topic Re: Capital One Interest Rate Issue in Credit Cards

Capital One Interest Rate Issue

shane82388 — Mon, 20 Dec 2010 04:03:42 GMT

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?

Re: Capital One Interest Rate Issue

Anonymous — Mon, 20 Dec 2010 07:46:18 GMT

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.

Re: Capital One Interest Rate Issue

chasmith — Mon, 20 Dec 2010 12:39:47 GMT

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).

Something like:

Dear Crap1:

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.

Re: Capital One Interest Rate Issue

MarineVietVet — Mon, 20 Dec 2010 17:40:32 GMT

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".

Re: Capital One Interest Rate Issue

BungalowMo — Mon, 20 Dec 2010 17:52:50 GMT

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.