Just received a notice from CapitalOne that they are doubling the interest rate on

[Skidmore]

a card I have held for over two decades. Never carried a balance for more than a couple of months on it, never missed a payment and paid multiple payments at one time, and sometimes go literally many months without using. Guess it's my turn to pay for someone else's carelessness. Sorry to sound so unforgiving but this really is irking me now.

[sandnsea]

1. lol, so much for caring about others

This place just cracks me up. What a bunch of hypocrites. Hits you in the pocket and suddenly you sound just like a Republican.

[WVRICK13]

35. WHAT!

Caring about others like Capital One. Am I missing something here?

[Raven]

2. These companies will be next to fail. I'm thinking of setting my

credit cards aside, not cancelling them, and using only my debit card. Any thoughts on that?

[GoesTo11]

6. You've got it backwards

If they fail, you would lose the balance on your debit card. But you can't lose the balance on your credit card, you only wish you could.

[Raven]

8. I have my money in a community bank and that's where my debit

card is. Wouldn't that be safe?

[GoesTo11]

12. I suppose that would be as safe as the bank if the debit card goes straight to your account

Community banks aren't immune from failure. If they are well run, they're probably fine, but if they were caught up in poor investments, you hear every week about some going under.

But I don't see a risk in holding credit cards as long as you pay off every month, because you are the one who owes the money.

It's probably a good idea for most people to have one debit card just for convenience in case the credit card industry goes down. It could go very quickly, if you realize how high a percentage of cards are one way or another run by Citi, Chase or Bank of America.

[billybob537]

18. First off virtually all deposits are insured

up to $250'000.

[GoesTo11]

20. That's right.

I wonder if there are debit cards (not with bank accounts) that don't count as deposits and aren't insured. I think if the company went under, those would be sort of like gift cards with stores that go bankrupt.

[Kindigger]

21. Don't know about that anymore

Last night on NBC Nightly News they said they were making they banks buy ____? because the FDIC has no money.

Just googled and there's nothing there, but I know what I heard. Took note of it because my mom said she was now keeping her money in the safe at home, rather than in the bank.

Anyone know the word I'm looking for up there?

[billybob537]

23. If they weren't there would be a run on the banks.

That's why the upped it, it had been $100,000

[Demobrat]

25. Credit cards are safer than debit cards in some ways.

If your debit card is lost/stolen and used the money comes out of your account and you have to wait to get it back. Some banks claim to get you your money back in 24 hours, but I don't automatically believe everything a bank says. If the same thing happens with a credit card you can just dispute the charges and you won't have to pay. I use my CC like a debit card, for safety. It's hooked up to my checking account and I transfer the money over to pay it as soon as I made a purchase, sometimes before the charge even shows up on the statement. If you handle it that way it doesn't matter what the interest rate is. Just something to think about.

[Kansas Wyatt]

33. With them jacking up rates on all, or cancel at the current rate, they are trying to fail.

Why?

[Happyhippychick]

3. Just tell them that they can either keep your old interest or you will cancel. They'll cave,

[Skidmore]

24. That's the offer they made me in the notice...

take the change in interest rate or decline and lose your card.

[Happyhippychick]

27. They want a higher interest rate but they want to keep you as a customer MORE. They are bluffing,

trust me I have been there/done several times. Not one time have I ever been told "okay, bye!". They have always caved, they will cave with you.

[SteelPenguin]

28. Not these days

We've had two companies do it to our cards (Capital One, and Citibank). Both raised the rates by over 10% points (and we have good credit, with no late payments, etc). We called up and asked to have it reduced and they said that our options were a) accept the new rate, or b) we'll go back to our original rate, but the card will be canceled when it expires and they won't renew the account. We chose b) and we're paying it off and going credit card free...

But yeah in the old days you could crank them back....not anymore.

[Happyhippychick]

30. That's unfortunate. I would have done the same thing as you.

[graywarrior]

4. They want to dump you because you go periods of time without using it

Besides...you're a deadbeat according to them because you pay on time.

[Traveling_Home]

9. Egggzactly Right!!

[Arby]

5. Cancel the card

Or call C1 and threaten to cancel. Usually when you call, they will back off and continue with your current rate. If they don't, cancel...

