"Not Happy With Cap One - For Once"
Capital One® No Hassle Cash(SM) Rewards - Excellent Credit Review
Written by: wildrage2 on 2009-05-23
Overall Satisfaction
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wildrage2's review: 
I just got a packet in the mail stating that the APR on both of my Capital One cards was being raised from 14.8% to 22.9%.
The only reason they gave me was "This increase is based on your account's current Purchase rate, the length of time you've had this rate and account, as well as the challenging economic environment."
It pisses me off that I have to pay for other people's indescretions, but that looks like the way everything is going in the country right now... Great stuff.
They noted that I can cancel my account to avoid the increase, and that once it was canceled it could never be reopened. I won't cancel my account, but you can be sure that I'm NEVER leaving any kind of balance on it. I **used** to use Capital One very heavilly, and it was the one card that I would let carry a balance, but not any more. I'm waiting for their next move to be cutting credit limits.
I have 2 cards from Capital One - a standard platinum and this No Hassle Rewards. I've had one account for 18 months and another for 8 months, used them heavilly, and never missed a payment. I also have a savings and checking account with them. You've gotta love the way that they reward their good customers!
I just got a packet in the mail stating that the APR on both of my Capital One cards was being raised from 14.8% to 22.9%.The only reason they gave me was "This increase is based on your account's current Purchase rate, the length of time you've had this rate and account, as well as the challenging economic environment."
It pisses me off that I have to pay for other people's indescretions, but that looks like the way everything is going in the country right now... Great stuff.
They noted that I can cancel my account to avoid the increase, and that once it was canceled it could never be reopened. I won't cancel my account, but you can be sure that I'm NEVER leaving any kind of balance on it. I **used** to use Capital One very heavilly, and it was the one card that I would let carry a balance, but not any more. I'm waiting for their next move to be cutting credit limits.
I have 2 cards from Capital One - a standard platinum and this No Hassle Rewards. I've had one account for 18 months and another for 8 months, used them heavilly, and never missed a payment. I also have a savings and checking account with them. You've gotta love the way that they reward their good customers!
11 Comments
Comment 1 by brian23
I Got The Same..... 
on 2009-05-23
Notice in the mail for my standard platinum. It's just another sign of the current economic times we are facing, I wouldn't take it that personal...
on 2009-05-23 Notice in the mail for my standard platinum. It's just another sign of the current economic times we are facing, I wouldn't take it that personal...
Comment 2 by wanderer
Cap One Interest Rate Increase on 2009-05-23
Thanks for the posting. Just got the exact same letter with similar interest rates. I closed my account after four years. I treated them with always paid on time. It was the principle of the thing!
on 2009-05-23 Thanks for the posting. Just got the exact same letter with similar interest rates. I closed my account after four years. I treated them with always paid on time. It was the principle of the thing!
Comment 3 by wildrage2
Not Personal on 2009-05-23
I'm not taking it personally, but I don't think we should be any less mad because they are ripping off everybody instead of singling people out :)
on 2009-05-23 I'm not taking it personally, but I don't think we should be any less mad because they are ripping off everybody instead of singling people out :)
Comment 4 by rockin35
Sign Of The Times.... on 2009-05-23
Well, its truly a sign of the times. Who would have thought Capital One would be raising APR"s, normally their APR's don't fluctuate that often. The banks are desperate to rake in as many profits as soon as possibly and with the least amount of associated production/operating costs. I guess it's easier for them to make this change, because consumers can't afford to pay off a $5000 credit card bill in 45 days. A more realistic approach would be 12 months to 16 months in their eyes. I'm angry about all this to,... For me it has a great deal to do with princples and tarnished trust as a loyal consumer at this point.
Me... Paying on time each month is what has helped sustain my FICO score and manage my debt with lower APR's, well now the game has changed. So it gets under peoples' skin and who wouldn't be upset about something like this. Join the club!!
If you can, try keeping the card open until you can do a BT with a lower APR. Rockin35
on 2009-05-23 Well, its truly a sign of the times. Who would have thought Capital One would be raising APR"s, normally their APR's don't fluctuate that often. The banks are desperate to rake in as many profits as soon as possibly and with the least amount of associated production/operating costs. I guess it's easier for them to make this change, because consumers can't afford to pay off a $5000 credit card bill in 45 days. A more realistic approach would be 12 months to 16 months in their eyes. I'm angry about all this to,... For me it has a great deal to do with princples and tarnished trust as a loyal consumer at this point. Me... Paying on time each month is what has helped sustain my FICO score and manage my debt with lower APR's, well now the game has changed. So it gets under peoples' skin and who wouldn't be upset about something like this. Join the club!!
