Consumer complaint received 2015-07-10
Company: CAPITAL ONE FINANCIAL CORPORATION
State: MA
Product: Credit card
Issue: APR or interest rate

Complaint:
We have been a customer of Capital One for many years. My XXXX mother has been responsible for paying certain bills to allow her to remain financially independent ; however, her memory has been an issue of late, and I noticed that the Capital One bill was not paid timely. As soon as I saw this I paid the amount due of XXXX ( XXXX/XXXX/15 ). 

I reviewed to see why the payment was so high, as we do not use the card much and the minimum payments are normally XXXX. Due to the missed payment for XXXX and XXXX, Capital One increased our interest rate from 4.92 % to 29.40 %, effectively increasing the minimum payment from XXXX to XXXX ( more than doubled the minimum payment ). 

I called Capital One and spoke to several people who told me that per the " Terms and Conditions '' they were unable to lower the rate on the card for XXXX months. However, it will be impossible for us to pay the minimum payment of XXXX. Essentially we will go delinquent due to this drastic rate increase. 

Up until this small issue, we have always paid on time. The fact that my mothers memory contributed to this makes it even more upsetting, as I can not now explain to her why the minimum payment has more than doubled, and we are on a fixed income unable to pay that drastic increase. 

All I have asked Capital One to do is put me back to the interest rate I have been at up until a couple of months ago. XXXX rate is robbery. We are good customers who paid in full once we realized there was a missed payment. It is unreasonable for Capital One to think that customers can pay such an interest rate, especially when we have been timely all along. 

My father went into the hospital on XXXX XXXX, thus I was not thinking about this bill at that moment, but as soon as I was made aware I paid the balance due in full ( XXXX ) I promised Capital One that I would put the account on autopay so that we do not run into this problem in the future if they would lower my rate back to what it was for years ( XXXX ) ; however the reps continuously told me that they were unable to change the rate, and that I would have to pay 29.40 % for 1 year before they would review. 

That is a difference of making {$1700.00} in payments in a year to {$4400.00}. All because we missed a payment and caught up as soon as I was made aware? I told Capital One that this account will go delinquent at 29.40 % -there is no way that we can financially afford to pay almost $ XXXX over the next year. Will they help us only when we go delinquent and ruin our credit? Is that the best answer? 

No, it is not. This rate increase is punishment for a late payment that is not in character of the account. It was a mishap due to my parent aging minds, and I do not want to embarrass them telling them that the reason the payment more than doubled is because they forgot to pay the bill. 

I am only asking that my rate be put back to what it was in XXXX. 4.92 %. We can then afford to pay the minimum payments. We can not at 29.40 %. 

Thank You.

Company response to consumer: Closed with explanation