Consumer complaint received 2025-07-02 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Advertising and marketing, including promotional offers — Didn't receive advertised or promotional terms
Company: CAPITAL ONE FINANCIAL CORPORATION
State: CA

Complaint narrative:
I received a promotional sign-up offer from Capital One that stated, " earn a {$250.00} cash bonus once you spend {$500.00} on purchases within the first 3 months from account opening. '' I applied for Capital One 's SAVOR card based on Capital One 's promised {$250.00} sign-up bonus and cash back rewards offer. On XX/XX/year>, Capital One sent me an email advising me that the requirements for the sign-up bonus were satisfied and that my " {$250.00} new cardmember bonus is here. '' Banks are required to report sign-up bonuses as interest income to the IRS using Form 1099-INT. In other words, I am required to pay tax on the {$250.00} sign-up bonus, and yet Capital One is withholding my access to these funds in violation of the law. I currently have a cash rewards balance of {$360.00}. Credit card issuers violate federal law through conduct that otherwise inhibits consumers from obtaining or redeeming promised rewards. Credit card issuers are responsible for ensuring consumers can redeem their earned rewards and resolving any issues that prevent redemption. Moreover, credit card issuers can not engage in practices hindering access to rewards based on vague terms, or due to actions outside the consumer 's control ( e.g., unilateral account restrictions ). Federal consumer financial protection laws apply to rewards programs offered in connection with credit cards, and Capital One should take care to ensure that their conduct with respect to the administration of credit card rewards programs conforms with the law. Capital One 's customer service was unhelpful and unable to resolve rewards problems. I called Capital One, and nobody would give me any information despite my repeated attempts. The only information they provided was " my account was restricted. '' Such conduct by Capital One is not only unreasonable but also places an undue burden on me as a customer. The inability to access my rewards in a timely manner significantly hampers my ability to utilize the benefits of my rewards effectively. Capital One 's conduct is a theft of rewards that were based on valid purchases. It is not only unethical, but unlawful for Capital One to take away my reward dollars that I earned charging their card instead of an alternative credit card I could have used. I would also like to note the double standard of still needing to make payments on the outstanding debt, while being blocked from redeeming previously earned rewards benefits ( that could be used to pay down my balance ). If Capital One wishes to restrict my ability to use their Credit Card, that is within their rights to do so. However, the sign-up bonus and cash-back rewards earned are mine, and it is illegal for them to try to deny me of it. Capital One has failed to deliver on its promised sign-up bonus and cash-back rewards, and is arbitrarily erecting barriers to make it difficult to redeem rewards. In order to resolve this matter and prevent further escalation, I am asking, yet again, for Capital One to either send me a check for the balance of my reward earnings, or apply it towards my outstanding balance. Please advise...

Company response to consumer: Closed with explanation