Do NOT do business with Capital One! If you do, you had better record every conversation you have with their representatives (you can do this, but you have to tell them you are recording). I had heard some reports of bad experiences with Capital One but I never paid much attention because I had not experienced any trouble (other than a ridiculous 19.8% APR for purchases which had started lower, but I wasn't surprised to see them raise it).
My trouble began as I started working my way our of credit card debt. Like most people I had been carrying balances on credit cards for a few years. All was going well and I had paid my Capital One Mastercard off and was getting ready to close the account (Nov. 2005). That is when I remembered recieving an offer for a balance transfer promotion at 2.99% APR, in the spring of 2005. I decided to call Capital One and see if I could still recieve that promotion.
They were very helpful and had good news! I could still utilize the 2.99% balance transfer option. I promptly transfered $2500 from another card to my Capital One account and closed the other credit card.
When I recieved my Dec. 2005 statement the entire $2500 balance was listed as a purchase with the corresponding 19.8% interest rate. I still wasn't too concerned - I quick phone call should fix it, I thought. Boy was I wrong after spending 30 minutes on the phone and being transferred and put on hold numerous times, I finally reached a "supervisor" - she did nothing more than put me on hold for a couple minutes, then come back on and tell me there was not record of a special rate offer and therefore there was nothing they could do about it!
The interest for one month on the $2500 balance was 40 bucks! I now have to totally revamp my plans for getting rid of my debt and won't be able to do it nearly as soon as I thought, unless I want to keep paying the huge interest on this account while I pay down the rest of my debt.
Not Good.
Stay away from Capital One - do a Google search "capital one complaints" it is eye opening. They are even being sued by the State of West Virginia.
I am going to send them a formal dispute via certified mail, but as it is my word against theirs, I doubt I will get any results.
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