Consumer complaint received 2025-06-08 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Advertising and marketing, including promotional offers — Confusing or misleading advertising about the credit card
Company: CAPITAL ONE FINANCIAL CORPORATION
State: NY

Complaint narrative:
I am filing this formal complaint against Capital One for engaging in unfair and deceptive business practices, violating the Fair Credit Reporting Act ( FCRA ), and breaching the implied terms of our agreement. 

What Happened : On XX/XX/year> I was pre-approved by Capital One for a {$2000.00} credit limit, with the explicit claim that proceeding through the application would not affect my credit report unless I was approved. I proceeded based on that assurance and was approved. 

After receiving the card, I made approximately {$450.00} in purchases, then attempted to use a cash advance feature. I contacted Capital One customer service to set up a PIN, which was approved and confirmed. 

Immediately after attempting the cash advance, my account was frozen, and I was told it was due to the cash advance request. I was asked to verify my identity, submit the last XXXX months of bank statements as proof of income, and wait 7-10 business days which I did XXXX separate times. Despite complying with their request, my account remains restricted, and I was told that my drivers license has authenticated my identification but my income does not meet the requirements.

The Problem : 1.There were no stated income requirements during the pre-approval or application process. If income was a factor, the account should never have been opened in the first place.

2.I now have a hard inquiry affecting my credit due to a card I no longer have access to.

3.I am still financially liable for charges on an account I can not use or manage, which is both unethical and punitive.

4.I relied on the availability of the funds to meet obligations and experienced financial loss and stress due to Capital Ones sudden freeze and refusal to restore access.

5. There is also a hardship program for Capital One credit card holders if they lose a job or experience a loss of employment. To close or restrict my account because of income also breaches that agreement. 

Legal Violations : 1. Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681m and 1681i Capital One initiated a hard inquiry and opened an account based on a pre-approval process that was misleading. The sudden restriction, without full verification or opportunity to cure, has led to credit damage without due process.

2. Federal Trade Commission Act 15 U.S.C. 45 ( a ) Capital Ones
actions constitute unfair or deceptive acts or practices by misrepresenting the conditions of approval and failing to disclose critical factors like income verification after granting approval and access.

3. Breach of Contract ( State Law ) Capital One breached the implied covenant of good faith and fair dealing by arbitrarily freezing my account after activation and use, despite approving the application and allowing usage. There was no indication in the user agreement or onboarding process that access could be revoked due to unstated income thresholds. 

I have attached a copy of the approval letter from Capital One.

Company response to consumer: Closed with explanation