Capital One Kmart Mastercard charged "fees" on closed account AND increased percentage rate ripoff business from hell evil dirt bags deceptive company Richmond Virginia
My husband recently closed his Kmart Mastercard, issued by Capital One, because no matter how many payments of $100 on a balance of $500 the card was not getting paid off. If they recieve a payment ONE day late, there's an extra $29 added on to your balance. We figured that as long as the payment is postmarked by the due date, we were okay. WRONG! That's where they get you!
After we cancelled the card, the next statementt showed a "membership fee" of $4 that would be added to the balance each month until the card is paid off. This is BS! I read the fine print and this was included but the fine print did not say anything about intrest rates increasing! That's right his intrest rate went up after he cancelled the card!! I thought that by law we were required to have notification when they decide to increase the intrest rate. We did not receive any phone call or written letter stating the increase.
Capital One are terrible, greedy pigs that do not deserve the business of anyone. If you have a Capital One card, destroy it and never do business with them again! All they want is your money and they will add "fees" and other nonsense to STEAL YOUR HARD EARNED MONEY!
Jessie
Bullhead City, Arizona
U.S.A.
1 Updates & Rebuttals
AJ
St. Louis,Missouri,
U.S.A.
Avoiding Fees, do not assume that credit is simply an alternative source of income
#2Consumer Suggestion
Fri, January 09, 2004
I have seen a number of comments that criticize credit card companies for the "late" and "over-limit" fees, and honestly, I do not believe that this is the big "conspiracy" that everyone claims it to be. Yes, credit card companies make money on this, and yes, there are ways to avoid these fees. I would like to offer some suggestions, particularly with regards to Capital One accounts:
Firstly, do not assume that credit is simply an alternative source of income. Credit is money that is much like a signature loan, except that you are able to continue spending on that total loan amount once the account is paid below that amount. Keeping credit cards near or at the credit limit is, in my opinion, ONLY asking for trouble.
If the account is below the credit limit, and finance charges and interest force the balance to exceed the credit limit, lenders typically will not charge an "over-limit" fee. I have had this happen in the past with Providian, Capital One, and Cross Country Bank, and have not had an "over-limit" fee incurred because of it.
ANY late or over-limit fees can be attributed to my own stupidity. If I mail a payment the day before the due-date, I know I'll get a late fee, and more than likely, an over-limit fee if my account is already at the limit. I have learned to use the online systems, and Capital One and Providian both do not charge me (I actually plan my payment ahead of time with Providian to avoid the "express fee". Proper planning is essential, and the payment is most assuredly applied the day that electronic payment is "made".
I will attest that I am not an employee for any credit card or banking company (I work for a manufacturing company). I have struggled with credit issues since my last marriage to a financially irresponsible woman (circa 1992). My credit scores have gone from the 400/500 mark to over 600+ since then, and the credit cards that I have are all pretty much from "sub-prime" lenders. When I first got the cards, I maxed them out, and yes, I found myself in trouble, as many have reported on this site. My accounts, including my Capital One KMart account, are all in good standing, and will be at or near a ZERO balance in the next 1-2 months.
I would STRONGLY encourage people to review the terms for any credit card before applying, and also to research and understand "banking terms". I have heard a number of people claim that the company has "made it's money through the charge-off", and that is not true, they have merely offset the loss to some degree. Interest is accrued on the account DAILY, thus, paying on the due date will not offset interest charges, even if the payment matches the card balance in full. I have seen changes in interest charges depending on whether I pay on the 15th, or on the 24th (due date).
My point, plan accordingly, be responsible with credit, and don't pay the minimums if at all possible. Prime lenders, such as Chase, MBNA, etc., all are in the business to make money, as are Capital One, Providian, etc. There are simple ways to minimize this, and it simply takes understanding and utilizing some good common sense. I understand that some people are in worse positions now than they were prior to accepting a card, but those people should ask themselves the following questions:
1. Did I look at the terms COMPLETELY before I applied?
2. Did I use my credit RESPONSIBLY? (are you maxed already?)
3. Did I PAY my bill responsibly? (e.g. more than minimums, etc.)
4. Am I able to pay my bills if something happens?
After learning some painful lessons, I have established that my total credit card balances will NEVER exceed more than I can pay in a six month period. If I set my total credit card payments at $200, then that means that my charges will NEVER exceed $1,200 on ALL cards combined. If I can afford $500, then the most that should be on all cards at any given time is $3,000.00. Also, try to maintain at most 50% usage on your total limits at any one time. Essentially, if you are maxed on one card with a CL of $300, and you have another card with no balance and a CL of $200, don't use the other card until you have at LEAST paid down the first card below $200-250.
I'm not an expert, and I also agree with some individuals who have posted about predatory practices of some lenders, but in all honesty, not all of these complaints are the result of the credit card company. Missing a payment or two will result in collection calls. Solution: Don't miss a payment. Returned check, late, and over limit fees substantially inflate the account balance, making it that much more difficult to pay. Solution: Make timely payments, use online payments (or money orders if you cannot or will not use online payments), keep your balances well below the limits, and make your payments on time. If the due date falls on a date that is a bit more difficult to manage a payment, either request a change in due dates (I have done this on one card), or set aside money when you have excess (and if you don't have excess, you probably shouldn't have used that much credit in the first place) set it aside, send in that money as your payment, and place the money that was going to be your next "regular payment" in that spot for use on the next month.
Destined to qualify for "prime" credit by 2005!