Capital one changing rate??

Billy-no-Money

Cheers clio - fortunately I'm a step ahead at last so as long as I keep my job (which looks pretty safe at the moment) - I should be OK. Cap One was the last variable rate debt, so now all my debt's fixed and most of it's under 7% - it's just a case of get my head down and pay it back. :money:

PigginSkint

I have had a similar letter from Capital One. My interest rates are increasing to 29.94% for purchases, cash advances, and balance transfers. However it does say that this does not apply to balance transfers made before November 2005. My only transaction (apart from payments of course!) is a balance transfer made in May 2005. (I currently owe just under £1000)

So it would seem I'm O.K....except that I am given 2 options to opt out of the new rates (1) pay off in full (2) continue to pay off at old rates - to arrange this I need to phone them up, destroy the card and make no new transactions. Once balance is cleared phone them again to close account.

Sounds like a phone call is definitely the order of the day, but it would appear that I will actually avoid the whacking interest rate hike. Phew!

geoffarm

Just received a letter from Capital One upping my rate from 14.5% to 29.88% yes TWENTY NINE . EIGHT EIGHT:eek:

Good job I recently cleared that card. Spoke to them to see if they would move my account over to the 9.9% (NOT 6.9% as on this site). Didn't want to know even though I have been with them for 6 years and never missed a payment.

They said Cancel the card and apply on-line for the new one.

paintbrush

I received my Capital One letter today telling me my rate was rising from 15.82% to 23.96%, a rise of over 8 points or 51.5% (you choose).
They told me it was due to "changes in the credit environment" and it was costing them more to lend - b*ll*cks!!
Capital One have joined MBNA in trying to rip off their customers even if like me, have always paid on time and more than the minimum payment required.
I'm paying my card off at the existing rate, have cut my card up and will write to them when I've cleared my debt to confirm the closure of my account.
I'll more than likely take the opportunity to tell them to stick their credit card account where the sun doesn't shine.
Anyone trusting Capital One is deluded.
Do not do business with them and warn others off

superslayeruk

I too recieved a letter from Capital one yesterday also telling me how it was costing them more to lend blah blah blah and that STANDARD rates would be going up to 9.94% on purchases and balance transfers. As i am on a life of balance transfer rate i did not think that this would apply to me. After a closer look i still wasnt sure so i called them up and was told that unless i opted out before 20 Feb 09 i would be transferred to the 9.94%. I have now done this and i told the CS rep that the letter was misleading and many people on balance tranfers rates were likely to get penalised due to how misleading the letter was, she said that she would pass these comments on ( i wont hold my breath!) However anyone on a balance transfer should get straight on the phone and opt out (you will no longer be able to spend on your card and will have to close the account once the balance is paid off in full) Or you will be seeing a new rate in March!

Good luck!

niceguyed

I'd pay it off at the 5.9 and let them close the account. No doubt they will be back again increasing the rate as and when they see fit. I had a Cap One card with the same rate of 5.9% "for life". Got the same letter. Haven't used it much but when I do I pay off the balance. Little things have irritated me about them for a while. Sending junk mail when I ask them not too. I emailed them about the hipocrisy of this when I now use the e statement service. The change of the 0800 number to a 0845. Getting through to a indian call centre where we both have difficulty understanding one another. It took an age to stop them sending me those blasted credit card cheques! Now an additional 4% rise. I voted with my feet and closed my account today. Going to have a look at the Barclaycard Simplicity I think. I just use my Amex Plat card for the bashback at the moment but need another card for where this is accepted.

AMILLIONDOLLARS

I don't see how they can change their for life terms. Surely this is case for the FSA. I too got this letter, and to be honest I didn't take much notice of it. It stated from memory that this effected customers who took out a credit card after 2004?? My deal was for life at 3.9%. I will have to give this letter another read, but a complaint should be the order of play for everyone!!

AMD

vivaladiva

I came over here for a rant against Capital One's interest hike. Mine has only gone up 2%, so having read the rest of the thread, I think I'll get back in my corner and shut up:rolleyes:. I did think I was on a fixed rate deal. Off to investigate now.

Just got off the phone to Capital One, with an interesting outcome. I've done a balance transfer to my Capital One account. Is she absolutely barking mad I hear you ask! Quite the contrary. I have transferred the balance at my existing rate, which I can freeze if I opt out of the rate rise before 20th Febuary. I'm on a lower rate than I thought I was, so it makes sense. For once, brilliant advice from their call centre:D.

PigginSkint

To update:

I phoned Capital One today and said that as my balance transfer was done before November 2005, would my APR stay at the promotional rate? Yes was the answer. Do I need to do anything else? No! So there we are then! Phew!

windswept

Our rate has shot up to 19.88% - only 3 months after doing an £8k "life of balance" ( yeah, right!:rolleyes: ) transfer at 9.9%, I've emailed and queried it and also stated that we would take option 2 on the letter, the response we got was that the rate will go up, no mention of freezing it, so a phone call is now needed:mad: .
How can they get away with upping the interest on life of balance?

We also have 2 much smaller "for life" balances on a Nat west and a barclaycard - I hope they don't start pigging about!