CapitolOne Credit APR Increase

[Tarrant64]

:disgust:


Anyone else get in the mail recently a notice of an APR increase up to 20%-30% higher? I'm talking 6-7% APR all the way up to 29%-34%. I'm hearing stuff about it now.

There's an option to opt-out obviously by calling a number. But I bet you well over 50% of the people never completely read the fine print in their statements. I mean hell, if I got a statement in the mail with 10 paragraphs of stuff I typically don't care about, I just look for the numbers of how much I owe on interest, how much I am in debt, and what i need to pay. Lately I look for the APR because it's getting out of contol.

Seriously, what the hell are they thinking?

 

[DeadByDawn]

Originally posted by: Tarrant64
:disgust:


Anyone else get in the mail recently a notice of an APR increase up to 20%-30% higher? I'm talking 6-7% APR all the way up to 29%-34%. I'm hearing stuff about it now.

There's an option to opt-out obviously by calling a number. But I bet you well over 50% of the people never completely read the fine print in their statements. I mean hell, if I got a statement in the mail with 10 paragraphs of stuff I typically don't care about, I just look for the numbers of how much I owe on interest, how much I am in debt, and what i need to pay. Lately I look for the APR because it's getting out of contol.

Seriously, what the hell are they thinking?

They are thinking that you are more of a credit risk now, and that if they can't make money off of you they don't want you as a customer.

Just business.

 

[SlowSpyder]

I just got one, my APR when up to 21% or something like that. I only have a $150 balance on the card, so I'm just going to pay it off next month then decide whether to just keep it with a zero or near zero balance or just cancel the card. I have two other cards, neither one (Chase and Citi) have yet to change my APR, so I really don't need the Capital One card. I'll probably just cancel it, but haven't decided for sure yet.

 

[Tarrant64]

Originally posted by: DeadByDawn

Originally posted by: Tarrant64
:disgust:


Anyone else get in the mail recently a notice of an APR increase up to 20%-30% higher? I'm talking 6-7% APR all the way up to 29%-34%. I'm hearing stuff about it now.

There's an option to opt-out obviously by calling a number. But I bet you well over 50% of the people never completely read the fine print in their statements. I mean hell, if I got a statement in the mail with 10 paragraphs of stuff I typically don't care about, I just look for the numbers of how much I owe on interest, how much I am in debt, and what i need to pay. Lately I look for the APR because it's getting out of contol.

Seriously, what the hell are they thinking?

They are thinking that you are more of a credit risk now, and that if they can't make money off of you they don't want you as a customer.

Just business.

I wonder how they define credit risk. I personally don't have credit with them but a few people I know are getting notices about that. And I can tell you I don't think they would be a credit risk at all.

If you pay your bills and are never late you should be considered a valued customer. Especially if you don't keep high balances often for an extended period of time.

They might as well give notices that they are closing your account and you need to go elsewhere. A credit increase that high is just blatantly wrong, especially at such a short notice. WTF happened to "hey, in 6-12 months if you don't change your spending habits we will consider you a credit risk". They don't even explain in detail why you'd fall into that category as a risk.

 

[FP]

If you don't agree to the new Ts and Cs they cancel your card.

 

[spacejamz]

i think there are one or two threads here about CITI raising the APR's on their cards...

 

[TastesLikeChicken]

I have a Cap One card and got this notice. I am by no means a risky customer yet they are still jacking my rates sky high. My impression is that they are struggling financially and are squeezing their customers to right the ship. They can blow me. I'm cancelling the card.

 

[DeadByDawn]

Originally posted by: Tarrant64

Originally posted by: DeadByDawn

Originally posted by: Tarrant64
:disgust:


Anyone else get in the mail recently a notice of an APR increase up to 20%-30% higher? I'm talking 6-7% APR all the way up to 29%-34%. I'm hearing stuff about it now.

There's an option to opt-out obviously by calling a number. But I bet you well over 50% of the people never completely read the fine print in their statements. I mean hell, if I got a statement in the mail with 10 paragraphs of stuff I typically don't care about, I just look for the numbers of how much I owe on interest, how much I am in debt, and what i need to pay. Lately I look for the APR because it's getting out of contol.

Seriously, what the hell are they thinking?

They are thinking that you are more of a credit risk now, and that if they can't make money off of you they don't want you as a customer.

Just business.

I wonder how they define credit risk. I personally don't have credit with them but a few people I know are getting notices about that. And I can tell you I don't think they would be a credit risk at all.

If you pay your bills and are never late you should be considered a valued customer. Especially if you don't keep high balances often for an extended period of time.

They might as well give notices that they are closing your account and you need to go elsewhere. A credit increase that high is just blatantly wrong, especially at such a short notice. WTF happened to "hey, in 6-12 months if you don't change your spending habits we will consider you a credit risk". They don't even explain in detail why you'd fall into that category as a risk.

I'm sure they don't analyze each individual account. People are losing their jobs left and right, defaulting on debt at record levels. I wouldn't loan the average US consumer any money at 6% right now either, especially unsecured.

 

[bl4ckfl4g]

My wife got this mail but barely read it.....threw it away then mentioned it to me. I was like ummm that is important info.

