Consumer complaint received 2025-08-14 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Problem with rewards from credit card
Company: CAPITAL ONE FINANCIAL CORPORATION
State: NY

Complaint narrative:
In XX/XX/XXXX, Capital One abruptly closed one personal credit card and two business credit cards without any warning or specific justification. At the time of closure, I had legitimately earned over {$10000.00} in rewards through multiple categories that I am being inhibited from redeeming : {$8000.00} in cash back bonuses through a promotional spending program ( four completed {$500000.00} spending cycles ) {$2400.00} in rewards from charges totaling {$120000.00} that were authorized before account closure but captured after Nearly {$2000.00} additional value from being 98.5 % of the way to earning the fifth {$2000.00} spending bonus When they closed the rewards accounts on XX/XX/XXXX, only the previously vested rewards were forcibly credited to the statement balances of the credit cards, while the substantial future rewards I had legitimately earned were threatened with forfeiture. There may be additional unvested rewards that I am unable to retrieve due to Capital One 's limited data access and unwillingness to make transaction history available to me. 

Capital One 's XXXX XXXX card offered {$2000.00} cash back bonuses for every {$500000.00} spent by XX/XX/XXXX. I completed four full spending cycles, earning {$8000.00} in bonuses. Additionally, I had spent {$490000.00} toward the fifth {$500000.00} threshold ( 98.5 % complete ), representing nearly {$2000.00} in additional earned value. 
Throughout my participation, Capital One sent a series of encouraging emails that explicitly stated rewards were " earned '' and " set aside '' : XX/XX/XXXX : " Congratulations on earning your {$2000.00} bonus for spending $ XXXX 're setting it aside for your cardholder anniversary. That means you can expect {$2000.00} in rewards when you celebrate your one-year anniversary as a cardholder. '' XX/XX/XXXX : " You earned a {$2000.00} bonus! Congratulations, { { name } }, on earning your {$2000.00} bonuswe 're setting it aside for your cardholder anniversary. That means you can expect {$4000.00} in rewards when you celebrate your one-year anniversary as a cardholder. '' XX/XX/XXXX : " You earned a {$2000.00} bonus! Congratulations, { { name } }, on earning your {$2000.00} bonuswe 're setting it aside for your cardholder anniversary. That means you can expect {$6000.00} in rewards when you celebrate your one-year anniversary as a cardholder. '' XX/XX/XXXX : " You earned a {$2000.00} bonus! Congratulations, { { name } }, on earning your {$2000.00} bonuswe 're setting it aside for your cardholder anniversary. That means you can expect {$8000.00} in rewards when you celebrate your one-year anniversary as a cardholder. '' Capital One also sent progress updates actively encouraging continued spending : XX/XX/XXXX : " You've spent {>= $1,000,000} as of XX/XX/XXXX, and have {$290000.00} to spend by XX/XX/XXXX, to reach your next bonus. '' XX/XX/XXXX : " Move your business forward with XXXX XXXX XXXX. You've spent {>= $1,000,000} as of XX/XX/XXXX, and have {$410000.00} to spend by XX/XX/XXXX, to reach your next bonus. '' These communications consistently used definitive language stating bonuses were " earned '', " set aside, '' and concluding " you can expect $ x, xxx in rewards '' creating reasonable expectations that Capital One would honor these commitments through the promised XX/XX/XXXX anniversary date. 

When I contacted Capital One about the closures, representatives provided only a vague explanation : " observed activity on one or more accounts that's inconsistent with typical customer account usage. '' No specific terms of the cardholder agreement were cited as violated, no concrete behavior was identified, and multiple representatives confirmed I had not violated any disclosed terms or conditions. 
The closure decision was described as " final and not reversible, '' made by " business decision '' without human review specifics. Representatives could not explain what constituted " typical '' versus " atypical '' usage, making the justification pre-textually valid for closing every single Capital One customer 's accounts. 

During multiple phone calls following the XX/XX/XXXX closures, Capital One representatives gave contradictory information about my earned rewards : Some stated rewards would be automatically credited to statement balances Others said checks would be mailed within 1-2 billing cycles. 

