Capital one rate hike - incensed!!!

jonesMUFCforever

dannykos wrote: »

well I got the same letter today - increase in rate from 1.53%PA up to 8.54%PA???
I'm not fussed - as I'll just opt out, and pay the balance down over the next year or two.

What irks me is that AFAIK when I signed up - the rate was quoted as 5.9% for life (both purchases and transfers). I don't understand how I ended up at 1.53%PA - or how they can now take my rate over 5.9% either?!

Whilst I can believe that they would offer a 5.9% LOB for balance transfers - you would need concrete evidence for the purchases bit - are you sure it was not time limited to say 12 months?
IMO it is never a good idea to combine balance transfers and purchases on the same card.

YorkshireBoy

dannykos wrote: »

well I got the same letter today - increase in rate from 1.53%PA up to 8.54%PA???

Something's not right here. 1.53% sounds like a monthly rate (equating to 19.9% APR). Not sure what 8.54% relates to. It's in the middle of nowhere...too high for a monthly rate, but too low for an annual rate (unless they've given you a really good rate?). Maybe if you read the letter again all will become clear?

I'm not fussed - as I'll just opt out, and pay the balance down over the next year or two.

If your credit rating is preventing you from applying elsewhere for a 0% deal, then Capital One's assessment of you (based on an ad-hoc search of your CRA data and the management of your account with them) would seem to be accurate and you are the increased risk they deem you to be?

What irks me is that AFAIK when I signed up - the rate was quoted as 5.9% for life (both purchases and transfers).

As far as you know? Where's your paperwork/T&Cs? The deal you have will be detailed in there.

dannykos

YorkshireBoy wrote: »

Something's not right here. 1.53% sounds like a monthly rate (equating to 19.9% APR). Not sure what 8.54% relates to. It's in the middle of nowhere...too high for a monthly rate, but too low for an annual rate (unless they've given you a really good rate?). Maybe if you read the letter again all will become clear?If your credit rating is preventing you from applying elsewhere for a 0% deal, then Capital One's assessment of you (based on an ad-hoc search of your CRA data and the management of your account with them) would seem to be accurate and you are the increased risk they deem you to be?As far as you know? Where's your paperwork/T&Cs? The deal you have will be detailed in there.

1. I currently am DEFINITELY paying 1.53% APR

2. The letter DEFINITELY says my new rate will be 8.54% APR
3. I have a spotless credit rating - and have no problem finding a 0% card if I wanted one - but I'd rather have stuck with the current status quo (obviously )
4. I've had this card for at least 5 years - and to be honest, I have no idea where the original T&C's are… I'm just 95% certain that it was 5.9% for life for BOTH purchases and transfers

CannyJock

dannykos wrote: »

1. I currently am DEFINITELY paying 1.53% APR
2. The letter DEFINITELY says my new rate will be 8.54% APR
3. I have a spotless credit rating - and have no problem finding a 0% card if I wanted one - but I'd rather have stuck with the current status quo (obviously )

You want to stick to a monthly APR of 1.53% instead of a 0% offer for a 3% fee?

You would save money after 2 months.

Are you mental? Switch and ditch.

gazelle8760

ILW wrote: »

Oh do stop moaning.
If you don't like it take your business elsewhere.
Whinge Whinge Whinge can get a bit tedious.

Why should people stop moaning? This is a forum to help people who need advice, not for making comments to suit your own ends, I too have had a similar letter, and a 10% interest rate rise is nothing to be not moaned at, in fact it's a joke, Capital One should look after their long standing customters, not penalize them, if you have nothing constructive to say, instead of telling people to take their business else where, then shut up yourself, as from what you write, it seems you could become a bit tedious as well. :j

ILW

gazelle8760 wrote: »

Why should people stop moaning? This is a forum to help people who need advice, not for making comments to suit your own ends, I too have had a similar letter, and a 10% interest rate rise is nothing to be not moaned at, in fact it's a joke, Capital One should look after their long standing customters, not penalize them, if you have nothing constructive to say, instead of telling people to take their business else where, then shut up yourself, as from what you write, it seems you could become a bit tedious as well. :j

I think the advice to take your business elsewhere is both constructive and concise. I doubt any better options will come to light.
Alternatively you could keep paying the interest and keep posting on forums about how unfair life is.

david39

I had the same letter eighteen months ago from them.

Spoke to them on the phone - similar unbelievable reason - told them I would be clearing the (small) balance at the end of the month and closing the account.

A few days before the money was due, they rang me to remind me to do it! - although I had already posted the cheque.

Ditched the card - just got a different one instead.

gazelle8760

ILW wrote: »

I think the advice to take your business elsewhere is both constructive and concise. I doubt any better options will come to light.
Alternatively you could keep paying the interest and keep posting on forums about how unfair life is.

I am fortunate enough to be able to clear my balance monthly, but others are not so lucky, so for them it means a lot more financial hardship, so yes they have every right to moan about it, so your argument is totally un-founded.:T

willstewart

I've got a monthly rate of 2.592% on everything i.e cash advance, BT, purchases with them. Used to be around 18% but has been increased twice in the last few months - reason why I'm increasing payments to them to get rid of them ASAP.
Even after paying a quarter of the balance of in the last two months, noticed my minimum payment is higher this month than last (only by 50p though, but still higher).

I want to know why the seem so desperate to get rid of people with outstanding balances who make them money whilst eagerly bringing on board people going onto 0% deals with 6-18 months?
It does seem as if they are thinking in the short term only i.e get what they can ASAP rather than keeping customers who are providing them with a steady stream of income.

dannykos

CannyJock wrote: »

You want to stick to a monthly APR of 1.53% instead of a 0% offer for a 3% fee?

You would save money after 2 months.

Are you mental? Switch and ditch.

Did you even read my post??

1.53% ANNUAL INTEREST RATE!?