I applied for a capital one CC in this past Sept. I never received, nor did I get a decline letter, so I figured the application never got there or they declined it and just never notified me. Anyway, when I ran my CR at the end of OCt., I noticed a new Cap. one acct was opened. I phoned them and inquired about it and was told that I was approved but the card came back to them because of an address error. After discussing the issue with CSR, I decided I no longer wanted the card, he said no problem and cancelled it. Fast forward to yesterday. I got a letter from them stating that they couldn't close the account because I had a balance of $59 for the membership fee. On top of that, I now have a $29 late fee for not paying it and it has been listed on my CR as 30 days past due. Is this legal? As I said I never rcv'd the card, they have my new address and still haven't sent it, nor do I want it. What are my options? Do I have to pay this money to close this account? And how do I get them to reverse the late fee? Thanks
First, let's get back to basic contract law. An enforceable contract consists of an offer, an acceptance, and the passage of some thing of value. I see neither an acceptance nor the passage of anything of value here. 1. You applied for a card. They approved it (offered you a crad with certain terms and conditions). Your acceptance of the card and its conditions is evidenced by your actually activating the card, which you did not do. Nothing of any value passed between you and them. 2. They cannot turn around and say "you applied for the card, that's the offer, and we approved it, that's the acceptance" because still (a) nothing of any value changed hands and (b) an application for a card is not an offer of credit with certain terms and conditions. 3. Their Annual Fee and the late charge they imposed on you for its non-payment cannot be assessed until the card is actually activated, showing your acceptance of the card and its terms. 4. They have already trashed your credit? I would IMMEDIATELY file a small claims action against them claiming extortion and fraud as causes of action. My damages claimed would be the maximum allowed by Small Claims in your State. No notice or ITS letter need be sent, since they knew or should have known that the card had not been activated by you and that therefore the card was never available for use. 5. Any judge enforcing Cap1's claim against you would be an idiot. Abuot 15 years ago I applied for a 2nd mortgage. I refused to sign the papers at closing and walked out, leaving the check on the lawyer's table. Enforcing cap1's claim against you would be like allowing taht bank to foreclose on my home, even though I never approved of the loan, never signed anything anmd did not recieve the proceeds.
