Capital One Although account is closed still charging interest Salt Lake City, Utah
RESIST CAPITAL ONE CREDIT CARD SCAM!!!! I have been making regular payments to Capital One for several years on a $2000 credit line. However, with the 29% interest and late fees (and compounded interest!), I am still over the $2000 limit. After losing my job in 2011, I requested that the account be closed so that I can pay down the balance with my unemployment insurance.
They replied that they will not close the account until the balance is zero and that the (compounded) interest would continue to accrue. Thus, they are effectively saying that I will be indebted to them for years because the interest on the principle, interest and late fees will continue until I can afford to pay them off in lump sums.
I have paid them well over $4000 so far for a $2000 credit line! By the time I can afford to pay them off I will have paid well over $10,000 for the privilege of being in debt.
3 Updates & Rebuttals
Robert
Irvine,California,
U.S.A.
Again...
#4Consumer Comment
Wed, October 10, 2012
What you "think" they should do, is not how credit cards work. Whether it was for a month or 20 years, you are not entitled to any "Gold Stars" for making your payments....because that is what you are supposed to do when you agreed to the terms of the credit card and borrowed the money.
If you read the terms of ANY credit card, they will all do exactly what Capital One is doing. That is requiring that you make your payments at the terms you agreed to, which yes includes being charged Interest and any possible fees such as late fees.
Now, I will say that you may have one option. IF you qualify you may be able to get into a Debt Management Program(not Debt Settlement). Here you put all of your unsecured debts(credit cards) into this program with a DMP Company, make one payment to them every month and they disperse that money to your creditors. On the creditors part they will often lower or waive the Interest Rates and late fees. You ask what is the catch..well you must put all of your unsecured debts into this program, the DMP company will run your credit report to verify this. These cards will be closed to new charges, and your credit report will be marked that you are on a DMP so you will not be able to open any new credit during this period. But if you are truly trying to pay down your debt this should not be an issue for you. The reason that you can often do it through a DMP rather than on your own, is because unlike just calling them up and asking, being with a DMP means that you know you have issues and are serious about paying it off.
Most of these companies are Non-Profit, but some are for profit so just be aware of that. Also know that they make their money by charging you a small monthly fee, but this fee is often much less than the interest you are saving.
Credit Card Scams
Plainfield,Illinois,
United States of America
I've been making payments for years
#4Author of original report
Tue, October 09, 2012
FYI - I've been making payments for years. I paid the balance down to under $1500. When I lost my job last year the account grew out of control with late fees and interest. By the time I find a job and resume making lump sum payments, I'll end up owing over $3000 - not from my charging, but simply from them "ripping-off" my family and I (with more fees and interest). It is scams like this that is weighing heavily on the national debt and further ruining the economy. The money that I'm spending on extended fees & interest, I could be using to pay down the balance and eventually supporting the local economy.
Robert
Irvine,California,
U.S.A.
Not how it works..
#4Consumer Comment
Mon, October 08, 2012
Sorry but who ever told you that credit cards stop charging you interest when your account is closed was wrong. It does not work that way.
It doesn't matter what bank or card you are talking about. If you have a balance your card you can cancel the card and not allow any new charges, but it is not officially "closed" until that balance is zero. This means that until you get the balance is zero, you are still subject to all the terms and conditions you were when the account was open. This includes, but is not limited to, the minimum payment requirements, interest rate, and any fees(such as annual, late, or over the limit).
By the way you are not making payments on a $2,000 credit line, you are making payments on a credit card balance from the money you have borrowed from them, and the snow-ball effect of failing to make your payments on-time and as agreed.
Now, of course you can stop paying them. Then within about 3-6 months they will "charge off" the account. If you thought Capital One was bad..just wait until you have to deal with the collection agency.