Consumer complaint received 2024-01-23
Product: Credit card — General-purpose credit card or charge card
Issue: Trouble using your card — Can't use card to make purchases
Company: CAPITAL ONE FINANCIAL CORPORATION (CA)

Around XX/XX/XXXX, Capital One solicited us to open a Spark Business card with no preset spending limit. At the time we were using approximately four credit cards to operate our business. It made sense to consolidate all our spending to one credit card as we always paid the balance before the due date on all of our cards. The idea of everything being on one statement and one online account was appealing. We applied and were accepted. 

After that, our highest single purchase was approximately {$13000.00} and our highest balance was somewhere in the {$35000.00} range. We have always paid before the due date ; there was one instance where I forgot and paid the balance the next day and the late charges were waived. That is the only incident. 

Approximately XX/XX/XXXX ( 15 months into our relationship with CapOne ) our purchases began to be declined by CapOne. When I called I was told a payment needed to be made in the middle of the statement cycle. I was further told the " system '' would not allow further purchases until a payment was received, but upon asking on what amount was required I was told they " did not know. '' The " system '' only showed a payment was required. 

I made a {$20.00} payment on XX/XX/XXXX and three days later we were able to finish our month with purchases necessary for our business operations. Therefore, I dismissed the incident as a one-time glitch in their system. 

In XX/XX/XXXX ( two months after the initial interruption ) our purchases were again declined. When I called I was told that the system was not allowing purchases because we had to pay down our balance. A supervisor got on the line and explained to me how purchasing power was used at CapOne and that I had exceeded my purchasing power. I explained the {$20.00} payment in XXXX and that his explanation of purchasing power did not apply to me because in XXXX it was clearly a " system '' error, otherwise I would not have been able to finish my XXXX cycle of purchases without making a significant payment. 

Since XX/XX/XXXX we have been experiencing this problem every month where our purchases are denied and our ability to function as a small business is being suffocated. 

In summary, CapOne solicited us and charged us an annual fee for the Spark Business Card with no pre-set spending limit. If we were consistently late with our payments we could definitely understand the need for payments mid cycle, however, this is not the case. For 15 months CapOne honored their no pre-set spending limit and we honored our full payment by the due date. With no warning whatsoever CapOne has chosen to " choke us out '' and every time we call we get the runaround. We as a small business merged all of our spending power to the CapOne Spark Business Card and now we find ourselves powerless and at the mercy of CapOne 's " system '' for the survival our business. We have looked into alternative credit lines but in today 's credit environment we have not been successful because we have put all of our resources into the Spark Business Card. 

In contrast and as an example, six month ago, XXXX XXXX XX/XX/XXXXnotified us of a change in their products and operations related to products we were using. They gave us approximately three-months notice prior to these changes, whereas CapOne gives absolutely no notice and when we call, their representatives are limited in the information they can share and with no one to be held accountable for this drastic change in procedure. We are not in the finance business, we are the in the construction business, but we know Capital One is not operating in a responsible and good faith manner. Our company should be able to survive but we have calculated our losses at approximately {$900.00} per month having to use alternative purchasing methods and having to reconcile purchases from multiple sources.