Capital One Credit Card Theft from Customers and Use of Deceptive Algorithms Salt Lake City Utah
I would like to write and advise of a recent experience and also ask for assistance to ensure that companies that perpetuate theft from Americans are held accountable for their actions.
I would like to file complaints against Capital One credit cards for theft and their use of convoluted terminology to defraud customers into paying exorbitant fees and service charges.
To make a long story short, I received a notice from Capital One advising that my Default interest rate was going to be raised. Specifically the letter states: variable rate equal to 29.4%, or (0.08055% daily periodic rate) is determined by adding 25.15% to the prime rate. to which, I have no idea what that means. The letter advised if I wish to decline the increase I can call and cancel my card.
I proceed to contact the Capital One customer service department and I'm eventually routed to a floor supervisor who attempted to explain the cantankerous billing method. After several minutes I asked the supervisor to provide to me (a) the dollar amount of transactions that have been added to the card within the last 12 months and (b) the dollar amount of payments that had been received by the company during the same period. We determined that in the last 12 months I have conducted $539.20 worth of transactions. During this same period I have paid Capital One $1110.32. On top of that, I still have an outstanding balance of $512.95.
How is it possible for me to be responsible for $1623.27 worth of transactions when only $539.20 was charged to the card? This is outright theft!
After learning of the theft that has been committed by this company I demanded that the floor supervisor transfer me to a manager as so we could resolve the situation, but the supervisor refused at least 10 different requests to be escalated.
I want complaints filed and consumers warned regarding the blatant theft that is committed by Capital One and their use of misleading tactics to confuse customers. This company should no longer be allowed to scam consumers with ridiculously low introductory rates only to have the fraudulent fees skyrocket after the introductory period has lapsed. $1623.27 worth of charges for only $539.20 worth of transactions is nothing short of theft. There is no other way to look at it. Despite what the company may say, a Terms of Service does not grant a company permission to commit theft of property all because they can claim' that monies are owed.
America is in the worth financial crisis that this country has seen since the Great Depression and Capital One should bear some responsibility for this catastrophe. Their tactics lure 18 year old children into the treacherous world of credit' and their despicable policies encourage these same children to wrack up massive debt that will take years if not decades to pay back. These companies charge outrageous fees and use ridiculous algorithms to distort the reality of the theft that they perpetuate on unsuspecting Americans.
And on top of all of that, when contacting the Capital One customer support line, callers are immediately directed to an agent located in India. This major American conglomerate, who shares at least some responsibility for the economic collapse of America and who robs Americans blindly of their hard earned wealth doesn't even have the decency to employ the very Americans who they strive so hard to take advantage.
This travesty has got to end!
I am asking for your assistance in ridding scandalous corporations of their despicable policies and tactics. This company has proved soulless when it comes to fiscal responsibility or moral integrity and every American citizen would be better off without such establishments
Thank you
Adam
Broomfield, Colorado
U.S.A.
Click here to read other Rip Off Reports on Capital ONE
CLICK HERE to read about Credit Card Scams... find out how to get your money back. Consumer makes harsh but accurate statements. *Rip-off Report Investigation follow-up provides valuable information.
7 Updates & Rebuttals
Chris
Cambridge,Ontario,
Canada
How is something so simple considered so difficult?
#8Consumer Comment
Mon, March 15, 2010
I am not sure why the concept of interest comes so difficult for so many people. I am not an employee of any credit card company; I am a borrower who must comply with the terms of borrowing just as anyone else does. I have never gone over my credit limit or missed a payment. I am 23. Sure, I sometimes carry balances from month to month, but I always pay well over the minimum payment amount.
A simple solution to avoiding going over the limit on finance charges is: DON'T SPEND TO YOUR LIMIT. Just because you have $1000 limit does not mean you must spend $1000. If your rate is 10% annually, a $1000 balance would accrue approximately $8.33 per month. If you can't leave room for that $10, you have some serious spending problems.
