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An APR Rant (sort of)

February 9th, 2009 at 09:47 pm

I got home today and went and got my mail. Interesting notification in there from Cap 1 Credit Card:

"Due to extraordinary changes in the
economic environment, we're reviewing
our existing credit card accounts"

Hmmm this doesn't sound good...

"Having considered these economic
conditions, your account's current
Purchase rate, and the length of
time you've had this rate (7.49%),
we will be increasing your
Purchase rate."

OOhhhkkaayyy....to?

"A variable rate equal to 15.9% as
of 1/28/2009."

Are you kidding me??? They doubled my interest rate??? Why? I have only been late with one payment since I got the card, and that was 1 day late. On top of that, I pay an annual "fee" for the "privilege" of having their card.

So being the rational and calm person I am (a hint of sarcasm here) I called them to politely ask "hey umm why?". My call was anwsered by a nice gentleman, in Argintina, who's english is worse then mine. After about 5 minutes of deciphering what he was trying to tell me, I asked to speak to a supervisor.

A nice lady who spoke much better english answered with this bright, cheery "Hello my name is B***, how may I help you?" So I proceeded to once again ask the question "Why?". She went into her scripted response which i let her go on for about all of 30 seconds when i rudely interrupted her.

Me: "So your company is punishing me for doing the right thing by paying on time and paying over the minimum payment?"

B***: "No sir, due to the extrodinary economic conditions, we....."

Me: "I read the mailing. Ok if you guys are going to be charging me double, how about cancelling the annual fee?"

B***: "This card has an annual fee associated with it, but this is what I can do."

Me: "Okay, what are you willing to do for me?"

B***: "We have been authorized to offer you a 5.9% APR unitil Jan 25th 2010, at which time your percentage rate will adjust to the 15.9% set forth in the mailing."

Me: "But you can't waive the fee right?"

B***: "No sir, we can not waive the fee"

Me: "Okay, give me the 5.9% until January, at which time I will have to decide if I am going to continue to use your card or shop around for another credit company."

B***: "Okay sir, we will set this up for you right now'

Me: "ummm thanks I guess"

Me: "By the way, I hope you don't take this personally (the job) I know you are not in control of what policies they want to change or how the changes will effect your customers, but to me it seems silly to punish a good customer just so the toppers can get their bonuses"

B***: "Sir I completely understand"

Me: "Okay, if that's all taken care of, I hope your day gets better from here. Thanks and bye."

B***: "You have a good day sir, and thank you for using capitol 1, bye."

Has anyone else been notified of the "changes" they are making at cap 1? Or how about other companies? Are they doing the same thing? I would hate to cancel this card, even with the fee, it's the only credit card I have. I have had it for better then 10 years. I don't want to hurt my credit rating but I may have to.

7 Responses to “An APR Rant (sort of)”

  1. toyguy1963 Says:

    I don't have Capital One but I did have 2 of my credit cards drop me cause I didn't use them. And I had m interest rate raised on the card I do use. Irritating but I pay it off completely every month so they still wont make any money from me.

  2. creditcardfree Says:

    I don't use credit cards, but I think others on these blogs/forums have been having similar experiences. I would definitely shop around for another card, one without an annual fee.

  3. Caoineag Says:

    Never had an annual fee but Capital One did that to me a while ago. Now they want me to call them to discuss lowering my rates or converting it into a rewards card. They didn't ask permission to change the rate the first time, why do they want to chat with me now? Its just a game that credit card companies play. Like Creditcardfree said, shop around and get yourself a better card, one without an annual fee.

  4. M E 2 Says:

    I had a Capital One card for years. About 2 or 3 years ago, I received a bill in the mail from them, which I found odd seeing as I hadn't used the card in 4 or 5 years. Lo and behold, they were going to do me the favor of charging me an annual fee in exchange for the honor of having their credit card. HELL NO! was my reaction to that. Annual fees are for people with bad/and or no credit to begin with. I have NEVER had to pay an annual fee before nor will I ever do so. Needless to say, Capital One was promptly given the boot!!!

  5. Carolina Bound Says:

    I've heard that the credit card companies can basically do anything they like until 2010 (?) when certain laws go into effect. So they're taking advantage of it now.

  6. ceejay74 Says:

    My Chase Visa account (that I've had zero balance on for ages since I paid it off) has an interest rate that keeps creeping higher...right now it's at about 24.99% or something outrageous like that. I don't care because I only use it for car rentals, and pay it off within days of returning the car, but it does seem kind of mean.

  7. Jerry Says:

    I get really frustrated in dealing with credit card companies - I wonder if they take into consideration how many problems it leads to when the customer service people speak terrible English, and how many extra calls and costs are accrued when they have no insurance that things are being taken care of promptly. I hope that you leave them as soon as you get the chance!
    Jerry

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