Capital One's Outrageous Fortune

barrylane

My first post, so be gentle.

I was made redundant at Christmas and signed on on the 5th of January this year. I called Barclaycard to invoke my card insurance, to which they responded quite quickly. I also Called Capital One, who referred me to their insurers, Axa, who promptly failed to send the forms I needed. Called them a couple of weeks later and they then sent these, but then took several weeks more - and several phone calls - before reviewing my case and making a payment to Capital One, in March. In the interim Capital One pestered me with dozens of calls (not always easily understood) and then slapped me with a £12 penalty. I have written to them and told them to forget it or ask Axa for that amount instead.

Apparently, if I fail to pay this £12 within 28 days they will slap interest of 24.040% on the penalty. In an age where the Bank of England has cut its rate to 0.5%, is this kind of outrageous sum not tantamount to usury? This kind of demand is probably within the law, but it is surely beyond the bounds of decency. Has anyone else had dealings like this with Capital One, or indeed with any other credit card company?

Robert_Sterling

Will you be paying the £12 or not paying it?

WaltD

If I were you, I would pay the £12 and then claim it back afterwards.

WaltD

Moggles_2

In the interim Capital One pestered me with dozens of calls (not always easily understood) and then slapped me with a £12 penalty. I have written to them and told them to forget it or ask Axa for that amount instead.

It's a pity you've only just found us and posted.

When an insurance company drags its feet, best practice is to meet the minimum monthly payments required by your credit card provider until the dispute is settled and then reclaim. That way, the phone calls stop and your credit rating remains unaffected.

I realise this advice comes too late, but may alert other users facing a similar situation. These delays are not uncommon.

Please note: credit cards and insurance are two separate services operated by different firms. Axa is your insurer, not Capital One's.

If I were you, I'd pay off the £12 fee ASAP and then reclaim.

It's good to hear your Barclaycard payments were made more promptly.

Very best
M

whiteroom184

barrylane wrote: »

My first post, so be gentle.

I was made redundant at Christmas and signed on on the 5th of January this year. I called Barclaycard to invoke my card insurance, to which they responded quite quickly. I also Called Capital One, who referred me to their insurers, Axa, who promptly failed to send the forms I needed. Called them a couple of weeks later and they then sent these, but then took several weeks more - and several phone calls - before reviewing my case and making a payment to Capital One, in March. In the interim Capital One pestered me with dozens of calls (not always easily understood) and then slapped me with a £12 penalty. I have written to them and told them to forget it or ask Axa for that amount instead.

Apparently, if I fail to pay this £12 within 28 days they will slap interest of 24.040% on the penalty. In an age where the Bank of England has cut its rate to 0.5%, is this kind of outrageous sum not tantamount to usury? This kind of demand is probably within the law, but it is surely beyond the bounds of decency. Has anyone else had dealings like this with Capital One, or indeed with any other credit card company?

this is just another example of how people suffer through company incompetance. i would pay the £12 then complain furiously. It is a very bitter pill to pay it but the rigmarole it will cause by not paying it is not worth it.

Robert_Sterling

Better late than never. Better never late.

barrylane

Many thanks to you all for your responses to my post.

Regarding payment of the £12, I have instead written to the vice president of collections at Capital One in Nottingham (no, he's not the Sheriff) asking why the charge was levied in the first place. I have also asked if he thinks a penalty of nearly 25% for failure to pay on top of the original charge is fair. Obviously, if he responds and says it has to be paid, I will have to do so and then reclaim it. It smacks of something akin to loan sharking, I believe. The debt has to be paid, and that is why I am insured.

Further to the suggestion that I should have continued paying my monthly credit card bills until such time as the insurer - who was imposed upon me by Capital One in the first place, of course - got round to sorting out his act, I am now receiving £13.74 per week from Jobseekers Allowance (my wife works 10 hours per week for very little money and I lose out on my benefit because of it) and I couldn't pay it even if I wanted to.

Thanks again, everybody.

withnell

barrylane wrote: »

I have also asked if he thinks a penalty of nearly 25% for failure to pay on top of the original charge is fair.

It's 25% per annum, not a 25% charge. I'd guess that the interest rate on your card is round about this figure too. It's higher than the BoE base rate because of the inherently higher risk a credit card brings.

Moggles_2

barrylane wrote: »

Further to the suggestion that I should have continued paying my monthly credit card bills until such time as the insurer - who was imposed upon me by Capital One in the first place, of course - got round to sorting out his act ...

Not your monthly credit card bills, the minimum monthly payment required, which is normally around 3% of your balance. This would have saved you and your wife much stress and left your credit rating intact.

I think you're still blaming the wrong outfit, personally. It's your insurer that caused this unforegiveable delay and it's Axa I'd be complaining to, first and foremost.

Also, a card company cannot impose an insurer on its customers. You are free to buy insurance from wherever you like.

As above, I'm sorry you've only just found us and hope this site and those of us here on the forum can help you more in the future.

Very best
M

FoxtonsRIP

I'm not suprised Capital One are at fault, they really are the pits.

proeleche

Robert_Sterling wrote: »

Better late than never. Better never late.

Ignorance. People make mistakes. Keep your rude comments to yourself.

'Serious Money Saving Fan' - ha!