Consumer complaint received 2022-06-13
Company: CAPITAL ONE FINANCIAL CORPORATION
State: MN
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:
Application date : XX/XX/XXXX Approval date : XX/XX/XXXX Account closed date : XX/XX/XXXX Account Close Letter date : XX/XX/XXXX Rewards order number : XXXX Reward amount XXXX Reward point available : XXXX Annual Fee charged on XX/XX/XXXX Annual Fee amount paid : {$390.00} Capital One closed my account ending in XXXX on XX/XX/XXXX, while I was on a road trip in XXXX. Letter dated XX/XX/XXXX from Capital One noted the below : Were writing to let you know that this Capital One credit card account has been closed for the following reason : Capital One has observed activity on a past or present Capital One account that is not consistent with anticipated account activity based on Capital Ones account opening and ongoing due diligence. 

Unfortunately, it cant be reopened, and we are not able to offer additional information about this decision. 

I disagree with the statement above made by Capital One. If the account was closed due to activities of a previous Capital One account, Capital One should have sufficient Know Your Customer ( KYC ) policies and procedures in place to identify individuals that have previously been identified as not suited for obtaining a new account. Capital Ones policies and procedures should have prevented such individual from obtaining new credit. Capital One should not close an account after three months from account opening when the individual had spent over {$12000.00} on the card, paid the annual fee of {$390.00} and had XXXX in reward points without sufficient disclosure. 

If the closure is due to the activities of the present Capital One account ending in XXXX, I would challenge Capital One to share their algorithm, policies and procedures to identify this account as inconsistent with anticipated account activities. If the present Capital One account is what caused the account closure, I believe Capital Ones algorithm, policies and procedures used to identify my account for closure is potentially problematic. The algorithm, policies and procedures are potentially targeting individuals protected under federal law from discrimination. 

At the time of account closure, I had paid {$390.00} in annual fee on XX/XX/XXXX, and I had XXXX reward points. When the account was closed on XX/XX/XXXX, I was not refunded the {$390.00} annual fee. Also, rather than applying the rewards points against my travel purchases at XXXX XXXX  per reward point for a total of {$1400.00}, my reward points were redeemed at a lower XXXX cents per point for a total of {$740.00}, which is one half of the amount I am entitled. This practice of not giving customers a chance to redeem rewards and refund the annual fee are problematic as well. 

In my entire career as a XXXX XXXX in the XXXX XXXX XXXX I have not seen such problematic practices. I am asking the CFPB to investigate my claims of Capital Ones KYC policies and procedures, algorithm, policies and procedures of identifying activities which are not anticipated and problematic practices of not refunding the annual fee and the automatic redemption of rewards at lower rate.

I request Capital One to refund my annual fee of {$390.00}, and issue an additional {$740.00} in rewards because it was redeemed at XXXX XXXX  per point vs XXXX XXXX against my travel purchases. Thus, the total refund request is {$1100.00}. 

Thank you.

Company response to consumer: Closed with explanation