[TwilightGardener]

7. Same here. My interest rate went up 10 points, no reason for it. I hate Crapitol One.

[ayeshahaqqiqa]

10. They stopped my card

because I hadn't used it in so long. I think Obama plans to stop shenanigans like hiking rates--so maybe they are trying to get in last licks before it is too late. But I'd write and protest (if you really want to keep the card), and see if they will back down. Personally, I said "good riddance" when I got my notice.

[Pharaoh]

11. They are criminals

The whole Capitalist system is a giant pyramid scheme.

Ironic there is a pyramid on the dollar bill :freak:

[asjr]

13. Credit card companies would have made

Al Capone green with envy.

[Gman]

14. It takes two to tango

We all know there are people that will flat out take advantage of the system screwing everyone else and not thinking twice about it, but then these credit card companies did things like sending unsolicited credit cards to college kids knowing that people are most loyal to the company of the first credit card they ever had. The companies thought 30% interest rates would more than pay for their uncollectables.

[L0oniX]

15. Same here. Went from 6.41 to 15.99 ...oh but they can afford to bombard the tv with ads.

[billybob537]

16. First join a credit union!

Then get the card from the credit union, then get rid of the rest.

[elocs]

17. Cap One just raised my rate 10.something% + prime which puts it at about 14%.

Last fall it was 7.75% and they lowered it to 6.67% and bizarrely my last billing was for 4.40%. "Paying for someone else's carelessness" though is exactly the same objection that conservatives have to any kind of mortgage bailout. "Why should I pay for someone else's mistake, or why should they get help when I always have paid?" I guess now we can understand how they feel. We may not agree, but we can understand.

[itubeutubewealltub]

19. Hey, I feel your pain...My mother is the same way about paying on time

I never got a card because I didn't want that temptation of buying something before I had the dough. And when debit cards came along, it became easy to do things that one does with the credit cards.

Don't listen to those who will call you a meanie for having to be punished for others' irresponsibility. They are classic enablers and should join Codependents Anonymous ASAP.

[DemoTex]

22. It's your turn to pay for Capitol One's carelessness.

I know of no other bank that foisted so many credit cards on so many un-credit-worthy people than Capitol One. In 2003, or so, a Capitol One telemarketer called for Sirius T______, my dog. He had been pre-approved for a Capitol One credit card with a credit limit of $10,000. The telemarketer shared a laugh with me when I informed him that his company had approved a dog for a credit card (I subscribe to magazines in my dogs' names .. interesting what mailing lists they show up on!).

[librechik]

26. Got that CapOne letter on Thursday. Got my tax return on Friday. CapOne is history.

After 12 years.

[Thickasabrick]

29. Ok....maybe this is a dumb question but I have to ask. Why are

so many people closing these accounts who have a really long history but never carry a balance? If you never have a balance, the interest rate could be 80% but it wouldn't matter if you pay it off every month. By closing them, you hurt your FICO score. I don't care what the interest rate is, if I never carry over a balance I'm going to keep that in my credit line history.

[lpbk2713]

31. I have a Visa® card through my credit union.

I've had it for twenty-five years or more. They recently notified me that their APR will increase from 12.5% to 15.5%. I usually pay it off every month so that there won't be a balance carried forward, so it won't have that much of an impact on me.

[kas125]

32. We got the notice yesterday. Ours went from 5.01 to 15.99. And

it says in the letter that the rate can change MONTHLY. Ugh, no more CapOne for us!

[Peace Patriot]

34. I know President Obama has a full plate (to say the least) but CREDIT CARD REFORM

is desperately needed, and absolutely critical to economic recovery.

What they did to you, Skidmore, should be ILLEGAL. It is most certainly immoral. It's usury! Some kind of 'christian' country this is, huh? You gotta laugh at that. The country of "Jesus, the Greedy." He don't "save" you--he loots your Savings & Loan. He don't love you, ceptin yer a millionaire and a celebrity. And you don't get no jewels on your crown in Hebbin, ceptin ya pay 30% interest on 'em.

I could go on and on about the Christians and the Corporates.

But it's a side issue, really. How we deal with this in our secular democracy is by REGULATION. And that's what is desperately needed NOW.