Several representatives could not confirm whether earned bonuses would be honored When asked about process for making sure the rewards and account closures were compliant with regulations, representatives acknowledged Capital One " strives to be compliant '' but could not commit to honoring legitimately earned rewards. 

One representative ( employee ID XXXX ) confirmed that if my account remained " in good standing, '' the earned bonuses should be paid, but could not provide written confirmation or explain what additional undisclosed criteria might affect payment. I was promised a response to an escalation about this after 10 business days ( before XX/XX/XXXX ). However, after having received no communications from them regarding this, I called back on XX/XX/XXXX. I spoke to another rep ( employee ID XXXX ) who informed me the rewards I earned are forfeited and that this is a final decision. 


This situation demonstrates classic unfair, deceptive, and abusive practices that other consumers should watch for : Unfair : Closing accounts strategically before large reward payouts, causing substantial financial harm that consumers can not reasonably avoid once rewards are " earned. '' Deceptive : Marketing rewards as " earned '' and " set aside '' while concealing plans for account closure. Using vague closure justifications that are so broad and undefined the statement could literally apply to any and every Capital One customer. 

Abusive : Encouraging continued spending through progress updates and congratulatory emails, building consumer trust and reliance, then closing accounts just before anniversary dates when bonuses become payable. Restricting access to transaction history after closure, preventing customers from calculating their full earned rewards. 

XXXX XXXX : The CFPB recently fined XXXX  XXXX XXXX {$250.00} million for similar practices involving withholding promised credit card rewards. The CFPB 's XX/XX/XXXX guidance specifically identifies " bait-and-switch '' reward practices as violations. Capital One 's conduct follows the same pattern : promise rewards, encourage spending, then find pretextual reasons to avoid payment. 

XXXX of Events XXXX : Opened personal and business accounts and began participating in rewards programs. 
XX/XX/XXXX : Email confirming first {$2000.00} bonus " earned '' and they're " setting it aside for your cardholder anniversary ''. 
XX/XX/XXXX : Email confirming second bonus, stating " you can expect {$4000.00} in rewards when you celebrate your one-year anniversary '' XX/XX/XXXX : Progress email encouraging continued spending : " You've spent {>= $1,000,000} ... and have {$290000.00} to spend by XX/XX/XXXX, to reach your next bonus ''. 
XX/XX/XXXX : Email confirming third bonus, stating " you can expect {$6000.00} in rewards when you celebrate your one-year anniversary ''. 
XX/XX/XXXX : Email confirming fourth bonus, stating " you can expect {$8000.00} in rewards when you celebrate your one-year anniversary ''. 
XX/XX/XXXX : Final progress email encouraging spending : " You've spent {>= $1,000,000} ... and have {$410000.00} to spend by XX/XX/XXXX, to reach your next bonus ''. 
July 18-21, 2025 : All three accounts suddenly closed without warning Following account closures : Multiple hours-long phone calls with inconsistent responses about reward payment. 
XX/XX/XXXX : Received official correspondence in mail about justification for account closure. 
XX/XX/XXXX : Representative ( XXXX XXXX ) informs me Capital One has forfeited my earned rewards set aside for me as well as those captured after the account was closed. 
XX/XX/XXXX : Original anniversary date when {$8000.00} in confirmed " earned '' bonuses were supposed to be paid. 

Consumer Warning Signs Other consumers should be alert to these red flags : Vague account closure reasons that don't cite specific policy violations. 
Marketing language promising rewards are " earned '' or " set aside ''. 
Timing of closures just before large reward payouts or anniversary dates. 
Representatives unable to provide clear, consistent information about earned benefits. 
Deflection when asked about regulatory compliance ( UDAAP standards ). 
Simultaneous closure of multiple accounts ( both personal and business ) suggesting systematic rather than account-specific issues. 
Restricted access to transaction history and account data after closure, preventing customers from calculating their full earned rewards. 

This case demonstrates how financial institutions can potentially manipulate rewards programs and information asymmetry to avoid paying legitimately earned benefits to make bank 's debt obligations ( consumer 's benefit obligations ) disappear without actually having identified any policy violations.

Company response to consumer: Closed with explanation