Goodbye, CapitalOne

[gerisullivan]

CapitalOne's "important notice of a change in terms" arrived in Monday's mail. Decline the terms by 8pm July 28, 2009, or watch my annual interest rate go from 8.53% to 17.9%.

I didn't wait until July 28th, or even July or June 1st. I called Monday evening. The account will be closed in July or August, and I'll pay off the balance(s) at the existing terms. The 6.99% rate that's dropping to 4.99% next spring would have happened anyway, but this way the 1.99% money will only go up to the old purchase rate rather than the new one when its promotional period disappears.

I find myself hoping CapitalOne goes out of business. In my current statement, they're bragging about how they're building "Trust. Worthy. Banking." and paying an entire 2.01% interest on their online savings accounts. Color me not convinced. Not in the least bit convinced.

The whole "here, borrow as much as you want at 1.99% for six months then pay your usual rate on the remaining balance after that time" followed three months later by "we're more than doubling your usual interest rate" certainly reeks of entrapment to me. Especially when the offer is sent to someone already carrying a hefty balance on the account that's under a "until the loan is repaid" interest rate, thus burying the higher interest money so that monthly payments are barely applied to it.

I don't like the fact that closing the account is likely to hurt my credit score.

I'm sorry CapitalOne would rather lose any future business with me than continue offering the sort of rates that both made them money and made them attractive in the first place. And I somehow doubt that my closing my account will slow the almost-weekly arrival of new offers from them for business accounts, personal loans, and similar services. I somehow suspect those will soon be accompanied by offers for new CapitalOne accounts...and at lower rates than 17.9%.

I'll be glad when July 2010 comes and credit card payments have to be applied in ways other than those that only maximize the lender's profits. And even happier when my CapitalOne balance is paid off and they never earn another penny off me.

Comments

[voidampersand.livejournal.com]

I have a card where HSBC abruptly lowered the credit limit from $7000 to $1400, when I had just about $1400 in charges on it. I paid it off but haven't canceled it. I'm just going to keep using it for my internet access, which is a recurring $19.95 monthly charge, and pay it off every month. They can enjoy making almost nothing off of me from now on.

[gerisullivan.livejournal.com]

That sounds like a fitting plan. They'll still have the income from the internet provider, but no interest from you.

The credit providers are in trouble, but their actions are going to send more people like me over the brink of bankruptcy. That will only increase their losses.

[sethb.livejournal.com]

Weren't you going to churn that account when the sucker rate ended and they (or anyone) offered you a new sucker rate card?

[gerisullivan.livejournal.com]

My problem was taking the sucker rate when I had a good "until it's paid off" deal from them. The total debt on that account is enough that I'll have a hard time moving it to another account on a no-fees basis. I was willing to live with the 8.58% if I had to; I am not willing to live with 17.9% for more than a single month under any conditions, and those rare times when I do live with a high rate for a week or two until some money I'm waiting for comes in, it's never for the kind of balance I have on CapOne.

[patty1943.livejournal.com]

If you google CEO Capital one, you can find out his name and send him a personal letter. I keep my cards even after I pay them off, but use them rerely.
A few years ago I had MBNA cards that were automatically paid out of Bank of America. BOA bought MBNA and without my permission or knowledge (I didn't check because I'd set it up to be automatic) they canceled the automatic payments. I didn't notice for 3 months. I called, was on the phone for hours and got no satisfaction. Meanwhile the rate is up and the late charges accruing. So I wrote a letter to the CEO stating exactly what happened and that I wanted the interest rate returned to what it was, the excess interest returned, the late fees returned, etc. Two months later his personal assistant called me and all that happened. The other thing is the person who answers the phone can never make exceptions. Gotta ask for someone who can make the decision to return your rate to it's old rate or lower it if you are a good customer. Supervisor or supervisor's boss or whatever. I have a lot of luck going that route too.
I love screwing them back by having one charge on a card that is paid off each month. HaHAHA? (evil laugh)

[apostle-of-eris.livejournal.com]

. . . and the poor spear catcher who answers the phone has to start by apologizing for his/her/its gigantic exploitive employer.
One of the first lessons in getting results over the phone is to *START* with, "I'd like to speak to your superior, please." The poor character answering the phone isn't empowered to do a thing, anyway. You have to get up at least one level (the next one up is a lot harder to get to) to get anything done.

[gerisullivan.livejournal.com]

Huh. That's interesting. I've had several first line customer service reps make me offers I wasn't aware of or otherwise work things in my favor over the years. Yes, I've asked to speak to a supervisor from time to time, but I've had a surprising amount of luck at the first level.

[apostle-of-eris.livejournal.com]

Before the headlines and harum-scarum of the last year or so, it was well-known to people who followed that sort of news, that the major banks were already bankrupt - except for credit card interest, charges, and fees.

[galacticvoyeur.livejournal.com]

For the last year or so I've been getting numerous "pre-approved" card offers addressed to myself / PROmote Communications, at our NE address. Some weird mail merge must have happened out there in Slimeball Land. (I forget who the senders are.)

Ya want I should maybe quit shredding the offers and sign up for a bunch of them for you? (Joke, Moshe!)

[marsgov.livejournal.com]

Congress threatened to impose fee caps, restrictions, and whatnot on credit card companies, and as a result every credit card company is raising fees and interest rates immediately, whether they need to or not.