If you can, try keeping the card open until you can do a BT with a lower APR. Rockin35
Comment 5 by meya
Same Here on 2009-05-23
Mines went from 10% to 17.9% for Purchases and Balances Transfers, 24.9% on Cash Advance, and a Penalty rate of 29%, as of July 2, 2009. I just got the letter a couple of days ago, but I did not know that it consisted of an increase. I pushed it to the side like it was just another blank check or a preapproval car loan.
Yes sir, the back of the letter, inside the "BLUE BOX" clearly states that we can choose to decline the changes to our rates and close the account by calling 18800-214-3755 by 8:00 p. M. ET July 28. This is so wrong, how could they do this to those they are making money from? I really feel like they seen that I was paying them down to zero and was hardly using the card, so they probably figure they were not going to make any money off of me anyway. Oh well, forget it, what can I say? Nothing but pay them off, decline the new APR, or just sock-drawer it.
on 2009-05-23 Mines went from 10% to 17.9% for Purchases and Balances Transfers, 24.9% on Cash Advance, and a Penalty rate of 29%, as of July 2, 2009. I just got the letter a couple of days ago, but I did not know that it consisted of an increase. I pushed it to the side like it was just another blank check or a preapproval car loan. Yes sir, the back of the letter, inside the "BLUE BOX" clearly states that we can choose to decline the changes to our rates and close the account by calling 18800-214-3755 by 8:00 p. M. ET July 28. This is so wrong, how could they do this to those they are making money from? I really feel like they seen that I was paying them down to zero and was hardly using the card, so they probably figure they were not going to make any money off of me anyway. Oh well, forget it, what can I say? Nothing but pay them off, decline the new APR, or just sock-drawer it.
Comment 6 by wildrage2
APR on 2009-05-24
The letter does say that any balance that you have on it before Jul 1 will still retain the original, lower APR, and it will be known as the 'Promo Rate,' so even if you have a $5k balance and can't pay it of, as long as you don't charge anything else you'll still have the same original rate (I think). I just got sort of depressed and let down when I got both the flyers in the mail... I thought Cap1 had our backs!
on 2009-05-24 The letter does say that any balance that you have on it before Jul 1 will still retain the original, lower APR, and it will be known as the 'Promo Rate,' so even if you have a $5k balance and can't pay it of, as long as you don't charge anything else you'll still have the same original rate (I think). I just got sort of depressed and let down when I got both the flyers in the mail... I thought Cap1 had our backs!
Comment 7 by colonative
Increase on 2009-05-24
I received the change in terms letter a few months ago and they just implemented them for May 2009. I was one of the lucky ones in that my purchase APR stayed the same but my cash APR skyrocketed to 24.9%.
As others have stated, this is the sign of the times. The banks are raising APR's because it is getting more expensive for them to borrow money to lend to us. Charge offs and bankruptcies are at an all time high. Plus with the new laws going into effect the banks are raising rates now while they can.
This is going to effect everybody at nearly every financial institution, so people can't just start closing down accounts. Going forward, credit is going to become a lot more expensive and harder to obtain.
I really do suggest that everybody look into a credit card from a credit union, the big banks are just getting scary.
on 2009-05-24 I received the change in terms letter a few months ago and they just implemented them for May 2009. I was one of the lucky ones in that my purchase APR stayed the same but my cash APR skyrocketed to 24.9%.As others have stated, this is the sign of the times. The banks are raising APR's because it is getting more expensive for them to borrow money to lend to us. Charge offs and bankruptcies are at an all time high. Plus with the new laws going into effect the banks are raising rates now while they can.
This is going to effect everybody at nearly every financial institution, so people can't just start closing down accounts. Going forward, credit is going to become a lot more expensive and harder to obtain.
I really do suggest that everybody look into a credit card from a credit union, the big banks are just getting scary.
