CAUTION! Capital One Bank is offering some of their cardholders the option of lowering their interest rate on purchases. To do so, the cardholder returns a form that says "I want to take adantage of the fixed rate of 12.9% and other changes described in the Important Information ..." Listed as a footnote in the Important Information is the following: "Non-introductory rates are subject to change if (i) you do not kep your Capital One Account in good standing; or (ii) you do not maintain good standing on your other credit accounts and excellent performance with the credit bureaus. To be in good standing includes not being overlimit, 30 or more days past due or restricted." If you accept the lower interest rate offer, you are also accepting this very important change in the cardholder agreement. If your credit report ever becomes less-than perfect, your interest rate will go up. And we've all seen stories on how inaccurate many credit reports are. I suspect this offer is being made to their unsuspecting customers that may have possible negative information in their credit reports. P.S. Exactly what does 'restricted' mean? Is it a credit card that I closed at consumer request because I didn't like the bank's new cardmember agreement (and am paying down the balance according to the old agreement)? My Battle With Advanta National Bank http://cashonly.tripod.com Bank Scams: How Banks Trap The Unwary http://bankscams.tripod.com
RE: Capital One Bank lowers ra This is usually the case with any bank; however, not all banks exercise it. Recently, Citibank has been blasted for raising interest rates to an ungodly level for its cardholders who have had negative information reported from other creditors. I'm thinking this has been the case with First USA too, but I'm not really sure. Nonetheless, most cardholder agreements include the banks' right to do this. Not only do the banks rely on their own relationship with a customer, they keep an eye on your credit reports. This is especially true when you request a credit limit increase. Right or wrong, that's just the way it is. It seems that the sub-prime lenders are better at relying on their own information, but they usually charge a higher interest rate anyway, and quite a few of them tend to reward their customers simply for taking steps to improve their credit rating. Even so, customers who fall behind usually meet extremely harsh consequences. Because creditors are constantly eyeing your credit reports, and the CRAs are constantly making errors, it's a good idea to order copies of your credit reports at least once a year. By the way, "restricted" can mean several things. Yes, it can mean what you decribed, but as long as you're paying off the account as agreed, you shouldn't have any problems. It wouldn't hurt to ask them about this. Restricted accounts are normally those in which the customer's charge privileges have been cut or reduced due to late payments or non-payment.
RE: Capital One Bank lowers ra A wise warning. Folks, watch out for sharks such as these. My advice is to RUN away from this company, or any other company that treats it's customers so shabbily by applying hidden or back-door tactics to increase revenue at your expense. If you choose to try and do business with them anyway, read all of the fine print, as the original message advises, and fully understand the implications. Remember, there is no free lunch. I could tell a horror story about my spouse's own run-in with C.O., but the matter is not settled under Regulation Z of the Fair Credit Billing Act. Therefore, it would be inappropropriate to comment further.
