Capital One Bank;s has structured their credit card business to extract excessive finance charges and late fees from their customers. (This is my opinion, which I am only saying to prevent them from suing me.) This strategy should be exposed, to protect customers. Here is my experience:
Capital One restricted me to an unbelievably low credit limit of $2,000 even though my credit history has always been flawless. I realize that this is their prerogative, but no other credit company I have ever dealt with discounts prior credit history. This strategy makes it easy for customers to exceed the credit limit.
Capital One;s website does not accept early payments. At Capital One, early payments can only be made over the phone, for which a $10 fee is assessed. When I made an early payment over the phone to avoid exceeding my credit limit, their computer system flagged my early payment as "suspicious activity even though my payment was immediately and successfully drafted from my bank. Even worse: my credit account was not credited with this payment until one week later after I called and complained to four people in Customer Service. Holding my money because I paid early is a strategy that should be against the law.
Capital One notified me that electronic funds transfer from my checking account would begin on December 4t. On my statement that was due on December 4 was printed the following information:
Capital One;s automatic payment service is in effect for your account. As requested, the New Balance shown on this statement will be debited directly from your designated bank account on your Payment Due Date. You do not need to send a separate payment
My bank account was NOT automatically debited on December 4, and finance charges of $11.88 as well as a late payment fee of $39 were imposed. I was $70 away from reaching my credit limit. I had to call a customer service representative to have the problem corrected.
After just the ONE late payment above (which was THEIR fault), Capital One;s website threatened me (in bold, red text) that the national credit bureaus would be notified of my delinquent activity if it continued. I can only imagine how much trouble it would be to have to correct my credit report if it had been wrongfully tarnished.
Capital One inquires against your credit report every month, looking for delinquent activity on any account. They have the option of raising your interest rates if they find late payments or other complaints on other accounts.
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