Consumer complaint received 2019-01-06
Company: CAPITAL ONE FINANCIAL CORPORATION
State: WV
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Charged too much interest

Complaint:
Me my wife have had a XXXX  XXXX XXXX XXXX XXXX credit card for years. ( XX/XX/XXXX ). Account kept in good standing with no late payments. Capital One acquired all of these accounts so everything migrated from XXXX  XXXX XXXX to Capital One. 

1st billing cycle with Capital One ran from XX/XX/XXXX-XX/XX/XXXX. Previous new balance was {$3400.00} and payments/credits were {$3500.00} ( more than prior carry over balance ). There were NO carry over interest charges or fees. Charges totaled {$6000.00} leaving a New Balance forward of {$5900.00} to START the 2nd billing  cycle. 

2nd billing cycle ( XX/XX/XXXX-XX/XX/XXXX ) with Previous balance the same as balance forward from 1st billing cycle XXXX {$5900.00} XXXX. During this billing cycle payments/credits equaled {$4100.00} which was less than the previous carry over balance so I fully expected to incur interest charges. These totaled {$52.00} and posted to my card on XX/XX/XXXX. Charges this cycle equaled {$2600.00} leaving my NEW BALANCE FORWARD of {$4500.00}. This balance forward was effective XX/XX/XXXX. 

3rd billing cycle XX/XX/XXXX-XX/XX/XXXX with a starting balance forward of {$4500.00}. THIS CYCLE I HAD PAYMENTS/CREDITS OF {$7000.00} which was {$2400.00} MORE THAN THE PREVIOUS BALANCE FORWARD. I was charged {$45.00} in interest charges on XX/XX/XXXX even though I had paid the previous statement new balance and {$2400.00} over and above the previous balance. Charges for this period were {$3600.00} to leave a NEW BALANCE FORWARD of {$1100.00}. 

The entire time the XXXX  XXXX XXXX card was in effect, as long as at least the balance forward from the previous statement was paid in full, new purchases had the benefit of the new purchase grace period. The above scenario NEVER OCCURRED with XXXX XXXX XXXX. 

I called Capital One thinking it was an error on their end since I had paid the entire previous months balance plus almost {$2500.00} to offset the current months charges. CSR advised that that if the grace period is not meet for one month, even if you pay the balance the next month, they still calculate interest on new purchases. This is not ethical or fair. In fact it is predatory. I requested to speak to a supervisor. I was given the same scripted explanation which besides being unfair and predatory, it also just does not make sense in any way other than a way for them to extort additional interest while ignoring the fact that in the course of making payments the previous months balance was satisfied in full. I then requested for the interest to be waived. The supervisor told me she looked and said I " did not qualify for an interest waiver ''. I asked her why and she said " you just didn't qualify ''. Having never been in default, been a long term customer, have NEVER had any fees waived in the past and with the amount I use this card for ( $ XXXX+ annually ) I would think I would be a preferred customer but that is their " policy ''. 

I think there has to be some sort of law or statute that protects consumers from this type of misleading and predatory application of payments. Capital One is intentionally applying payments in a way to take advantage of consumers to extort additional interest when in reality the previous balance was actually paid in full meaning new purchases should NOT be subject to interest charges because the new purchases are not being given the agreed upon grace period for new purchases that is part of credit card terms of agreement. 

Also in regard to application of payments, apparently purchases made at XXXX XXXX   stores with this card receive a promotional interest rate. I was not aware of this. On the FIRST BILLING CYCLE there were total charges for this promotional rate of {$680.00}. Over the next 2 cycles I made payments totaling {$11000.00}. Capital One intentionally applied payments to this PROMOTIONAL BALANCE so that it only dropped to {$590.00} & {$550.00} respectively to charge interest of {$4.00} & {$4.00}!!! 

I can understand the interest charges that were applied for the FIRST month where I did not pay the previous statement NEW balance in full, but after that, I feel that I should have no interest charges at all and further over 2 months, paying {$11000.00}, the promotional balance should have been XXXX out rather than misapplying payments in order to maximize carry over balances to charge more interest. 

I suggest a class action suit should be considered against Capital One for its misleading and predatory practices against consumers.

Company response to consumer: Closed with explanation