Capital One BIG interest rate hike

LilacPixie

I got the upping to 39.9% one. Not hugely bothered because I use it for fuel then clear on payday. 39.9% does seem alot considering I am not sub-prime.

PROLIANT

LilacPixie wrote: »

I got the upping to 39.9% one. Not hugely bothered because I use it for fuel then clear on payday. 39.9% does seem alot considering I am not sub-prime.

Not sub-prime? So you don't have a Classic Visa then?

bingy_burge

I was thinking that.


Its not like vanquis or aqua though as capital one have only just released cards for more than two types of customer in fairness. B4 it was very good credit or sub prime.

I must be near the top of the sub prime as my car loan was a reasonable rate and I have the barclaycard inital which is only scored slightly lower than than the gold.

noah271007

gfowler wrote: »

Got one to this morning.

I've asked them to raise a complaint as they state it's due to increased costs of borrowing.

On checking the LIBOR rate (the rate at which banks borrow money) currently stands at 7+1/4 % points above base, so currently 0.5725% (as of last Friday). Why do companies choose to LIE to their customers, why didn't they say that they wanted to increase their margins???

I've opted out, so will pay back using old rate. I'm sure many people coming home from work will receive this increase letter.

My input.

Gareth

The biggest factor of increased cost of borrowing to Capital One in this case is because there are people defaulting their credit cards, thus Capital One making big losses, so they decided to upper the APR i believe to most Capital One customers's accounts to soften the losses.

It will be interesting to see how many customers will react by closing accounts...

LilacPixie

PROLIANT wrote: »

Not sub-prime? So you don't have a Classic Visa then?

No proliant it's a capital one platinum mastercard. Had it since 2005 for a BT its a lovely sparkly silver colour which actiually is why I keep it.

izools

I like what they say in the small print about the Capital One Progress -

Month
Interest Rate
1
34.9% p.a. variable
5
29.9% p.a. variable
11
24.9% p.a. variable
17
19.9% p.a. variable

Only applies to balance transfers and purchases until your 22nd statement.

So it's like a see saw... interest go down... interest go up...

Capital One definitely aren't after the long term customer!

digitalphase

No letter from Capital One today for me....

henrik1971

Just got my statement - no rate hike letter thank goodness.

I have had the card (Cap One Mastercard Platinum) since 2002 and use it a fair bit, mainly for BTs as they do offer 0% now and again for 6 months, or 9 months.
Anyway, I had a 0% deal late last year which was due to end on the Aug statement date, but it continued for an extra couple of months for some reason... However, this months statement, I've been charged just over 11 quid interest on a balance of £3620, which seemed strange - not 0%, and not standard rate, so looking a few lines further down on my statement it says:
Standard Purchase Rate 14.320%
Standard Cash Withdrawal Interest 17.650%
Standard Balance Transfer (BT) Interest 3.660%

I've never seen this standard BT rate before - this is the first time I've seen it. 3.66 % seems very low and random, any ideas?

izools

They must like you!

They can apply custom APRs as and when they please; perhaps the system put you on a Life of Balance rate instead of the standard APR by mistake?

Don't complain, just hope they don't notice too soon

henrik1971

Fantastic. I certainly won't be complaining. Cap One are a strange bunch. They've never upped my limit in lthe last seven years, but always offer me deals.
I had terrible probs with them last year paying for disney tickets in US dollars, and then, once over there, they declined my card numerous times (despite my prewarning them I was going) and then I had several blazing rows on the phone with different call centre operatives. Then they gave me some compo for my trouble.