Consumer complaint received 2024-10-19 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:
In XXXX of XXXX, I had multiple ( XXXX ) credit card accounts closed by Capital One. The accounts were closed due to multiple returned payments ; however, Capital One had previously, for years, provided an option to pay balances immediately using a debit card. This practice stopped in mid to late XXXX ( XXXX timeframe ). I personally contacted Capital One at this time and was informed that they no longer accepted any other form of payment aside from direct ACH from a checking account, which is not immediate and can take days to process depending on normal business hours and holidays. This change directly resulted in the loss of my ability to immediately pay outstanding debts with the instantaneous debit payment method that I had utilized for YEARS previously, which had resulted in an improved credit rating, and the ability to quickly pay down balances. Since two of the three Capital One cards were my oldest credit card accounts, they supported my credit history as my longest open accounts post-bankruptcy. After XX/XX/XXXX, and no longer being able to pay debts immediately with a debit card due to a change in Capital One policy, scheduled payments were not always processed immediately and at times resulted in a returned payment. As a result of only being allowed to submit ACH payments rather than immediate debit payments, my ability to fulfill these transactions were hindered. Additionally, although some payments were returned ( as they were more than the minimum required payment ), very importantly, I was still never late on any minimum required monthly payment for these cards. 

Regardless, without warning, Capital One abruptly closed all of my credit accounts, hindering my credit score and credit access. Insultingly, their prohibition on debit card payments seemed to have only been enforced during this difficult time from late XXXX until early XXXX, as it now seems that they are accepting debit card payments again. However, their 9 month hiatus directly negatively affected my ability to timely fulfill debt payments, and I was personally negatively affected by the impact of their decision to close my credit accounts, again without warning, after several years of a balanced relationship. 

My chief concern is that my ability to pay a debt immediately, a process that I was accustomed to for years thanks to the flexibility of their cards and debit payment system, was suddenly removed. And almost simultaneously, as all three of my credit accounts were closed by creditor without warning, XXXX of XXXX, the ability to pay via debit card suddenly reappeared. 

At the very least, the closing of the accounts after years of positive history shows a fear by the creditor, although the creditor directly removed the simplest form of payment and debt settlement. Only to months later, after filtering out customers such as myself who were credit challenged and paid religiously via debit card, bring back the simple, accessible payment method that I had used for years prior. 

It seems intentional, and it seems unfair. I would never have defaulted on any payment if it were directly deducted from my debit card, as it had been for years previously. Now, my credit rating has again been impacted, thanks to suddenly having to the door slammed in my face by a company that I once thought was an ally to extend credit to someone who was emerging from bankruptcy. They actually helped me get back on to my feet and re-establish my credit. Except for the fact that 9 years and 6 months in, they suddenly no longer had an interest in my money or business. 

I would appreciate an inquiry and explanation into Capital Ones brief hiatus of debit payments, their abrupt cancellation of extended credit, and the reemergence of the ability to pay via debit card. Im sure that they have covered their rear ends with pages of legalese that protects their rights to do so, but they have unfairly alienated groups of people by prohibiting them from fulfilling making payments in a traditional manner that was well established. 

I look forward to a response CFPB, as well as Capital One. At the very least, I would like my positive credit history and longevity accurately reflected within current credit reports. The unexpected closing of these accounts has severely impacted my length of credit history, and now negatively affects my ability to purchase a home, which was a huge possibility 6 months ago. 

Thank you.

Company response to consumer: Closed with explanation