Wow, I just dodged a bullet. On February 8th, I wrote MISSION ACCOMPLISHED? about establishing an emergency fund and paying off my Capital One card. I also mentioned that they have never jerked me around by raising my interest rate or trying anything “fishy”.
Apparently, the payoff came not a minute too soon.
Yesterday, I received a cute little booklet from Capital One highlighting changes on my account. Although there are not many changes overall, a rate increase is one of the few. My previous rate at 13.9% would be increased to 17.9% as of 1/28/2009. I find this date odd, as I received the notice on 2/28/2009. ONE MONTH after the rate increase. Luckily, the balance had been resolved, and it did not cost me anything. There are also sections on increases for cash advances and default rates, but I do not pay much attention to those. They do not apply. (I have never defaulted or taken a cash advance on this card.)
I guess the card companies are going to get every extra penny they can before the new credit card regulations take effect. SEE:New Credit Card Regulations For 2010.
On the last page of the pamphlet, Capital One allows an opt-out of these new terms. How sweet of them. To retain the same rates you are currently paying, all you have to do is….CLOSE YOUR ACCOUNT!!! That’s right, stop using the card altogether, and they will close the account for you and graciously allow repayment at the lower rate you originally had.
If you are a Capital One customer, and you received a similar notice, what will you do? I intend to keep my account with them open. They have always been decent to me, and because of credit problems in the past, I want credit accounts with long histories and excellent repayment records. If you have problems repaying, I recommend that you close your card and repay them ASAP. That way, you will not be surrendering a 4% increase in rate, thus paying even more over time.
Capital One, you just missed me. I will not succumb to your arbitrary rate hike. In fact, I do not intend to pay you another cent in interest on this card. I’d like to say I’m sorry, but that is not the case. You almost had me…but you waited too long. Now the profits will have to come from another hard working, responsible account holder of yours with a good repayment history.