Consumer complaint received 2025-05-05 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Closing your account — Company closed your account
Company: CAPITAL ONE FINANCIAL CORPORATION
State: CA

Complaint narrative:
b'Capital One abruptly closed my credit card account number XXXX XXXX XXXX XXXX without any prior warning or clear explanation. I received a mailed letter dated XXXX XXXX XXXX, stating the account was closed due to activity inconsistent with typical customer account usage. No specific details were provided. The letter did not allege fraud, nor did it give me a chance to respond, correct the issue, or redeem my earned rewards.\nWhen I logged into my Capital One account online, I found that the closure letter was categorized internally as a Fraud Letter, despite no fraud being referenced in the correspondence. Ive attached both the closure letter and a screenshot showing the Fraud label from their website.\nI contacted Capital One by phone, where I was told that the issue may have been due to a returned payment. If true, this is a minor billing issuenot fraudand should have been handled with notice, not a sudden account closure and forfeiture of rewards. Capital One has provided no written explanation and continues to deny me access to my rewards, which were lawfully earned through normal use.\nI originally opened this credit card while residing in New York. Under New York General Business Law  520-e, issuers operating in NY are required to provide 45-day notice before modifying or terminating a rewards program, and a 90-day grace period to redeem points. I received neither. If Capital One claims I am not covered due to my current California address, they have not provided a legal rationale.\nIn addition, Capital Ones actions appear to contradict the CFPBs own 2024 guidance (Circular 2024-07), which warns card issuers against surprise forfeitures of earned rewards without transparency or due process. The CFPB specifically stated such practices may constitute unfair or deceptive acts or practices under the Consumer Financial Protection Act (12 U.S.C.  5536) and a potential violation of TILA. Capital Ones conduct aligns with the types of violations described in this guidance.\nI am also raising serious concern under the Equal Credit Opportunity Act (ECOA). The phrase used by Capital One  activity inconsistent with typical customer account usage  is vague, subjective, and inherently discriminatory. It assumes that typical usage is a valid standard by which to judge all customers equally, without recognizing that millions of Americansespecially XXXX XXXX individuals, or those with XXXX lifestylesdo not and should not be expected to conform to such a standard.\nBy defining legitimacy in terms of typical behavior, Capital One effectively penalizes people for being atypical, even when their conduct is lawful. My own spending patterns  including international transactions, remittances, or purchases at XXXX establishments  may deviate from what a majority customer base does, but that does not make them suspicious or invalid. If account closures or fraud flags are disproportionately triggered by identity-linked behavior, then the policy amounts to profiling. Capital One has provided no indication that it has safeguards in place to prevent this.\nLastly, if the account has been reported to credit bureaus as closed due to fraud or risk, this would be false and harmful, violating the Fair Credit Reporting Act (FCRA). I have requested clarification but received none.'

Company response to consumer: Closed with explanation