Today, we’re notifying you of a change to the terms of your account. Please take your time and read the following notice carefully so you understand the impact of this change.
Effective November 14, 2010 your account will have a new MINIMUM PAYMENT CALCULATION. Please be aware, YOU CANOT DECLINE the change to your Minimum Payment Calculation.
“If your new statement balance is $25 or less, your new minimum payment will be equal to your balance. Otherwise, we calculate your minimum payment by adding any past due amount to the greater of:
The total of 1% of your new statement balance, plus new interest, plus new late payment fees.”
The change to your minimum payment calculation was based on the following:
The need to review account activity for some accounts
Your account’s current Minimum Payment Calculation
The length of time you’ve had your Minimum Payment Calculation.
OK, I am sober….what’s the point????
At first glance I thought ok ... here's another loophole to the CARD ACT. Upon reading it twice and thinking hey it's best to PIF in the first place anyway. But they do post now how long it would take to pay off the balances by making just the old minimum payment. Increasing the minimum and forcing ppl to pay more of their balances would only help them in the long run if they were just paying minimums and racking up interest fees on ever increasing balances for what?
In this case i don't think it's a bad idea ... it's not a annual fee they are not squeezing more money out of you their just enforcing that you pay more of what you owe. If you got over your head and you can't afford to pay off what you charge because 1 percent cannot be that bad unless your charging up way more than what you can afford then you shouldn't be charging it that much in the first place.
Just my thoughts...
I really have no question...Just trying to decide what the heck they are saying and why they are saying it.
If I am not mistaken minimum payments with Capital One has always been 3% of the balance.
I suppose this means they are reducing my minimum payments in lieu of increasing them to 5%
like Chase has done.
I was under the impression that the Credit Card Companies were trying to keep consumers balances down.
They are a strange lot. I have been receiving all types of Balance Transfers with low APR for various time limits.
To me, I believe they are sending mixed signals because they are loosing a lot of money in Interest and penalties
and are looking for ways to increase the bottom line...PROFIT.
Almost all my cards in the last 6 or so months have increased min to $25
Same for me. I think the $25 is the nain change.
i have 2 capital one cards at $750 each and they are both $15 minimums
Now, that is interesting......maybe I have done something wrong that caused the action.
"OH Well" if it's not one thing it's another.
I do not recall the Terms & Conditions indicating the amount or the percentage of a minimum payment.
No big deal, I guess.
I read an entry on another site, that some consumers have received similar letter, However, they have also been notified
that Capital One will start charging an annual fee beginning November 14, 2010 in the amount of $60.00 per year.
My letter does not indicate any annual fees.
As far as the minimum payment calculations are concerned, it appears I will be going down from 3% to 1% of statement
balance, plus interest and late payment fees.
Anyone else received such a letter?
I got a similarly worded letter, but they are adding an annual fee (payable monthly) to my account. One of the reasons stated was too many delinquent past credit obligations, proportion of revolving account balances to credit limits and recent Capital One account balance.
I have never ever paid this account late and always make more than the minimum payment.
I thought that they weren't allowed to revise your account agreement based on your history with other creditors (which is OLD history, and they are just getting around to penalizing me for it now?). But I guess the new law doesn't keep them from gigging us with fees, just keeps them from raising an interest rate, which they already did before the new law went into effect.
This new law did nothing for consumers but make the banks find more creative ways to screw us over.