Has Capital One increased the interest rate of your Credit Card? Please let us know

Be_Happy

Same experience as other posters.

Classic Card - Old rate 30.9%
New Rate 39.4%
Type of Customer - Have this card with balance limited to £1100 to use as additional card for internet use only, to keep main credit card safer.
Always pay off balance in full each month. (Main card with other bank is also paid off in full each month.)

Mortgage paid off, no other debts, have never missed payment or had credit problems.

Keep card because of link with Credit Reports and efficiency with which Capital One fraud dept intercepted 2 attempts to hijack card (small test purchases) and issued new cards.

david39

Looks like the trend is :

If you never pay any interest because you always pay the full balance each month, then you are given a high interest rate.

Not quite sure of the thinking behind that other than "We hardly make any money out of these accounts so, if the payment does reach us late, then we'll make as much as we can out of it." Thinking about it, I suppose most of the people who clear the account every month do not do it by DD, so there is a good chance that the less-well organised may accidentally pay late occasionally, thereby incurring the high interest charge and a penalty fee.

Or maybe it looks good on their balance sheet - x% of our accounts are above 35% interest.

Can't see the logic of the customer thinking - I'm a good customer because I always pay the balance off every month - that's their worst sort of customer - they never make any money out of you.

Perhaps the strategy for the card user who objects to the high interest rate even though he doesn't ever pay it, is to leave a small balance on the card once every three months or so - just a few pounds so that the interest payment is pennies rather than pounds - just so that the computer doesn't pick the account out as one from which the card company does not ever recoup any interest.

duggie1982

david39 wrote: »

Looks like the trend is :

If you never pay any interest because you always pay the full balance each month, then you are given a high interest rate.

Not quite sure of the thinking behind that other than "We hardly make any money out of these accounts so, if the payment does reach us late, then we'll make as much as we can out of it." Thinking about it, I suppose most of the people who clear the account every month do not do it by DD, so there is a good chance that the less-well organised may accidentally pay late occasionally, thereby incurring the high interest charge and a penalty fee.

Or maybe it looks good on their balance sheet - x% of our accounts are above 35% interest.

Can't see the logic of the customer thinking - I'm a good customer because I always pay the balance off every month - that's their worst sort of customer - they never make any money out of you.

Perhaps the strategy for the card user who objects to the high interest rate even though he doesn't ever pay it, is to leave a small balance on the card once every three months or so - just a few pounds so that the interest payment is pennies rather than pounds - just so that the computer doesn't pick the account out as one from which the card company does not ever recoup any interest.

That might be a good idea with the small interest.

Great_Hairdresser

They have uped mine too, just paid it off so am not effected, going to keep it open for my credit rating thou.

Lusam36

I had a letter from Cap 1 earlier in summer my rate has been hiked from 9.51% to 16.9% I am 1p in credit usually use my cards for balance transfer's. I phoned them saying I will not use my card untill I get a better rate! They have so far not made any offers!

izools

Lusam36 wrote: »

I had a letter from Cap 1 earlier in summer my rate has been hiked from 9.51% to 16.9% I am 1p in credit usually use my cards for balance transfer's. I phoned them saying I will not use my card untill I get a better rate! They have so far not made any offers!

Remember that leaving your account, even if by 1p, is a breach of the T&C of the account!

wasoccuring

My Capital One card from MBNA had hiked the APR from 17.9% to a wopping 34.9% last January (My credit rating is excellent). I asked them if I could cancel the card and repay it at the old rate but was rufused.
I reported them to the Financial Ombudsman and low and behold, they are now willing to offer me:

1. A total refund of the hiked interest over the period in question.

2. A promise not to increase my rate without offering me the option to repay at my original rate.

3. To lower my rate to close to the original rate with immediate effect.

4. Offer me £150 as a "good will gesture" (Yeh right!).

What a result! Dont be afraid to question them guys. It worked for me!

expatneedshelp

I thought i had cracked my probelm they offered to suspend my interest for 6 months after i spoke to the ombusrdman as my work is commisiom only and my partner has left plus my mother has been hospitalised for 4 months,
hardship they called it
then yesterday they said they arnt going ot help and are piling on the interest what can i do?
MY EX ISNT paying any main despite court order and ive not earnt any money for ages due to commision only and economy
im really pressured and dont know what to do.
they said dumb things like why have you used ferry crossing if you have no money
as i explained im an only child and my mum was in a coma in uk what could i do not visit her?
they said well youve bought a laptop and i replied well i still need to communicate and work im not on the dole im still trying to sell.
they just dont get self employed people or people with genuine probs
ive always payed my cards prevb and all bills
im realy upset

expatneedshelp

has anyone else managed to get the crisis rate or interest suspended.
im thinking of contacting the tv as this was false hope for us in an already difficult situation

ianp00

Capital One classic visa.

old: 27.9%
new: 34.9%

I messaged them asking why and they said because it costs more to lend to me now. I wrote back saying i disagreed and closed the account.