Saturday, October 13, 2007

Capital One Credit Card Late Fees

I have kept a Capital One credit card for the past couple of years because I had a "fixed" rate of 4.99% APR. Recently the rate went up to 8.99% APR, which was still pretty good. I mainly use my American Express Delta Skymiles card because of the great customer service I receive from American Express and the other benefits that come with the card. Amex is not accepted everywhere though, so I also carry the Capital One card.

I missed a payment last month due to my getting confused about managing payments on bill pay (I've been paying $400 - $700 per month on the card) and cancelled the $50 automated payment I have setup to avoid missing the minimum monthly payment. I was hit with a $39 late fee. I called to have it canceled and was told that they system does not allow the phone reps to cancel the late fee anymore. Instead, a request was submitted and I would get a response in about 15 days.

Well, I'm not waiting for the response. I applied for a credit union credit card that has a late fee of only $20, which is far more reasonable. I don't know yet, but my past experience has been that they are also tolerant of removing late fees once or twice per year on a good account.

Capital One, you're losing a customer and $28 a month in interest fees. Why, because charging good customers $39 for a late payment is no way to run a business.

I encourage all of you to not allow yourselves to be treated this way by your credit card companies. Late fees themselves are not an unreasonable tool to encourage timely payments, but they have gotten way out of hand. Don't forget that we are the consumer and that we can always vote with our feet if the companies serving us refuse to listen.

Check out your local credit unions to tell banks and credit card companies that they are abusing us with their fees.

Use this link to find a credit union:

BTW, don't worry about the membership rules. If you read carefully enough just about everyone and their grandmother is eligible. The rules are only in place because your current banks fear competition from institutions that don't rip-off their customers!


Joe F, Madison, WI said...

In August of 2007, I received a flyer from CapitalOne, notifying me that they were going to raise my credit card rate from 5.99% fixed to Prime + 7.65% (currently 15.9%, a 10% jump) for the September billing period. On 15 August, 2007, I spoke with a Johnathan at CapitolOne who, after I pointed out that I had just paid a substantial amount off, had excellent credit, and could go elsewhere for a card rate much lower than CapitalOne was offering, told me that my rate would remain at 5.99%, and that I would be getting a letter in the mail to that effect. That letter arrived on 20 August (signed by Pat Johnson, Retention Group Manager, CapitalOne Services, Inc.), EXCEPT it stated my rate was going to go up to LIBOR + 04.540% (currently equal to 9.9%) on October 15, 2007. Since this is NOT what I had agreed to on the telephone, I immediately called.

After being bounced around, I ended up having Dave (ICU561, claimed that his only boss was the Board at CapitolOne) at the other end, who stated that Johnathan had no business making that offer, and even though I had WRITTEN documentation from Pat stating the higher rate (but not the 15.9% rate), CapitalOne would not honor it. I told him in no uncertain terms that was unacceptable, since Johnathan, as CapitalOne’s representative, made the offer in good faith, and I verbally accepted his contract. Dave said he would need to “research” it, and would not get back to me until 23 August. He called me on 23 August, and reiterated that Johnathan was incorrect in making the offer, and that the WRITTEN document that I had, with the name of the Retention Group Manager at the bottom, was also now invalid, and that he was going to do absolutely nothing for me.

In late September-early October, I received a SECOND letter, again from Pat Johnson, Retention Group Manager, CapitalOne Services, Inc., informing me that my rate was going to be staying at LIBOR + 04.540% (currently equal to 9.9%). Fool me one, shame on you. Fool me twice, shame on me. CapitalOne is NOT in my wallet.

There is at least one website dedicated to consumer complaints about CapitalOne; it is

Anonymous said...


dddeanna said...

To all the people who whine about late fees and over limit charges. if you are late , you are going to pay a late fee. If they didn’t charge you a late fee , then nobody would pay their bills on time. Also going on vacation is not a good reason to not pay your bill. so just because you go on vacation the world stops and nothing is due. I work for a credit card company and it amazes me that someone will leave on vacation 2 days before their bill is do and complain that they could not pay their bill because they didn’t have access to the internet. Hey here is a thought , pay your bill before you go. Another thing, when you put a deposit in the bank , and it is after a certain time , then it posts for the next day. so trying to pay your bill at 11:55pm doesn’t work, hello credit card companies are banks. Also a postmark does not determine when your payment gets to us. so mailing the bill 2 days before it is due, does not work. If you are close to the time when it is due, then pay your bill on the internet or phone. most of the time the internet is free and for all the whiners who don’t feel comfortable doing that, then guess what, you are going to have a late fee. So the next time you complain about a late fee, here is a thought , take responsibility for your own actions. Another thing a credit limit is exactly that, that doesn’t mean you can spend that amount each month and only pay minimum payments (yes that has actually been said to me) so if you are constantly getting over the limit fees. here is a thought , stop using your card for everything. Also credit card companies can put on your account an over the limit block, but don’t complain about embarrassment if you get declined.
In the end, people grow up and take responsibility for your own actions and stop acting like a jerk or a baby. Oh and one last thing, if you pay your bill in full each month and don’t pay any type of finance charges, and you call up and are upset because they will not reverse any fees. guess what, we are happy to close your account , you cost us money. So don’t be surprised if we are more than happy to close your account and your accounts are not going to break us , there is thousands of people each day wanting a credit card.

K. Foster said...

I also received a flyer from CapitalOne with a promotional offer of balance transfer with no transfer fee, and a rate of 4.99% for one year, dropping to 3.99% thereafter. Also, the minimum payment was to be 10% of the total amount owed.

The first month, no problem. The following month my interest rate is 14.9%. I have good credit and I pay my bills on time. Before I made the transfer, I called CO several times to make sure what I was reading was in sync with my understanding. So, I transferred the balance. Well, now it seems like I just didn't understand. The "supervisor" was very condescending and seemingly unaware of customer service.

CapitalOne is getting cut up!!!!!!

Lisa said...

I do my banking online, and have gotten lax about opening statements. No more. Today, I opened my statement from Capitol One to find a $39 late fee. Shocked, because I always electronically transfer my payment days before the due date, I called my bank. My payment is due on the 22. Funds leave my bank electronically on the 19th. My bank has told me that my funds are available to Capitol One on the 19th of every month. How quickly they process them is beyond the Banks control. Capitol One says they process the funds within 24 hours, but that's a blatant lie. They hold the funds an are processing them exactly one day after the due date, allowing them to charge a late fee and interest, and ultimately raising the interest rate due to late payments. Its' a total scam. My rate is now 23.15% because of nine months of late payments one day after the due date, even though my bank is stating that the funds have been available to Capitol One before the due date.

I'm paying off my balance, and tearing up my Capitol One card. I urge everyone to do as I will be doing and call their Attorney General and Consumer Protection Agencies to complain.

After google-ing Capitol One Late Fees, I have found this site, as well as many others regarding this issue. This is a Capitol One profit center. There are pending class action lawsuits regarding this, and I intend to investigate.

This comment will also be posted on my Facebook Page, and Myspace.

Boycott Capitol One!