According to an article in Law.com, one can surmise that President Obama’s Credit CARD Act has not given Capital One pause, among other banks like Bank of America; all being banks bailed out by America. The Act limits when credit card interest rates can be increased on existing balances and allows consumers whose interest rates have been increased to reduce their annual percentage rates (APRs) to previous levels if they’ve honored their contract for six months.
Ryan Schneider, president of Capital One Financial, stated in a letter to Rep. Betsy Markey, he will not raise rates as she requested after she had drafted a letter signed by 17 members of Congress. They continue to raise rates in New York, but slyly, through the practice of imposing annual fees that were waived in prior years for their customers in good standing. When annual fees are challenged, they point to the economy and their credit card losses. How ironic and arrogant.
How do I know this? I personally called Capital One on October 27th and had a major discussion with an account manager about raising interest rates and annual fees. He diplomatically explained to me the business of business: profit; and how their profits had been grossly and negatively affected by current consumer default and late payments (America will see the truth of that at the end of the quarter).
I’m no Ann Minch aka Rockerchic4God, but the silent retort in my head was “Capital One, are you stupid?” My argument was simply that if Capital One or any other bank continually raises interest rates and tacks on or reinstates annual fees, you will continually have credit card default and late payments. I further explained that it makes sense to do for their customers what the Administration did for them. Of course they are not in the business of making sense, so no resolve.
On the evening of October 28th when I contemplated contacting Suze Orman (since she had Ann Minch on her show), guess who calls me for a chat? Capital One! I was elated! I thought, hey they considered our conversation and they’ll drop the annual fee and return my interest rate to 6.17%. Nope. That makes too much sense. It was a survey. A survey? Yep. A survey to zero in on the issue and the customer service rendered. They asked questions to which I was to answer; but they already knew the answers. I was to rate the answers. Just taking up my time. More arrogance! Let us think credit unions and community banks…
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