Monday, February 22, 2010

Capital One Gotcha

I received my statement the other day and found that my interest rate had doubled. WTF?! I called them to ask why and was informed that it had nothing to do with my credit standing, credit history or payments but that they had sent me a letter last February warning me of an increase and giving me the option to opt out and close the account while I paid it off at the old interest rate. But, this option was not available to me now, so sorry. Some poor phone guy in India got an earful and was called a criminal and usurer. Sorry, guy, but that what you get for associating with a criminal enterprise.

You see, the whole situation was set up to avoid the new credit laws which take effect today. They would have had to freeze existing accounts at the old interest rate and only new purchases could be charged the higher rate. So they snuck a form letter into their queue of junk mail and didn't send any other warning flags about the impending account change. To charge 19% when the Fed is at fractional interest rates should be criminal.

I will pay off Capital One ASAP and they can take a flying leap at the moon. And I guess I'm not the only one getting stuck.

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