So I just got a notice from Capital One saying that:
"at Capital One we are committed to providing valuable customers like you with honest and open communication. Today, we're notifying you that terms of your account are changing."
"Due to the extraordinary changes in the economic environment, we're reviewing our existing credit card accounts. . . . [and] we will be changing your Purchase and Balance Transfer rate. "
After 2010 the rate will go up to 17.9%, and vary by adding 14.65% to the Prime Rate. Then, they are raising my default rate to 29.4%. It may vary monthly and will be determined by adding 26.15% to the Prime rate.
Then, they give many many many helpful instructions as to how I may decline this charming offer, and close my account.
I am a valuable customer. They just told me so. They are going out of their way to get rid of me.
Cui bono?
[The Ka of Deborah Kerr sez: this is my virgin blogpost here, folks, so years from now when you talk of this -- and you will -- -- be kind.]
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Well, that's one way to stem the deflation risk!
And so nice to see you posting here!
I think AMEX did the same thing
They actually gave people, like $200, to close their accounts.
Well, as Stirling said somewhere, "learn to be happy." Which isn't the same as having credit. Although, on the other hand, as some weasel of a bartender said one of the Travis McGree books: "Money can't buy happiness. But it can sure take the sting out of being unhappy."
So, if this causes you difficulty, sorry for that. I mean, it's hard to buy, say, plane tickets with plastic. Two-tier society, here we come! As if we weren't already there.
"First they ignore you, then they ridicule you, then they fight you, then you win." -- Mahatma Gandhi
"Without plastic," you mean -- yes? n/t
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Christopher from India
assured me when I called about that notice that the current APR remains the same if you are not late on your payments. I think two times does it. Since we are great customers (according to him and where is my fruit basket?) we have nothing to worry about. Reeeeeeaally? I take this trend as something to be quite worried about. One lost job, one or two late payments and you are paying 29% APR? That's straight up bullshit.
One late payment is all CapitalOne needs
and they will increase your interest rate to one that makes a usurer shiver in delight. Right now they're voluntarily limiting themselves to 29%, but don't count on the rate remaining that low. The economy will continue to crumble and consumers will continue to default and go bankrupt. Someone will have to eat the losses (not CapitalOne, of course, or its investors). Had Congress passed a cap on permissible interest rates then you would be protected from rates exceeding 35%. But, alas, Senator Obama and his ilk declined to support that legislation because they thought 35% was too high, hence, we're left with no cap whatsoever.
Like matter and anti-matter, Republicans and the truth are unable to occupy the same space.
Nice post CCB. And good luck with the credit card. n/t
n/t
I love this job!
My strategy so far is not to get so pissed off that
I get in a huff and do what they want, which is to close my account -- though I came close to doing just that -- but to keep it open, and buy no more, whilst paying the balance down and keeping that juicy unused credit line open . . . until the very very very last day . . . because I think that will give them -- paws.
Or something.
Thoughts?
Reporter to Mahatma Gandhi: What do you think of Western Civilization?
Gandhi to reporter: I think it would be a good idea.