Consumer complaint received 2017-01-18
Product: Credit card — 
Issue: Other fee — 
Company: CAPITAL ONE FINANCIAL CORPORATION (PA)

To whom it may concern : For over XXXX years now I have had a secured " Platinum XXXX '' from CapitalOne. I originally applied for this card since it was solicited via mail as a good way to build or rebuild credit. As a young person, adding more cards to my portfolio made sense. 

That said, the card has been unused for over XXXX years. When I went online to review my accounts I saw I was charged a {$30.00} annual fee. While I do not have an object to annual fees as a rule, I was annoyed that CapitalOne now offers the same product, at no annual fee. 

When I called CapitalOne to transfer my card type and/or to waive the fee, they refused : stating " bank regulations '' and other superficial reasons. Ultimately, I believe that the agent and his supervisor where ultimately powerless to help me. 

What I find truly disturbing is the institutional policy. Despite CapitalOne no longer charging an annual fee across any of their secured lines, they continue to do so on legacy accounts, and refuse to offer transfers that they regularly provide to other cardholders ( even for myself on a unsecured line ). 

What this means, practically speaking, is that the people who need financial help the most, those whom are working to rebuild their credit, are left with XXXX options : ( a ) close the account and -- this is the important part -- suffer the associated credit score hit by allowing the card to become inactive/closed or, XXXX b ) continue to pay a {$30.00} annual fee as ransom, even if the service is unused. 

Realistically, based on available simulations, a person could be looking at accepting a substantial XXXX point drop in their credit score if this card was used for its intended purpose ( e.g. rebuilding credit ) as a closure of an old card affects the " average age of open accounts '' a highly-weighted scoring metric. 

It is my belief that this decision by CapitalOne to disallow secured accounts to be updated to the new terms is an intentional act designed to reap profits from the most vulnerable. Not only that, but I feel that it distinctly qualifies as a Clear Unfair, Deceptive, or Abusive Acts and Practices ( UDAAP ) under XXXX U.S.C. XXXX XXXX b ). 

From a moralistic prospective, the notion that customers should remained locked in a position where they are forced to continue to pay CapitalOne fees or face severe credit repercussions is obscene. To be clear, if this was a lucrative rewards card, this argument would be invalid. 

While my financial situation is excellent, even myself, whom has well over $ XXXX in unsecured revolving credit, is looking at a substantial negative credit hit by closing this otherwise unremarkable account. 

I am transmitting this letter on behalf of other customer whom likely lack the knowledge or means to raise this complaint. I believe this policy, intentional or otherwise, unfairly hurts the most vulnerable consumers, and ultimately is not in CapitalOne 's best interests. 

Beyond the reputational damage, the practice of refusing to update the card -- or allow consumers to do so -- is petty and antithetical to the " consumer friendly '' and " helpful '' atmosphere CapitalOne attempts to promote. 

I would like to request your assistance in this matter to advocate for a change in policy as well as to see the necessary changes effected onto my account.