If you have an account with Capital One (one of the biggest lenders), read on. You may be getting screwed big time financially because of their unethical practices.

After having sent my final payment to all my credit cards ($2,000 ) last month, I enthusiastically went to check my credit score through Equifax's Credit Expert service today. To my dismay, my score was 40 points lower than last month WTF??? My score has been gradually increasing as I've been paying off my cards these past six months. Why did it go down 40 points after paying them off completely?? Forty points is no joke; that could mean tens of thousand dollars more over the life of a mortgage. Oh, and possibly no S2k

After almost having a stroke, I noticed that my Capital One card was still showing last month's balance of $90. Fine, but the credit limit for that card is $500, so I'm only at 18% of my limit, which is lower than last month (as most of you know, the higher your balances, the lower your credit score), so why did my score go down? But then I noticed something odd; the credit limit for the Capital One account was not being reported to the credit bureau (unlike all my other cards). Only the highest limit was being reported (highest balance I've ever carried on the credit card), which was $151. Therefore, Equifax was reading the $151 as the credit limit instead of the actual $500. This puts me at 60% of my limit!

After having a very frustrating conversation with a service rep who could barely speak English (damn outsourcing) and kept insisting that a full-scale investigation be launched on the $90 charge (that's not the point, Sahid!), I called back and talked to a very helpful rep who informed me that Capital One does not report credit limits to protect their customers (not sure how), and that they are aware of the "inconvenience" that it causes and are going to change their policy soon. He then suggested what I had already thought of; max out my card by depositing one of their checks into my bank account and then paying off the card immediately with that same money, therefore raising my high limit - and therefore my perceived credit limit - to $500. Superb!

But then, not even 15 minutes later, I stop at Barnes and Noble and, of the hundreds of thousands of books they have in stock, I pick up a new 350 page book about credit reports and scores, open it up and almost instantly I'm on a page about Capital One. If that book was a lottery ticket I'd be a millionaire right now. According to the author, Capital One deliberately fails to report credit limits in order to lower their customers credit scores and therefore discourage competitors from contacting Capital One's customers with better credit card offers! Mother ers! So this company knowingly tried to ruin my credit, cost me 10,000's of dollars in higher interest rates, hurt my chances of fulfilling my dream of starting my own business, etc. etc. etc, just so they could make a couple extra bucks??? I think that's sufficient grounds for legal action against them.

Sorry for the long rant. Hopefully in trying to keep this one client, it cost them a couple hundred potential ones!

 

What's in YOUR wallet?

 

Information is greatly appreciated. Count me out.

 

Talk about credit card scams, I had a visa account with Providian. One day I went to go pay online and it stated that my account didn't exist. WTF? So I called and was explained by some Indian that my account was sold off to Emerge Mastercard. Emerge sent me a letter notifying me a few weeks letter. My new interest rate... 29.99% WTF!?!?! I called and complained, oh well too bad was their response. I sent a check for the full balance and closed the account. A few days ago I was on some website and apparently theres a class action lawsuit going on now against Providian/Emerge.

 

On a serious note, while what Capital One is doing is unethical. I really don't think it would affect most people's credit all that much.

Having said that, I'll add that I do not have a Capital One credit card, and nor will I be opening an account with them. Just on principle.

 

a few people in the mid-atlantic forum work for Cap1.

 

Wow Javi, that sucks!

 

Glad I don't have one. But I think all CC to some degree do allot of things they don't disclose freely. Maybe not illegal things but almost testing the intelligence of their customers. For example I have had a Discover Card for a very long time. I always pay my balances within 2-3 months. I'm one of those that once I put a certain amount on a card I will take it out of my wallet and not put it back till the balance is paid in full. Well I noticed that after a short time of paying large amounts or paying off completely my APR went up to 19.9%. I stop using the card. Well I was about to cancel it last week. They asked my why? I told them flat out you guys charge too much for me paying on time and in a short time. Two seconds later they lower it to 0% for transfers with 0% transfer fees and 0% on purchases for the next 6 months. I ask why just 6 months. She says that's their policy YOU have to call to check new promotions to customers. These are based on your activities and if you don't do anything then the automatic go up to the highest possible rate... My point is we have to look out for #1 and not expect anything from CC companies.

 

Thanks for telling your capital one experience. Wow Capital One does hurt the pocket.

 

that sounds pretty unethical
I hope someone at Cap One speak up and defend the company.
otherwise I'll spread the word around my work place about Cap one.