A close family member of mine recently told me that Capital One raised her interest rate without reason. Apparently they raised it from about 5% to a whopping 15%, which, on a multi-thousand dollar balance, will add up to a wad of extra interest paid each month.
After some extra investigation, including running her free credit report via AnnualCreditReport.com (the REAL government website), I found that she made no credit mistakes since 2004 (and only minor ones back then anyway). So Capital One did truly jack up her interest rate through no fault of her own.
So she called Capital One and was told “it’s nothing that you did. The company decided to increase across the board due to the economy“.
So she, and many others, are paying for the faults of others. In my relative’s case, though, she has the option of transferring the balance to a Discover card at 0% for almost a year. Even with the 3% transfer fee, she stands to save hundreds in interest over the next year.
After googling for more issues with Capital One and increased interest rates, I found the following:
- MSN Money forums
And there were many more!
How about you? Did you see your interest rate spike? Did you call Capital One about it and get the runaround or “sorry, it’s not you, it’s us” reply?