New Application for Capital One Credit Card Shows Huge Charge for Credit

Dave_Roberts_3

Hello
I applied for a Capital One Platinum Card and was turned down. I sent in further information and documentation, and then received a telephone call during which I answered their various questions, as a result of which they told me they would reverse their decision and WOULD issue me a card.
They have now sent me an Agreement to sign and return before the card is sent to me. It is a straightforward Application Agreement for a credit card - I have not asked to transfer a balance, nor have I asked for cash or anything else. I am shocked to see - in very tiny print - a paragraph heading "Total Charge for Credit - £494.52"
What credit ? I rang the help line and was told in a pre-recorded message that this entry was an EXAMPLE only and did not apply to me !! I then spoke to an operator who said that they were required by law to show how much I would pay if blah blah based on an assumption blah blah and assuming blah blah. When I stopped her and said the agreement did not say anything about it being an "Example" but quite clearly read that for me there was a charge for credit of £494.52 she replied, "Well just write on the bottom of the agreement that the figure does not apply to me and is only an example for a fictitional customer and a fictitional transaction." Huh ??? She also told me that the recorded message was there because thousands of customers were questioning the "Credit Charge" statement, and it saved Capital One having to explain the same thing over and over.
When I asked her why they didn't simply change the Agreement form with a heading "Example Only" to show how charges MIGHT apply etc. she said that she had TOLD me what the Agreement means, so there was no reason not to sign it.
Have others found this "Total Charge for Credit" on their Agreement form ??
Am I right to decline signing this Agreement which I believe shows that I am agreeing to a charge of £494.52 to be applied ??

sicker

Don't sweat, that total charge for credit is just a 'what if' example. Most credit cards are 'quoting' examples of how much interest you woukd pay if you allowed yourself to get into so much debt.

John

Astaroth

It is one of these things (like APR) which is set by legislation to protect customers where as in reality it confuses a lot of people.

As sicker says, these are normally simply an "example" of the total annual cost the card would have in a pre-perscribed setup (eg making min payments etc)