Capital One - Misleading?

thmaga

My father took out a Capital One Credit card recently over the phone to balance transfer from his 24.5% Halifax card.

Whilst on the phone he was quoted an interest rate of 0.8% so duly accepted the card and transferred the balance.

I've been taking a look at his cards in order to best tackle paying some of them off, and noticed the statement said 9.6% APR. "I was told almost 0%, 0.8" he told me.. I realised they have quoted over the phone a MONTHLY rate of interest rather than APR.

I told him to ring them up to confirm his interest rate, the lady on the phone told him "0.8%" to which I asked him to confirm if it was the APR, she then confirmed the APR was 9.6..

He spoke to a few people - including the manager who claimed this was standard practise - they always quote the monthly rate NOT APR.

Is this a legal way to sell a card? Its certainly not the standard practice when taking out a card on their website - where everything is quoted as APR.

happy_bunny_2

I would send them a written complaint including the points mention, dates of calls and who was spoken to if you have the info.

I think its reasonable to assume if someone says its 0.8% without a qualifying 'per month' then its annual, especially with the almost interest free comment.

Fob you off, refer to FOS and if you think you have been misled report them to the OFT.

YorkshireBoy

happy_bunny wrote: »

I would send them a written complaint including the points mention, dates of calls and who was spoken to if you have the info.

I think its reasonable to assume if someone says its 0.8% without a qualifying 'per month' then its annual, especially with the almost interest free comment.

Fob you off, refer to FOS and if you think you have been misled report them to the OFT.

OP's father took a deal that reduced his interest to around 40% of what it was and you think that's worthy of a complaint to the FOS?

What if the FOS ask to see the credit agreement?...you know, the one that was posted to him for a signature, and that clearly stated his APR was 9.6%. At that point he could have declined the card (although to do so would have been foolish).

I do agree he was given false information though...because 0.8% monthly does not equate to an APR of 9.6%...it equates to an 'annual non-compounded rate' of 9.6% (ie 12 x the monthly rate). The APR would be 10.03%.