I have two credit cards with Capital One Bank. I recently became delinquent on both cards. But I do understand that this is my responsiblity and late charges and overlimit fees can be applied. This is really not the problem. The problem is that they are pyramiding these fees. I have a $500.00 credit limit on each card.
Example: My June 3 payment that came in the mail stated that I had to pay $148.58. I always pay online, since it's easier for me.
I Paid $165.00. I should now be below my $500 credit limit and should now not incur any more late or overlimit fees. But When I went online to pay I found that I now owe them $177.58. This is supposedly due for the June 3 payment. I went back over the late charges and overlimit fees for the previous 4 months and found that they not only added a late fee starting in March, - which put the account overlimit -but duplicated and carried the overlimit fee forward to the next month as well.
Then they posted the overlimit fee twice.
They posted an overlimit fee on April 3rd and then posted it again on May's payment which states an overlimit fee placed on April 4th as well. This fuzzy math exists on both accounts. Problem is that when you try to get them to take off the excess fee on one card they tell you that they can only do this for one card a month. "They are not authorized to do this for both cards in one month" as told to me by an account representative.
Funny, I am ONE cardholder and this seems to be their way of holding on to these fees.
Anyway, I contacted Capital One by mail prior to my making this last payment on one of the accounts. I cut up both cards, and sent them back to Capital one with a letter giving both card #s, stating that I was rescinding my charging privileges and to hard close these accounts. I stated that I would not be responsible for any further charges made to these accounts. (I stated this To protect myself from fraud —even though you have a Credit limit, they will allow charges over the limit to be placed.) I asked for a letter of confirmation on this.
I received a letter referencing one account not both. They did not acknowledge that I had sent back the cut up cards at all. The letter simply stated that once I had paid the balance in full they would close the account. The letter stated that I would still incur late and overlimit fees.
They are pyramiding fees. This means that: From the FTC website... Federal Trade Commission's Credit Practices Rule. I do not know if the FYC credit practices rule applies to Credit Card companies... But it should...
""A creditor can charge a late fee if you do not make your loan payment on time. However, it is illegal under the Rule for a creditor to charge you late fees or payments simply because you have not yet paid a late fee you owe. This practice is called "pyramiding late fees." Under the Rule, this means that if you do not include the late fee you owe with your next regular payment, it is illegal for a creditor to subtract the late fee from your payment and then charge you a second late fee because the current payment is insufficient. For example, your loan contract may state that your monthly payments are $100 and that you will be assessed a $10 late fee if you pay after the grace period. If you make your $100 loan payment after that time and you do not include the $10 late fee with your next $100 payment, a creditor cannot first deduct the missing $10 late fee from the $100 payment, claim you have now paid $90, and then charge you an additional late fee. But, if you skip one month's payment entirely, the creditor can charge late fees on all subsequent payments until you bring your account up to date.""
Jamie
New Port Richey, Florida
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