Capital One Credit Card - No interest free period

mickp_2

Beware the Capital One Platinum card offering 1% cashback

There is a big catch - no interest free period!

This card doesn't even appear in Martin's table - probably because it seems to be by invitation only. I guess this card would be bottom of the list.

I applied for the 1% cashback (plus 6 months 0%).

After 6 months, I paid in full by the due date but was still charged interest. When I enquired, I was told this is a special card with no grace period. Interest is always charged from the puchase date even if you pay in full. The interest of approx £22 exceeds the cashback of approx £14.



The invitation letter and other paper work fail to mention this. In my view it breaches the banking code - I've written to capital one to see what they say.

Beez_2

I posted this earlier under the heading
'Capital One Card - No grace period on purchases.'

I'll close that thread and refer readers to here.


I took a Capital One Card in January for 2 reasons. One for the interest free period on balance transfers and purchases and the other for the 1 % cashback. The interest free period expired in September and I duly switched the balance to another interest free card. I decided to keep the card though for my everyday purchases and I pay my balance in full every month.
My latest statement however shows a fee for 'Purchase Interest'. When I called to query I was told that there is no grace period for purchases on this card even if the balance is paid off in full. The interest charged is 1.123% per month (ie greater than any cashback earned). There is no mention of this on the statement - my last statement stated that no interest would be charged.
This information was confirmed by a second customer service agent from Capital One but I still find it difficult to believe. I have suspended all spend on the card and will hold the account open till January when the cashback is due. Then I'll dump it.
I have written to Lee Powell, the Director of Operations at Capital One to confirm the information given is correct and will update when I get a response.
Anybody else got a Capital One Platinum Mastercard with 1% cashback and having the same problem?

Robert_Sterling_3

It is not closed yet or is it?

Milarky

Credit cards without 'grace' [interest free] periods have to be watched out for - although I accept Beez in particular took note of what he thought this card purported to be. As these cards are quite rare, however, no issuer should have a reservation about displaying this fact prominently - and if they have concealed it at Capital One I hope they offer redress and change the way they market this item in future. In fact I hope they withdraw it, since deriving any benefit by normal use is impossible.

I've seen a Bank of Scotland offer which is not dissimilar - £40 vouchers 0% for 9 months on Balance Transfers AND purchases and a stand rate of 12.9%... oh, and no interest free period! Such cards should be used no longer than the promotion and then cancelled

In the meantime, it is possible to get 1% cashback and pay little or no interest - but only by crediting the card as you use it - this reduces the effective charge rate from 1.something percent per month to what you earn on your savings [as no longer earning interest for you] - thats about 4%pa instead.

Sooler

mickp wrote:

The invitation letter and other paper work fail to mention this. In my view it breaches the banking code - I've written to capital one to see what they say.

Anyone had a resolution to this rip off?
Where is the no grace feature in the terms and conditions?