Re: more Capital One nightmares

Posted by Drew (24.59.27.46) on November 03, 2003 at 22:43:12:

In Reply to: Re: more Capital One nightmares posted by seonaidh on November 03, 2003 at 22:04:19:

His take home pay after taxes. These companies out there are terrible. If they are not making enough interest off you because you keep your balance low, they lower your credit limit so you go over the next time you use the card and they don't tell you about it just so they can charge you a late fee, and then put you in default so they can add more fees to it.

It is a common tactic of Cap ONe and other cards. If you have a $1000 limit and you are at $650, they lower your credit limit without telling you so that your new limit is now $700 so if you use your card that month it puts you over. Why do they do that? They are not making money and they want to charge you fees. In addition, if you read your contract, they will usually have in real tiny print somewhere in the middle of the paragraph that you ARE IN DEFAULT if you go over the credit limit. If you are technically in default after going over your credit limit, they reserve the right to assign your account to collections or to add legal fees to it. Geez.

I found such a clause in our MBNA account. Stay well below your credit limit.

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