Joanne i
Skokie,Illinois,
U.S.A.
This is misleading and deceptive
#8Consumer Comment
Thu, March 11, 2010
An employee of Capital One must have written this "rebuttal" since it absolutely reeks.
First of all, there are LAWS governing how much interest can be charged. Secondly, Capital One has a very funky way of computing your interest.
Thirdly, it is not true that you have to be late twice--or even once!--for them to switch you to a punitive "default" rate. They do it all the time. It was done to me, and I was never late once. They are constantly dreaming up ways to trick people into going over their limit--not through spending, but via their whomped-on finance charges and fees---so that they can then tack on "over limit" fees.
I protested over and over to their "customer service" people--mostly in India---who assured me that all I had to do was check my "available credit" online and I would not incur a punitive fee. Well, guess what---the 'available credit" figure is false and deceptive. What is not stated on the 'available credit" bloc is the fact that the available credit does not account for finance charges--which can post to the account at ANY TIME! Since the finance charges are computed in a complex way on a daily balance, it is impossible to know how much they will be. You can only "guesstimate." Worse, they post at some point mid-cycle and then wham! You can be over your limit even without SPENDING anything. Then the fact that you are over your limit will engender another whopping $39.00 fee. This is added to your balance so that even after you make your payment, the new finance charges post and will put you over your limit AGAIN---once more, even if you DON'T even use the card. Thus the vicious cycle of predatory fees is begun.
The government and your congressmen know they are doing this. CapitalOne keeps the lines of communication with our politicians well oiled with plenty of campaign cash.
You have to fight back via the courts and regulatory agencies. This is a totally heartless, scumbag, unscrupulous company. keep fighting and DON'T GIVE UP!
Capital One has been sued over and over due to their unscrupulous business practices. They settle most suits.
Acct Manager
Port Hawkesbury,Nova Scotia,
Canada
Ignorance Is NOT Bliss!!
#8UPDATE Employee
Thu, February 25, 2010
Lets start off by stating very clearly - that if you had not been delinquent on your account at LEAST twice in 12 mths ( more than 3 days each time ) you would not be paying at your penalty rate, and this change would cause you no more concern than a passing car.
Dee
Florida,Florida,
U.S.A.
Ummmm
#8Consumer Suggestion
Wed, March 18, 2009
"How is it possible for me to be responsible for $1623.27 worth of transactions when only $539.20 was charged to the card? " It's called INTEREST that you pay every month that you carry a balance. I am surprised you don't get that.... your interest rate is in the terms that you agreed to. Don't want to pay interest? Don't carry a balance from one month to the next.
Dee
Florida,Florida,
U.S.A.
Ummmm
#8Consumer Suggestion
Wed, March 18, 2009
"How is it possible for me to be responsible for $1623.27 worth of transactions when only $539.20 was charged to the card? " It's called INTEREST that you pay every month that you carry a balance. I am surprised you don't get that.... your interest rate is in the terms that you agreed to. Don't want to pay interest? Don't carry a balance from one month to the next.
Dee
Florida,Florida,
U.S.A.
Ummmm
#8Consumer Suggestion
Wed, March 18, 2009
"How is it possible for me to be responsible for $1623.27 worth of transactions when only $539.20 was charged to the card? " It's called INTEREST that you pay every month that you carry a balance. I am surprised you don't get that.... your interest rate is in the terms that you agreed to. Don't want to pay interest? Don't carry a balance from one month to the next.
Dee
Florida,Florida,
U.S.A.
Ummmm
#8Consumer Suggestion
Wed, March 18, 2009
"How is it possible for me to be responsible for $1623.27 worth of transactions when only $539.20 was charged to the card? " It's called INTEREST that you pay every month that you carry a balance. I am surprised you don't get that.... your interest rate is in the terms that you agreed to. Don't want to pay interest? Don't carry a balance from one month to the next.