Comment 8 by thomas1
CAP ONE RATE INCREASE on 2009-05-25
I guess I'm in the club now! Cap One sent me one of those notices this week. Same reasons as Wildrage. My purchase rate went from 10.4% to 17.9%. I guess I expected worse than that, really. The cash rate went to 22.9%
We all knew they would follow suit, just like the big boys, it was just a matter of time. Anyway, I fired off a nasty letter after receiving the notice, directly to Richard Fairbank's office. We'll see, I don't expect much of anything to change, but I had to vent on them. I have the Rewards Cashback with a 4.5k line, never late, ocl, etc. Utilization has been heavy, but I pay in full each and every month, sometimes, 3-4x a month. Depending on their response, I may even withdraw all of my monies on deposit, and cash in my stock, which isn't doing so hot anyway. I hate a sneaky company like that, but they will reap what they sow in the end. So, my plan is to use the card for $5.00 every couple months, and pay it off, just to keep them reporting. In the meantime, i'll stay with Citi and Discover, who have not raised my rates at all, just my limits.
But, watch your FICO scores, and check before you use your cards, you never know what surprises you will encounter. Good customers getting the shaft, but the presidents new rules will go in effect in 2010, and they are all out for new ways to get us at every angle.
I'll inform the forum after I get a response from my letter.
on 2009-05-25 I guess I'm in the club now! Cap One sent me one of those notices this week. Same reasons as Wildrage. My purchase rate went from 10.4% to 17.9%. I guess I expected worse than that, really. The cash rate went to 22.9%We all knew they would follow suit, just like the big boys, it was just a matter of time. Anyway, I fired off a nasty letter after receiving the notice, directly to Richard Fairbank's office. We'll see, I don't expect much of anything to change, but I had to vent on them. I have the Rewards Cashback with a 4.5k line, never late, ocl, etc. Utilization has been heavy, but I pay in full each and every month, sometimes, 3-4x a month. Depending on their response, I may even withdraw all of my monies on deposit, and cash in my stock, which isn't doing so hot anyway. I hate a sneaky company like that, but they will reap what they sow in the end. So, my plan is to use the card for $5.00 every couple months, and pay it off, just to keep them reporting. In the meantime, i'll stay with Citi and Discover, who have not raised my rates at all, just my limits.
But, watch your FICO scores, and check before you use your cards, you never know what surprises you will encounter. Good customers getting the shaft, but the presidents new rules will go in effect in 2010, and they are all out for new ways to get us at every angle.
I'll inform the forum after I get a response from my letter.
Comment 9 by wanderer
Capital One Platinum Visa Rewards on 2009-05-27
Closed my account. They raised my interest rate from 7.9% to 17.9% on purchases plus cash at 23.4%. Also had an AF of $19.00. Credit line was from the step program and I was not able to raise it above $750. Reason, bankruptcy in 09/2001. Funny how the major banks are past all that. Chase is at $13,500 CL plus their flexible rewards program and 10.24%. Time to move on.
on 2009-05-27 Closed my account. They raised my interest rate from 7.9% to 17.9% on purchases plus cash at 23.4%. Also had an AF of $19.00. Credit line was from the step program and I was not able to raise it above $750. Reason, bankruptcy in 09/2001. Funny how the major banks are past all that. Chase is at $13,500 CL plus their flexible rewards program and 10.24%. Time to move on.
Comment 10 by marym
Same Thing Here on 2009-05-28
My husband got the same letter about 2 weeks ago and I just got one yesterday. Let's just say capital one won't be in my wallet!
on 2009-05-28 My husband got the same letter about 2 weeks ago and I just got one yesterday. Let's just say capital one won't be in my wallet!
Comment 11 by wanderer
Capital One Leave Home Without It on 2009-05-29
GADDS! Enjoyed the sharing of all the Capital One hits on terms and conditions. At least I don't feel alone. Reminds me of closing my American Express accounts. "Don't Leave Home With It In Our Wallets! Guess it was time for me to focus my use on the big names and just move on! One less card to carry.
on 2009-05-29 GADDS! Enjoyed the sharing of all the Capital One hits on terms and conditions. At least I don't feel alone. Reminds me of closing my American Express accounts. "Don't Leave Home With It In Our Wallets! Guess it was time for me to focus my use on the big names and just move on! One less card to carry.
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Disclaimer: This content is not provided by Capital One. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by Capital One. Review content is powered by Finance Globe.
