I received a "Change in Terms of Service" notice from Capital One today, stating the company would be cranking up my APR on the credit card I keep for my side business.
I called to ask what the issue was, if I had made late payments or something like that. In fact, I asked "Jeff," the ... ahem...Customer Service Representative (hmmm funny, don't feel like I received much customer service, but I'm getting ahead of myself) "What did I do wrong?" Literally. In those words.
His answer? "Nothing." I asked if another rate was available and he said no. I told him I was going to opt out, which allows me to pay down the balance at the current rate. I then told him that I wanted it noted for the record that I was, nicely stated "rather put out" with what the company had done.
His reply? "I'll connect you with our automated system."
That just pissed me off. Now, I get the fact that Jeff didn't make the policy decision, but if your company is going to hack off a large portion of its customer base, at least attempt to placate the customer.
I snapped, and I admit, it was a childish thing to do. In a rather sing-song voice, I said, "Oh? You don't care? Oh! Thank you so much!" and hung up. I then called the automated system myself and opted out.
Why did this tick me off so much? Because it's one thing to have repercussions to your finances if you skip payments or go over the limit or whatever. Capital One's own representative told me I did nothing like that. Part of the reason listed for jacking my rate (from I think 16.91% to 22.9% or something like that) is the "challenging economic environment" [click the picture below to enlarge it for reading].

I think I've been a good customer to Capital One. The account has been open for over six years. Yet, as Capital One is in business to make money and not take care of the likes of me (and hey, why would they? I'm small potatoes...I get that part...I really do), it is become the position of the company to just jack up the rates on a large number of its customers to try and make up the difference on the bottom line caused by the recent economic down turn.
After this, I did a little research and apparently I'm pretty late to this party. There are a number of people that have been jacked by Capital One (see this link, or this link, or this one for examples) and some articles of advice, like this one.
I guess in the final analysis, Capital One did me a favor, as credit cards can be used for evil as well as for good. I can just imagine what the company would have done to me if I hadn't been paying as agreed on the account.
I cashed out as many rewards points as I could (although since the company seems to only offer rewards at levels of 5,000 points, I will end up losing about 3,200 points, since there is no level of redemption for less than 5,000 points), but I'm still going to get screwed on that as well. I guess Capital One decided that even taking bailout money wasn't enough to allow easy access to its funds.
I probably shouldn't have closed the account, but as the taunt letter from CapOne states, once you have closed it, that puppy is closed! I suppose the smarter thing to do would have been to pay off the balance and not use the card.
Of course, my account was charged an annual fee anyway. Some reward, right? As I saw on another website, Capital One should change the slogan from "What's in your wallet?" to "What's left in your wallet?"
Well, I'm not sure what's going to be left in my wallet, but I know that none of my paltry little pittance will be going to assist Capital One before too long. Zero balance, here I come!
Labels:
bad customer service,
capital one,
credit card,
opt out,
rate increase