Consumer complaint received 2018-09-21
Company: CAPITAL ONE FINANCIAL CORPORATION
State: IL
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Unexpected increase in interest rate

Complaint:
I applied for a 0 % interest card with Capital One to help with keeping my small business operational. My application and balance transfer was completed in XX/XX/XXXX. With the XX/XX/XXXX statement ( payment due in XX/XX/XXXX ), a portion of my balance was subjected to a higher purchase interest rate. XXXX XXXX has not provide any information on their monthly statement that clearly identified when the promotional rate would increase from XXXX percent to the purchase rate ( 22.65 % ). There was no information/disclosure in the monthly statement that indicated that the promotional rate would expire on a given date. I have used these 0 % rates to help offset the costs of my small business, and have experience with other card issuers who do provide detailed statements that clearly identify the promotional rate and end date. This is common among other card companies, and I can provide multiple examples where this is reported, legally and ethically through other credit card companies. Capital One does not provide this information. I have been paying around {$120.00} per month to them under their promotional rate. 

When I received a statement from Capital One last month ( XX/XX/XXXX ), there was a portion of my balance subject to a " purchase rate ''. There was also a " Interest Saver '' payment option identified, which had no apparent explanation. At that time I contacted the Capital One call center and spoke with a representative who was going to look into the rate and provide me with an explanation and correct the issue. They also instructed me to review my account online, and that the rates and period would be available there. I never received a call back from Capital One, and I reviewed my account online, but there was no information pertaining to when my promotional period would end, what the " Interest Saver '' option was, or when the standard purchase rate would be applied. 

When I received my XX/XX/XXXX statement, the interest rate of 22.65 % was now applied to my entire statement amount. Total interest for the period was calculated at {$200.00} and my monthly payment is now {$310.00} - more than double typical monthly payment amount. Again, with no disclosure of any impending rate increase resulting from the promotional period ending. Additionally, no mention of a " Interest Saver ''  option. 

Tonight I contacted Capital One and spoke with a supervisor. They reviewed my prior request and informed me that they would not address my concern. That I would have been notified in a small disclosure initially ( at time of making the initial balance transfer ) of the timing for the promotional period and that it would have been my responsibility to contact them to find out when that period would end. I contacted them last month, they did not provide that information, nor did the online account through their website as they had advised should. 

I would like to close my account and never deal with Capital One again, and will pursue doing so for personal and business accounts, however, I am now facing hundreds of dollars in interest charges that will continue to increase as this goes on. As a small business owner, this is not something that I can absorb. I would be happy to transfer my balance to another institution for a 0 % promo offer, or a reduced interest rate, but prefer not to pay anything to a company that certainly has the resources, but does not provide disclosure of the end date of promotional offers. If I had even a month 's notice, I could have initiated a transfer to another account with a lower ( reasonable ) interest rate. My credit score/rating will demonstrate my integrity with paying creditors on time every month for what is due. This is not a reasonable approach. 

I would like to ask for you to intervene and request Capital One to refund my interest charges to date. In the meantime, I will transfer the remaining amount financed to another financial institution that will provide me with appropriate and reasonable notification to prepare me for the completion of my promotional rate and not attempt to mislead me with minimum payments versus " Interest Saver '' Payments. 

Thank you for your consideration.

Company response to consumer: Closed with monetary relief