So....this can't apply to past purchases right? I didn't get to see the letter.

 

[Tarrant64]

Originally posted by: spacejamz
i think there are one or two threads here about CITI raising the APR's on their cards...

I am a member of Citi and that did happen to me. it wasn't as bad though, they jacked mine up from 3.99 to 13.99. I called and they wouldn't drop it. I never even got an opt-out option. Threatened to close my account and no go. I waited a month and called back and a friendly guy looked at my account, made a judgement that I really have been a loyal customer and didn't really understand how I fell into that category of "rack up an APR for someone who you're already making money off of." He couldn't get it all the way back down to 3.99 but he made a deal of 10.99 for 12 months or 7.99% for 9 and suggested I call back for a guaranteed lower APR.

Took the later.

 

[Tarrant64]

Originally posted by: bl4ckfl4g
My wife got this mail but barely read it.....threw it away then mentioned it to me. I was like ummm that is important info.

So....this can't apply to past purchases right? I didn't get to see the letter.

I think it's for past purchases? Whatever balance you currently hold I think becomes accountable (does that make sense)?

What I'm doing next week is taking up another crazy offer Citi just handed to me for balance transfers to their credit cards locked in at 3.99 "until paid in full". So I'm moving money to one account and moving it back.

I've been trying to see if anyone who has capitol one cards has balance transfer offers similar. Because that's an opportunity to at least get off of the high APR for a little while.

 

[Vette73]

Citibank did this to me years ago. I mailed them a Opt-Out letter yet they still let me keep the card and even extended it.

Of course I dumped them later and have a Costco AA and chase card now.

 

[bl4ckfl4g]

Did anyone happen to see when the change takes efferct?

I guess I need to close the account or switch it to a new one befor ethe rate increase

 

[Tarrant64]

I think Citi was trying to trick me at some point. I had a relatively low limit at $3k. Within 2 years I've had to call and have them decrease it 3 times. Now it's at $13k. I give up. But I honestly think they might have tried to get me to use up a huge chunk of that credit. I can't imagine $13k at 10% or more. Hell even 6-8%.

I'm trying to find out how the opt-out phone call went with the people I know.

 

[Ramma2]

Got our notice yesterday from CapitalOne, going up to 29%. Forget that, am cancelling the account.

 

[Ronstang]

Hmm, I wonder if they think this will decrease the number of defaults on credit card debt?

 

[Tarrant64]

I wonder if they even thought it through.

 

[LegendKiller]

They don't give a crap about the people right now. They're focused on two facts.

1. Defaults are skyrocketing, eating into their excess spread.

2. Funding costs have skyrocketed, eating into their excess spread.

Everything else is secondary, including the fact that higher rates = more difficult to pay causing more defaults.

This is the disgusting thing about CC companies. You see, you are in more of a socialist country than you thought. You, yourself, even if you are perfect, have a great secure job, and pay your bills on time, support defaulters through higher interest rates.

It's laughable people claim they don't want to bail out credit losers. They do it all the time anyway!

 

[amdhunter]

Originally posted by: FP
If you don't agree to the new Ts and Cs they cancel your card.

Yup. Just pay your bills off and it won't matter.
(Hahaha, I can say that now. lol)

 

[TwiceOver]

My Crapitol One actually went down from ~17 to 12.

 

[SparkyJJO]

I don't care, I don't carry a balance nor do I carry a capital one card.

Maybe they will finally stop sending me crap in the mail trying to get me to sign up.

 

[Ronstang]

Originally posted by: LegendKiller
They don't give a crap about the people right now.

When did they? They are nothing but drug dealers. For a long time they have been giving away credit cards to anyone (high school students??) with super low or no interest for a long enough period to get people hooked and in debt up to their ears. Then if they can only make the minimum payments they are basically on the hook for 20+ years and some may never pay them off in their lifetimes.

I am not only blaming the CC companies because it takes an idiot drug abuser to complete the circle.

 

[Tarrant64]

Originally posted by: Ronstang

Originally posted by: LegendKiller
They don't give a crap about the people right now.

When did they? They are nothing but drug dealers. For a long time they have been giving away credit cards to anyone (high school students??) with super low or no interest for a long enough period to get people hooked and in debt up to their ears. Then if they can only make the minimum payments they are basically on the hook for 20+ years and some may never pay them off in their lifetimes.

I am not only blaming the CC companies because it takes an idiot drug abuser to complete the circle.

Yeah they did a special on that a couple years ago (probably every year though) and talked about how it didn't make sense to set a minimum payment for credit cards when the average minimum payment would just go on almost forever.

 

[Tarrant64]

Anyone have issues with Wells Fargo? It's been solid for me as far as I can tell anyways. It'll be paid off in 2 weeks though ( after Citi raped me I started the snowball method and paying down my debt asap).

 

[Ramma2]

Originally posted by: Tarrant64
Anyone have issues with Wells Fargo? It's been solid for me as far as I can tell anyways. It'll be paid off in 2 weeks though ( after Citi raped me I started the snowball method and paying down my debt asap).

I hope not, we've had a Wells Fargo Credit Card sitting dormant for a while, its the card we're moving too from Capital One.