Cap One - interest hike

[Wilma Shoozfit]

In January 09 I received an "opt out" letter from Cap One - Basically - option 1 continuing using your card and the interest rate would go up or option 2 stop using your card and pay off the balance either in one go or by continuing monthly payment until the balance was paid - then to phone up and close the account. Instructions were to phone them to tell them if you wanted Opt 2, but I sent my request in writing as by then I'd discovered CAG! The interest rate wasn't increased and my payments were made by DD

 

In May this year I went on line - (e-statements) to find they had hoiked up the interest rate by 6% pa. Obviously I queried this as I'd stuck to the agreement of the January 09 letter - non use of card, monthly payments by DD.

 

Cap One claim that a further "opt out" letter was sent to me at the beginning of this year and as I had not replied the interest rate was increased. I don't recollect recieving any letter, and as there was no mention of the "opt out" being renewable every year I wasn't expecting anything! Nor did I get a replacement card when the old one expired in December 09.

 

I have written to Cap sending them a copy of their Janaury 09 letter asking them to reduce the interest rate and refund me the extra interest they have taken.

 

They have responded by saying they will need 4 weeks to investigate - and they will write to me at the end of that time to update me on their progress. In the meantime they continue to apply the higher interest rate.

 

Any suggestions please who to write to to get this sorted asap -

 

Cheers Wils

PS where's the spell check?

[locutus]

spellcheck looks like this now :- (far right on quick reply, on the left on Go Advanced and not there on Edit (I've told webby) it's a different Icon than usual and took me a while to find it!)

 

How much are we talking here? Probably be financially viable for them to settle rather than it go to the FOS or court.

[Wilma Shoozfit]

Thanks for coming back Locutus - really appreciate it.

 

We're not talking megabucks maybe £5-6/month.

 

I've just started paying extra off per month on top of the min payment direct debit to try and get it cleared - so far it's taken nearly 3 years to pay of 300.00 off the balance, if I stick to min payments I'll be still paying my 1650 off when I'm 92.

 

It would be handy to know who's arm to twist to get them to stick to the 09 letters terms to stop them piling it up the interest - I'd prefer that extra fiver a month to come off the debt and not line their over stuffed coffers.

 

Wils

[Wilma Shoozfit]

Good news small victory - Cap one wrote and will refund my interest back dated to April - works out about £21.00 - not a lot - but it's 21.00 off what I owe them and 21.00 less to pay.

 

However.... they say that they didn't apply the lower rate interest freeze back in 2009 because I wrote to take option 2 instead of telephoning. Said I needed to phone so they could discuss it with me - Utter tosh - !!!

 

I'll have to dig out their reply from 2009 to see if they mentioned that they wouldn't accept unless I phoned - and I missed it. - if they failed to point that out I'll be going back for the refund of overpaid interest for last year as well.

 

Every little helps:)

 

Wils

[Wilma Shoozfit]

Quick update -

I checked my Jan 2009 letter, in it I told them I was going for "Option 2" that I would destroy my card and continue paying by direct debit - I also said how dissappointed I was that they were continually increasing the interest rate and asked them for a history of the interest increases they had applied to this account.

 

They responded by telling me I would need to send them £10.00 for my data - but there was no mention that they couldn't accept my opt out choice by post. As the option was available until the end of February, at this point I still had time to telephone them to take up this offer had I known they wouldn't accept written requests.

 

Another letter has gone back to them pointing out the error of their ways, asking what parts of the disclaimer they have omitted from their original letter, quoting the "plain language" section f the UTCCR 1999. I also pointed out that they did not issue a new card when the old one expired in December 09, which would have been part of the 09 Opt out option they say they haven't accepted.

 

I didn't bother sending the £10.00 - there's no other issue with this account - no charges to reclaim (at least not for the past 10 years) and no PPI - just the crippling interest.

 

I've asked them to reduce the interest rate back to the 09 figure and refund me the difference. - Let's see what happens.

 

Cheers Wils.

[Wilma Shoozfit]

Quick update - Success!!

 

Cap one have agreed to honour the 2009 interest rate - and have refunded me just under 190.00 !!

 

Although They won't actually lower the interest rate shown on my statement (I'm sure there must be a devious reason for this) - they take interest at the inflated rate and then refund me the difference every month - sounds daft dosesn't it? but it's 11.00 a month of the balance so nice one Capital One.

 

I'll just have to keep an eye next year when they send the letters out again about freezing interest.

 

Cheers Wils

[locutus]

Congrats