I have read the hundreds of complaints about Capital One and their interest, double charges... Security deposit rip-offs, etc.
But this company is very successful because they have figured out how to rip you off on the front end and even on the back end.
I have worked in upper management for two of the three credit bureaus. I noticed (during Cap One's first 6 years of existence) that they were omitting their High Credit or Limits on the bureaus. This artificially lowered their customer's credit scores because it appeared they were far over 100% utilized on their credit lines... They did this to avoid being paid off by competitors using lists that the bureaus provided but harmed YOU.
Evan Hendricks (Editor and Publisher of Privacy Times) did an internal investigation of Capital One's dispute handling department. He found out that Trans Union went to Capital One because of all the errors on their bureau that were being disputed. The Trans Union representative said that Trans Union wanted to make their data base look like Capital One's... Not that they wanted to help cap one improve... BUT THAT THEY WANTED TO MATCH UP THE ERRORS.
Capital One has since figured out how to hit you twice in your score for accounts they charge off... The are the ONLY credit card company that is able to do this. They will hit your score for the charge off (from 30 to as many as 100 points depending upon how many charge offs you have) AND they hit your report for credit utilization (the percentage of balance to your limit). This may account for up to 45 points more.
The scores were created in a manner that eliminates the credit utilization after the account is charged off... So every other creditor BUT CAPITAL ONE may only reduce your score for the charge off.
How do they do this? Simple... Capital One keeps the account in an OPEN status even though it is charged off... Again blatantly against bureau rules.
A good class action attorney could become and instant multi-millionaire with this one... If any are interested my email is [email protected]
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