Why, if interest rates have come down....

Flash In The Pan

Flash In The Pan

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have Capital One decided to raise theirs? Just received a letter which starts "Dear valued customer" and ends with the announcement that they are doubling the rate they charge (remember this is the company that said their rate would never increase) to 29.8% "due to the economic climate" :suspect:

What a bunch of bankers :thumbsdown:
 
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29.8%!? You'd be better off going to a loan shark.
 
Well Capital One were the company that would give you a credit card even if you had a very bad credit history...it was their big selling point. Perhaps they are just protecting themselves from their bad debt by penalising everyone with a high APR.

There are far better deals around, vote with your feet. You may find that if you're a good customer, they will look into your account and come back with a revised offer.

Cheers,
James
 
It could be because I pay my purchases off as soon as they appear in my online account, I wouldn't imagine they'll be too keen on not getting any interest out of me :naughty:
 
I think you've nailed it - these companies need to make some money from you...good chance it'll be down to your customer profile - give them a call and if their staff are up to it, you may get the real answer.

Cheers,
James
 
Moos3h said:
I think you've nailed it - these companies need to make some money from you...good chance it'll be down to your customer profile - give them a call and if their staff are up to it, you may get the real answer.

Cheers,
James
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That means calling "Pauline" or " "Robert" in Mumbai and discussing Eastenders and the weather with them whilst they rifle my account :nono:
 
Well that alone would have me taking my business elsewhere!

Cheers,
James
 
Now all I have to figure out is why Arnold Clark think I recently bought a Vectra SRi off them :suspect:

I wonder if the two are linked :lol:
 
LOL I got the same letter yesterday too. Although my interest rate has gone up to.....get this .....

34.94%pa

To say I'm disgusted is an understatement.
I would cancel it, but I only use it for emergencies, and it's paid off straight away (which is probably why theyve upped it...although lowering it would have tempted me to use it properly, the stupid tools)
 
It sounds a bit like what Egg did last year, when they vastly reduced limits and in some cases even closed accounts (these were the good creditors).
 
My CC company have started sending me my statement really late,they say payments by cheque require 7 working days to clear, at christmas there weren't 7 working days between me receiving the statement and the due date, miss it once and you get 2 months interest and a late payment fee:razz:
 
We must also remember that the Bank of England interest rate has virtually nothing to do with any other rate.

Banks lend from each other and not the Bank of England, and the billions the government have lent the banks in the so called bale-out is at a rate of 12% so how can they just pass on the meaningless cut from BoE
 
Interest rates are adjusted to sell a certain amount of credit in a month. For example, mortgage lenders have a set amount of funds for February, and they will price their deals based on the amount of money they have to lend. IE, if they've not got much cash, they'll price high to make sure they don't lend too much.

If capital one are increasing rates it probably suggests they are planning to cut back on their loan book. So if you're saying I would have spent this if it was lower etc, then the answer prob is that they don't have or want to lend you the cash. They don't have infinate resources especially in the current climate :)

Also, banks can't afford to lower rates any more at the moment because their main funding at the moment is from deposits since securitisation dried up. To get more deposits they have to offer more savings interest, if they're offering 3% on savings, then they can't lend that money out at less than 3.5, 4 or they'll be loosing money.
 
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wack61 said:
My CC company have started sending me my statement really late,they say payments by cheque require 7 working days to clear, at christmas there weren't 7 working days between me receiving the statement and the due date, miss it once and you get 2 months interest and a late payment fee:razz:
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Virgin did that to me too
I recieved my statement just a few days before the due date :bang:

What I don't understand is why, when I pay with a DEBIT CARD it STILL takes 3-4 days for the money to credit my account. 1 day late, so they sent a letter saying that counted as a late payment and they were ending my discounted interest period. :eek:
I voted with my feet that same day. All balance transferred.
 
A couple of years ago I received a letter from Capital One after my card expired:

"Dear Sir, Due to the way your account has been managed in the past, we cannot offer you a new credit card."

Followed a month later by:

"Dear Sir, Due to the way your account has been managed in the past, we can now offer you a new credit card."

The credit card had never been used and had always had a zero balance! I told them to get lost!



Steve.
 
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