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Capital Bank - Motorcycle loan

Complaint
Review by mrgenessee on 2012-12-16
Rating: StarEmpty StarEmpty StarEmpty StarEmpty Star
I had my motorcycle loan with Yamaha and then Capital Bank took it over. I've had my loan since 2007 and never missed a payment. Now, they keep dropping my available credit every time I make my payment. I even tried to get a new loan for a brand new bike and they refused it. So, it doesn't matter to them if you don't miss any payments. They are very bad to do business with. They didn't even notify me that they were doing this until I saw it online. Try to stay away from this bank, they are no good.
Comments:2 Replies - Latest reply on 2012-12-16
Posted by At Your Service on 2012-12-16:
The amount you are normally approved for is based upon a debt to equity ratio. This percentage allows them to know the additional debt, if any, one might normally be able to handle.

The reason your available credit is on a sliding scale, moving down as you pay off the debt, is as to not report you negatively to the credit bureaus. If they report that you are approved for a smaller amount (X) and that you're paying off a larger amount (X + |Y|) it damages your credit rating quite a bit.

Hope you understand the reasoning.
Posted by tnchuck100 on 2012-12-16:
This is a sorry way to treat a paying on time customer. They are hurting his credit through no fault of his. His debt to available credit ratio is not improving as he pays this loan down. Normally this ratio improves as the loan is paid down. Unless you are dealing with an unscrupulous bank as Capital One. The only "reasoning" that exists is Capital One can do this to a customer so they will.

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