will not tell me exactly why you are doing this".

You will find very quickly that a detailed explanation will be provided or they will reverse the actions taken against you.

Re: Capital One - Venture X

NRB525 — Thu, 14 Apr 2022 05:16:01 GMT

Sorry to hear this happened. Certainly a strange situation for a long time cardholder.

Did CapOne send an actual paper letter outlining why they restricted the account?

Re: Capital One - Venture X

redpat — Thu, 14 Apr 2022 06:02:40 GMT

How was your 4K spent?
It sounds like they shut you down because of synthectic spend for a SUB.

Ebay, PayPal or Venmo?

If that's the case you are DOA.

Re: Capital One - Venture X

SanDAgo — Sat, 16 Apr 2022 04:49:48 GMT

@Alucard Unfortunately, it is all true. Cap One responded to the CFPB saying they are still working on the matter and now they have up to 60 days to respond. Even if they unrestrict my account, the intro bonus offer ends in June so it will be of no benefit. My next step will be to either file a small claims court case to get them to pay back the annual fee $395 (which is inconsequential, but I'm trying to make a point).

Re: Capital One - Venture X

SanDAgo — Sat, 16 Apr 2022 04:50:26 GMT

@NRB525 No. I have requested for them to send a formal letter so that I can use it. They informed me that they will only send a letter stating "We require additional information to verify your account. However, we do not provide a letter for permanent restrictions." In my opinion, it is unfair and a deceptive business practice for Capital One to claim they can no longer provide information on my account, particularly when I have another active account with them at the same residential address that remains open. If they have done this to me, I can only imagine what they have done to others who are not aware of legal rights and remedies.

Re: Capital One - Venture X

SanDAgo — Sat, 16 Apr 2022 03:50:19 GMT

@redpat No. I don't use eBay, Paypal or Venmo. Regular transactions. However, there were overseas transactions (I travel for work and there are no foreign transaction fees for Capital One). I verified all charges and paid in full before the end of the billing cyle for the $4,000 charged. I even purchased Global Entry because they reimburse. If it were fraud, would the fraudster pay for my Global Entry and my utility bills (part of the $4,000 charged). Honestly, Capital One has a poor record but their intro offer, foreign transaction fee waiver, and other Venture X benefits wooed me. I never had problems like this with Citi, Chase (Chase Sapphire cards), or the Amex cards. Something inside tells me let them keep the $395 and let it go, but for this to happen within 2 months after they approve me with a $30K credit limit. They should have just denied me the card if they didn't think it was me.

Re: Capital One - Venture X

redpat — Sat, 16 Apr 2022 10:11:50 GMT

@SanDAgo wrote:
@redpat No. I don't use eBay, Paypal or Venmo. Regular transactions. However, there were overseas transactions (I travel for work and there are no foreign transaction fees for Capital One). I verified all charges and paid in full before the end of the billing cyle for the $4,000 charged. I even purchased Global Entry because they reimburse. If it were fraud, would the fraudster pay for my Global Entry and my utility bills (part of the $4,000 charged). Honestly, Capital One has a poor record but their intro offer, foreign transaction fee waiver, and other Venture X benefits wooed me. I never had problems like this with Citi, Chase (Chase Sapphire cards), or the Amex cards. Something inside tells me let them keep the $395 and let it go, but for this to happen within 2 months after they approve me with a $30K credit limit. They should have just denied me the card if they didn't think it was me.

IMO, Something spooked them about your transactions. They are typically not in the business of stealing $395 AFs.

Also, if they said your bank statements were incomplete and you didn"t supply them additional information because thought it was unreasonable they win.

Re: Capital One - Venture X

pip3man — Sat, 16 Apr 2022 10:33:38 GMT

Just so you know, financial institutions are NOT required to disclose the reason behind their decision to terminate a business relationship. It is embedded in their customer agreement disclosure which you accepted so therefore you are bound by the terms. I say that to say, they can and will close an account for any reason if and when they choose without your consent. Although, I think it's disingenuous of them refusing to refund the full annual fee or at least a prorated portion. What I will say tho, is something about you spooked them because Capital One I know firsthand has very lenient guidelines and it would take something very serious for them to take a drastic action like this.

Re: Capital One - Venture X (Complaint)

Anonymous — Sat, 16 Apr 2022 14:42:33 GMT

Capital One in my experience was not the best company to work with. They are a good starter company but I just don't think they compare to others like chase, Amex, or citi when it comes to the better accounts like the venture or savor. They are a subprime predatory focused company who offers some good cards to established people but imo those good cards are attached to a company that doesn't best support them. Once I built my credit up I left them and it was a great decision.

