Complaint Review: Capital One

I'm disabled on a fixed income. I needed a lot of dental work and have no insurance. My dentist suggested I take out a Capital One healthcare loan. I applied and was granted a $2,700 loan (which was sent directly to the dentist) that day--November 14, 2007.

Terms according to the loan disclosure were: 48 monthly payments of $82.15; 19.99% interest. However, first twelve months were INTEREST FREE, with NO PREPAYMENT PENALTY if I paid off the whole loan by November 14, 2008.

It was tough, but I made 12 online payments, and the loan was paid in full by November 14, 2008. I received a letter of Congratulations from Capital One, saying that my loan had been paid in full, and my bank statement showed the $200 payment clearing my account on November 14, 2008.

Two weeks later, the day after Thanksgiving, I received my first call from Capital One's collection department. Would I like to make a payment over the phone because I missed my last payment.

No, I didn't miss my last payment, and I have a letter from you saying that my loan is paid in full.
Yes, you did miss your payment. It says here that your payment was returned by your bank because it couldn't locate your account number.That makes no sense. If my bank couldn't locate my account number, how could they have paid it in the first place?

Would you like to make your payment over the phone?
Do you understand my question? How could my bank make a payment if they couldn't locate my account number?
Would you like to make a payment on the phone? You now owe $288 with interest and late fees.Can I speak with your supervisor?Yes, please hold.Which I did for five minutes, and then hung up, called them back, and had almost exactly the same conversation.

This went on for two entire months. At no time was I given any recourse other than to pay what I didn't owe. At no time did I talk to someone who didn't treat me with disrespect. At no time did I talk to anyone who had an answer, or was willing to get an answer. Every time I was transferred several times, and very often hung up on. They reported me as 60 days late to the credit bureaus, and my flawless credit was damaged to the point that my credit score was 605, and I couldn't move to the apartment I was really excited to move into. Another credit card closed my account because of the adverse credit reporting of Capital One. I used this credit card every month and really needed it.

I went back to the dentist's office because the receptionist offered to call them and solve it for me. When she hung up the phone, after 55 minutes being transferred, hung up on, and transferred again, she threw up her hands and said, "sue them."

I did just that. I filed in small claims court in New York City. It took three more weeks before they stopped harassing me on the phone. Then, a very different representative from Capital One began calling me to "reach out to you, and see if we can't get this resolved." I told her I wouldn't trust anything she would say, and that I had been disrespected for two months and my credit ruined, and it was just too late now. New York small claims court is limited to $5,000. Capital One received $3.56 billion in Tarp money. Keep those two figures in mind while I tell you what happened in court. Capital One had hired an attorney. Of course, he asked for an adjournment (which is the same thing as a continuance in other courts), based on this letter that I quote: Capital One is conducting an internal investigation of all Capital One Records and thus far has found no accounts or business records which reference the Plaintiff's name...

I looked at the Judge and said, "the reason stated for Capital One asking for a continuance is a lie, your honor, and I have proof on my cell phone voice mail as well as conversations that I taped with their consent on my personal digital recorder that Capital One does indeed know who I am and have in fact called me four times this week."

Nevertheless, the Judge granted the adjournment because, according to the clerk of the court, "they always grant the first adjournment."

I had to get up before 6AM to make the long trip into New York City. I'm glad I was still a little sleepy when I got on the subway at Penn Station to go downtown to court. The entire opposite wall of the subway car was covered with Capital One advertisements. What's in your wallet? Let me tell you what isn't in my wallet. A drivers license with the address where I was all set to move but couldn't because of Capital One's fraud. Money that I don't have because I've had to use my debit card for everything since my credit card closed my account because of Capital One's fraud. (Yes, I know that's financially a lot sounder, but try living on SSD without a crutch), and, if it would fit in my wallet, a good credit report and score. Capital One: What they're going to TAKE from your wallet!!

Laney
tivoli, New York
U.S.A.

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