Capital One - Raising APR, anyone else get a letter?

[dave29]

before you criticize me for having a capital one card --> I have a zero balance and opened it to improve credit several years ago. I am posting this to gather information about their rate increase.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/creditcards/4376011/Capital-One-raises-credit-card-rates.html (can't find a US link, go figure) --> also my rate was 12% the article says "raising up to 7%" -- mine is doubling.

I received a letter from Capital One a week or so ago about them raising the APR to 24% in April or May. They gave me the option to "opt-out" of this change by closing my card.

I also received a letter from them last month offering me a second card because I have been "such a good customer"

Anyone else get either of these letters?

Anyone know if they are receiving TARP funds?

Anyone know anything else about this?

Thanks :)

[Aviation Pro]

1. "Yeah, what's in your fucking wallet, sucker...."

Should be the next commercial.

[napi21]

2. No I didn't receive either letter. I have 2 Cap 1 cards, and have had them for many

years. I never use them, but keep them for the credit line in case disaster strikes.

[Democrats_win]

3. Wikipedia has good info. Cap one sent out lots of letters.

http://en.wikipedia.org/wiki/Capital_one

"In February of 2009, Capital One began sending notices to cardholders regarding "extraordinary changes in the economic environment." These notices informed consumers of changes to their accounts, including significant increases in interest rates effective April 17, 2009. Cardholders are given the option of continuing use of the card at the higher interest rates, up to approximately 30%, or to close the account and pay the balance down at the existing rate. Although it seems to be across the board, many consumers who are using the Payment Protection Plan are experiencing the largest increases in interest rates, presumably to encourage these high-risk consumers to close their accounts."
---
Credit cards are the new death cards. Outlawing them should be job one for liberals and progressives.

[dave29]

5. thanks for link.

agreed on cards. Happiest day of my life was paying off all credit debt. Still, with all the people needing cards currently for emergencies, we need to make it known what this companies continue to get away with.

[dave29]

7. also from wikipedia:

On November 14, 2008, Capital One Financial Corporation was the recipient of $3,555,199,000.00 of the Emergency Economic Stabilization Act Federal bail-out in the form of a preferred stock purchase. <1>

Capital One Bank (USA), N.A. and Capital One, N.A. are nationally chartered institutions, regulated by the Office of the Comptroller of the Currency, Department of the Treasury.

[Critters2]

20. Wait! Does this mean they got TARP money? nt

[OutNow]

4. Call Them and Negotiate

My wife received a similar letter about a major rate increase. She was not happy and called the company to close her account. Instead, they offered her a REDUCTION in the interest rate if she would keep her account open.

Maybe the decision to raise the rate is done across the board and they wait to see how many just accept it or don't bother to even read the letter.

BTW - her credit score is about 800 and she was never late with a payment, etc.

[RebelOne]

6. Clark Howard, the conumer guru, said to opt-out and close the account.

In case you don't know who he is,

http://clarkhoward.com/

[Davis_X_Machina]

15. Mailed the cap-and-close letter today.

CITI did the same thing back in December. They wrote me a letter asking what they could do to change my mind, and keep a valued customer, and I told them: 'give me the old rate'.

We'll see.

[BOSSHOG]

8. 5.75% at USAA

A very fine company to do business with. No muss, no fuss, no silly letters, just professional service.

[Aviation Pro]

17. Yup....

...been a member since 1983.

[SoCalDem]

9. Even with a zero balance, you are a "risk" to them..

Banks are shedding credit card holders, because in this economy, more and more people are losing jobs, and then racking up CC debt, as they "live on their cards", until they either find a job, declare bankruptcy, or the card shuts them down..

Many companies are "limiting their exposure" , by getting people to cancel voluntarily, or by reducing their "available credit"..

I keep expecting it to happen any day now, on the ONE card we have.. Every month I look, and so far it still has a credit limit of $18,200.00..( we usually charge someone once a month..to keep it active..but we too pay it off every month)..

[graywarrior]

10. Mine has been going up and down.

?

[dave29]

11. actually mine too

it was up for a bit, I got them to lower it to 10%, then noticed the last few months it had increased back to the 12% range. They are all over the map.

[graywarrior]

13. They're counting on lots of people not paying attention

[Davis_X_Machina]

16. Tied to LIBOR..

or the prime, which have been moving around a lot.

[boomerbust]

12. I got the notice

3 years ago from these crooks. They get nothing now.

[soothsayer]

14. i meant to close mine but forgot to. oh well.

[shanti]

18. just got (two) today

cause i have two cards :( i paid them both off in december - always on time, always paid way more than the minimum. like you, i knew their reputation, but only got them to build credit. my interest rate went from 11%-18%! they even charge me $5 a month to keep the damn things! i would like to cut them up, but feel like i need to have something in case of an emergency as my savings account isn't that much.

what did you decide to do?

[PBS Poll-435]

19. Chase lowered the rate on my card from 22.49% to 10.29%

And they cited the "unstable economic environment" as the cause.

Doesn't affect me one way or the other because I never carry a balance on that card.