Re: Capital One - Venture X

CreditCrusader — Sat, 16 Apr 2022 13:00:27 GMT

@pip3man wrote:
Just so you know, financial institutions are NOT required to disclose the reason behind their decision to terminate a business relationship. It is embedded in their customer agreement disclosure which you accepted so therefore you are bound by the terms. I say that to say, they can and will close an account for any reason if and when they choose without your consent. Although, I think it's disingenuous of them refusing to refund the full annual fee or at least a prorated portion. What I will say tho, is something about you spooked them because Capital One I know firsthand has very lenient guidelines and it would take something very serious for them to take a drastic action like this.

1. I'll bet a buffalo nickel they will have to refund a prorated AF amount when the dust settles. Regardless of what Cap 1's policies are, the CFPB is very good at getting these companies to deal fairly with such situations in a manner that satisfies the customer.

2. That may be your experience with them. Others have had nightmare situations to deal with relative to their verification procedures, though Cap 1 is by no means the only CCC to run customers through the wringer. AMEX and Discover have been known to do the same thing...and sometimes legit customers with legit documentation are nixed.

You're 100% correct that these companies can cancel business relationships for any legal means. It is also fact that customers can become aware of what they may deem terrible company policies and choose to not do business with such companies.

That's the beauty of the credit game. There are nearly limitless players and options.

Re: Capital One - Venture X

redpat — Sat, 16 Apr 2022 14:46:34 GMT

@CreditCrusader wrote:
@pip3man wrote:
Just so you know, financial institutions are NOT required to disclose the reason behind their decision to terminate a business relationship. It is embedded in their customer agreement disclosure which you accepted so therefore you are bound by the terms. I say that to say, they can and will close an account for any reason if and when they choose without your consent. Although, I think it's disingenuous of them refusing to refund the full annual fee or at least a prorated portion. What I will say tho, is something about you spooked them because Capital One I know firsthand has very lenient guidelines and it would take something very serious for them to take a drastic action like this.
1. I'll bet a buffalo nickel they will have to refund a prorated AF amount when the dust settles. Regardless of what Cap 1's policies are, the CFPB is very good at getting these companies to deal fairly with such situations in a manner that satisfies the customer.

2. That may be your experience with them. Others have had nightmare situations to deal with relative to their verification procedures, though Cap 1 is by no means the only CCC to run customers through the wringer. AMEX and Discover have been known to do the same thing...and sometimes legit customers with legit documentation are nixed.

You're 100% correct that these companies can cancel business relationships for any legal means. It is also fact that customers can become aware of what they may deem terrible company policies and choose to not do business with such companies.

That's the beauty of the credit game. There are nearly limitless players and options.

I wouldn't make that bet unless I knew all the facts. CO Venture and X version has had many approvals on these forums and this is a rare occasion to say the least that they have taken this action.

Re: Capital One - Venture X

Remedios — Sat, 16 Apr 2022 15:19:00 GMT

Cap One, I think I've only seen them restrict accounts for non-payment, adding multiple unrelated AUs making it appear as if selling if TL is involved, doing multiple BTs at regular APR to buy more time (no interest until statement time), and suspected fraud/abuse.

@SanDAgo Cap One really doesn't do this often, I think they are the last lender I'd associate with sketchy account closures/restrictions, so while you're upset now, I'd still work with them to figure it out.

Less threats, more patience.

Account is not closed, you've already met SUB requirement (you stated you paid $4000.00), so if restriction is lifted, sub should be paid out.

With that said, you might want to look at locations and nature of transactions, in addition to type of merchant.

Perhaps there is nothing there, or something about your spend pattern on this card triggered fraud/abuse detection.

It's possible to mimic that pattern without committing either, to a computer if it looks like a duck, it's undeniably a duck, this wasn't a decision made by human going over each transaction.

It's going to be extremely hard for you to find many examples of "Cap One restricted account for no reason"

I'd still work with them instead of working against them until they complete their internal investigation.

Re: Capital One - Venture X

chuckwood — Sun, 17 Apr 2022 01:58:14 GMT

If the card is that new and you had alot of transactions in a short amount of time and most of the transactions are (out of your own state) let alone overseas then it may raise a flag to any cc company. I know capital one verification can be a pain to get thru. I had to summit information 3 or 4 times a few years ago because I had put a fraud alert on my credit report and they out of the blue restricted both of my cards. The funny thing is I had a car loan thru them also. Just keep with it and it should work itself out. Good Luck !!!

Re: Capital One - Venture X

SanDAgo — Mon, 25 Apr 2022 05:44:20 GMT

@chuckwood I am sure that overseas transactions would have spooked them. But that shouldn't be the case when I have had a Quicksilver for the past 15 years with thousands of overseas transactions from the same city where I travel and work. This is what is so irritating. Never missed a payment, 800 credit score consistently for years (sometimes it is 806, etc. and then dips), USD 30K credit limit pre-approval, and they were constantly begging me to upgrade the Quicksilver.

A mediation center contacted them for mediation (sort of a pre-requisite before filing a legal claim). Thereafter, I will proceed to court for a refund of $395. This is insane to file for $395, but for me it is the principal. There service is horrible.

