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

[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.