Consumer complaint received 2023-07-26
Company: CAPITAL ONE FINANCIAL CORPORATION
State: FL
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Closing your account
Sub-issue: Company closed your account

Complaint:
Dear Sir/Madam, I am writing to you in regards to my Capital One Credit Card accounts XXXX 

I was extremely disappointed when on XX/XX/2023 my Capital One Spark Business Credit Card with number XXXX was suddenly canceled without any notice. In addition, my Capital One Savor Card with number XXXX was also closed on the same day. 

When I called in, I was informed that it was closed due to usage inconsistent with expectations. They did not specify whether it was the Spark Business or the Savor card that was the issue. However, in either case, this does not make sense. Each of these cards have been open for over a year, and both accounts were in good standing and not past due. 

The Spark Business card has always been used consistent with a business card ( for business purchases, travel etc ). Never once did Capital One inform me of any potential issues with the way I was using the card. There has never been any issues as far as late payments, unusual transactions or fraud issues that could have caused Capital One any legitimate concern or costs. Due to significant usage in the hundreds of thousands of dollars per year, the card should have earned Capital One significant revenue from merchant processing fees as well. 

As for the Savor Card, I used it almost exclusively for dining. If this was not the intent of the card, Capital One should not advertise it as 4 % cashback on dining and should tell clients they have to use it in other ways too, and not just at restaurants. I understand that you may be receiving less than 4 % in merchant fees on this card, so this possibly could be a cost center for Capital One. However, punishing a client for using the Savor card based on its advertising is extremely unfair.

It is clear that the Spark Card and the Savor card were certainly being used in the exact manner expected and/or advertised.

I have always given Capital One priority for my business and personal ( Savor ) spending when it comes to credit cards. I put my trust and faith in Capital One. The fact that you just closed not one, but all of my accounts without any real explanation nor reason is very frustrating and disappointing. 

The closure of these accounts is also very significant for me because it has a high impact on my credit score. Almost all of my available credit limit was with Capital One across the two accounts. Now, with all of them closed, I am now constrained to a very small credit line and my credit usage is now very high. I am unable to continue operating my business effectively.

This has in turn caused my credit score to drop without any other adverse factors. In turn, this is now making it impossible for me to obtain new business credit card accounts. Therefore, the account closures have resulted in significant, long-term damage to my credit score as well as tangible monetary damages to my businesses. 

I respectfully ask that Capital One re-open the accounts, notably the account # XXXX, which is the largest credit line and the most impactful to its business. If there is any particular type of spending or merchants that Capital One feels that are inconsistent with expectations, I would ask that you disclose this clearly, and I can certainly review that and likely avoid it. By reinstating the accounts, Capital One would avoid the liability for the damages currently being sustained by my businesses due to having rejected payments for business expenses, late fees on those rejected payments, and general inability to conduct business. 

I have already written to the Capital One Executive complaints department ( at XXXX XXXX  XXXX XXXX, XXXX, VA ) as well as by email, but did not receive any responses. 

I also applied for a new card with Capital One, ending XXXX and was approved. However, when the card arrived, I found out that the account was already closed. This makes no sense since I was approved for it, it should not have been closed right after opening. 

In any case, the phrase of " activity inconsistent with expectations '' is an absolutely incomprehensible term and Capital One must have the obligation per Dodd Frank rules to clearly describe what the issue was with the accounts. In the event that the issue was a mistake, Capital One must have the obligation to remove erroneous information from their files ( per the Fair Credit Reporting Act ) and re-instate the accounts.

I expect that Capital One follow both Dodd Frank and FCRA rules in this matter, as not doing so would result in further action from the CFPB. 

Regards

Company response to consumer: Closed with explanation