Capital One Complaint - Unjustified Rate Increase
OHIO -- Capital One increased my APR for purchases from 7.9% to 15.9% in August 2007 due to "increasing interest rates" - this after the Fed just dropped the rate for the second time in the past couple of months! The APR for cash advances was increased to 22.99%!! After seeing that they have been doing this to everyone, I was going to call to cancel my account based solely on ethics. This was disappointing, because we use the card when traveling abroad since Capital One does not (yet) charge foreign transaction fees.
Before I was able to call, I received a letter stating that I qualified for a free upgrade. So then I called the number on the card and asked to see how low they could lower my APR - and they dropped both back down to 7.9% where they were in the first place!
This is corporate stupidity at its greatest. Think of all the money they're spending on mailings, phone operators and internal processing.
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