Re: Capital One - Venture X

SanDAgo — Mon, 25 Apr 2022 05:51:19 GMT

@Remedios Thanks for your response. Honestly, it is the first credit card company that comes to mind when it relates to being sketchy. A friend of mine was a law clerk for a Federal Bankruptcy Judge and informed me that the courts do not like Capital One for their aggressivness against consumers. Set all that aside, I won't judge on their collection tactics. I am only speaking to what happened with me after they approved me for a $30,000 credit limit.

I am not sure if I can post details (screen shots in this forum due to moderator rules, etc. and don't have the time to research the moderator rules). But I am glad to share this information with everyone in full transparency to see what has happened with Capital One. Their customer service is poor.

I offered to apply for a new Venture X and allow them to transfer my annual fee over. I offered to provide further information if they need it to verify. If those options do not work, I told them to just refund my annual fee. We will end up going to court for $395. The way I see it is that they will pay legal counsel to show up and that will be worth more than $395. I just want to make sure they do not get to record my annual fee as a revenue for shutting down an account with no valid reason.

Re: Capital One - Venture X

notmyrealname23 — Mon, 25 Apr 2022 06:10:36 GMT

Aggressiveness, huh?

Here's my DP:

C1 was involved in my Chapter 13 for a thousand or two. Included them in my filing.

They literally never followed up and thus got $0 when the final order was agreed to.

Accepted me back on the spot when I reapplied for a Platinum post BK, six+ years later.

Funny, for how aggressive they are they sure left money on the table with me. (AMEX was far more so, but that's kind of their deal, they don't sell their bad debts, but still took me back, BofA wants nothing to do with me so far, though we will see in a year or two).

Anyway, I am not sure standing on principle about $395 against a large corporation means a whole lot, but you do you. Good luck and let us know how it goes. I'm keeping my VentureX though.

Re: Capital One - Venture X

SanDAgo — Mon, 25 Apr 2022 06:06:09 GMT

@CreditCrusader and @pip3man

Thanks for your replies. Capital One did respond to the CFPB stating:

Dear XXXXX,

We’re reaching out to you regarding your concern to the Consumer Financial Protection Bureau
(CFPB), about not being able to make purchases with your card and your refund request for the
Annual Membership Fee (AMF) on your account.

Our goal is to provide the highest level of quality service to all of our customers. We’re sorry to
hear that the service you received did not meet your expectations.

Our records show that on March 4, 2022, our Fraud Department restricted your account for
identity concerns. After review, the account restriction is permanent, and we are unable to
remove the restriction.

In addition, you also requested a refund for the AMF. We reviewed your account and the terms
for your account and, unfortunately, the account is not eligible for an AMF refund. We have also
confirmed that there was no error found with the AMF billing. I have enclosed your Customer
Agreement which provides additional information about the AMF.

If you have questions or concerns, please call 1-800-955-7070. Our Customer Service
Representatives are available 24 hours a day, 7 days a week.

Sincerely,
Capital One Customer Advocacy Office

Capital One's terms and conditions state the following about fees:

Membership Fee
If your Account has a membership Fee, we may charge
the first membership Fee either on the day you activate
your Card or on the day when you use your Account,
whichever occurs first. If your Account terms include a
$0 introductory Fee, we may charge the first Fee when
the introductory period ends. If it is an annual Fee, we
may then charge it approximately once per year. If it is a
monthly Fee, we may charge it each Billing Cycle.

The CFPB closed the case on the basis that Capital One responded the complaint. I understand this to mean that CFPB won't get involved further and it is necessary to file a legal claim against Capital One.

If Capital One has done this to others, I will file a class action lawsuit regarding unfair business practices for pre-approving an existing and current client, charging a $395 annual fee, and then stating that they cannot verify my identity (when I still have an on-going and current Quicksilver credit card with them). Wouldn't it make sense to close the Quicksilver account immediatley if there is fraud concern on the identity of the same customer?

It is implausible for anyone to say Capital One is acting reasonable and not engaging in dodgy business practices.

Re: Capital One - Venture X

redpat — Mon, 25 Apr 2022 08:05:43 GMT

If these forums are an indication of a statiistical sample, the chances of a CAL are highly unlikely. IMO, this occurrence seemed to only happened to you. Internal counsel will handle this in court, so their cost would be travel and they mybe around your area for other cases anyway.

Re: Capital One - Venture X

Dalmus — Mon, 25 Apr 2022 11:12:00 GMT

Assuming all facts are as stated by OP...

They say that the account was not opened by the OP because they can't verify the identity.

If that's the case, then the money they took from the OP in the form of the AMF is, by their own admission, money stolen from the OP (remember, their claim is that the OP is not the one that opened the account, but the money was most certainly taken from the OP).

If the OP has the disposable time and income to take this to court, it would be fun to watch CapOne be forced to admit the "real" reason they restricted the account, or explain why they are refusing to return stolen money (by their definition) to its rightful owner.

Again, assuming OP is giving us all the pertinent facts.