Hi Ben!
I had missed a payment last fall in October, due to a tough month personally, which had caused my small Capitol One card ($300) to go overlimit due to finance charges. Since then, the fees have been mounting and my small monthly payments ($30-$40) were barely covering the fees. As you can imagine, my balance continued to balloon out of control over the next three months.
In order to get myself out of this month, I started doing my research, including becoming an avid Consumerist reader, and decided that in order to start making snowball payments (using the awesome snowball debt reduction spreadsheet!) on all credit card debt, I had to get these fees under control. I tried calling customer service several times, to no avail, other than to offer waiving the check by phone fee - nice but not the issue. I finally emailed Capitol One's CEO directly (rich.fairbank@capitolone.com) and received a call the next day (within 12 hours of my email!) from an executive customer service representative.
Unlike other customer service reps, she was very friendly and eager to help and was very understanding of how this situation had happened. She was able to credit back all fees on my account since October (almost $300), which puts me back under my credit limit! She also lowered my interest rate (down from 18% back to 7.56%) to help make sure my monthly payments go further!
I was absolutely blown away with how easy it was to resolve this issue once I sent the email. The best part was talking to someone who didn't make me feel like a criminal for getting behind and someone who was genuinely interested in helping. Capitol One's exemplary dedication has made them the one credit card that I will keep - frozen in the freezer, of course!
Sidenote - I used the letter that Louisa (name?) had written to the BOA CEO as my template. Clearly there's something about that style that works!
Thanks for writing a LIFE-CHANGING blog and for all the great work you do!
Congrats! Way to rock your debt!
(Photo: Menage a Moi)
]]>@nbs2:
This may be the link:
i've never heard of limiting the amount over your payment, unless it dings you with a fee. i probably need to look into it more. weird, their website isn't working right now.
]]>I don't have emergency funds at the moment, but at least I'm done with that credit line, and it feels pretty good.
]]>If you're traveling abroad, get a Capital One to avoid the 1-3% fee most card companies tack on (unless you can afford it, go with American Express for the rewards program).
]]>@burnedout: I just got one of those notices, too. I pay off my balance every month though, so I'm not super worried about it.
It sucks for people who can't pay their cards in full every month though. I've had the same thing happen to me that happened to the lady in the article in slimmer times. Credit card and phone companies both will do everything possible to screw you when you're down.
]]>@burnedout: happens to me too. pay on time and in full, high fico score, yet my interest rate is somewhere around 19%. i think that's way too high for what i would think would be a good customer. sure 19% never bothers me because i pay it off all the time but i am thinking of a what-if scenario down the line where I may need a few months. Why should i be penalized so heavily when i have 10 years of being a perfect customer. i have called to request it being lowered and it never goes anywhere.
]]>@mwc5446: I am sorry to hear about your father. He should have stopped the protection service as soon as they didn't help him. Alot of older and less knowledgable people got caught by this. I remember reading some gov't testimony on how Discover or another place had taken some lady for about $12,000 over the course of 8 years for an original debt of about $2000 because she actually tried to pay it occasionally or catch it up. She would have been ahead if she had even walked away and it was written off...
]]>@nerevar: Whaaaaat? How can they limit the amount you can pay to 3x the bill for a credit card? You must have a different type loan or something. I would think that you could pay any amount of money. Now they may limit automatic transactions or something but then why not use that paper check thing for the rest of the amount over 3x your bill...
Please explain. Thanks
]]>Back when we still "used" credit/consumer debt these guys were a thorn in the side. Now that we are a cash/debit card existence I am thrilled to not have to deal with their ilk.
Keep up the good work OP!
]]>My new goal for March is to somehow work the word "pigpile" into every conversation.
]]>@burnedout: I wouldn't cancel the card quite yet, but pay it off as fast as you can. Then let it sit and don't use it if possible.
And keep calling Capital One. Ask for a supervisor, your CSR might not have the authority to change the rate. Escalate the matter if need be.
]]>I'm leaving the bank and switching to a credit union.
]]>Forgiveness of fees that are [i]owed[/i] is not "basic customer service," it's exceptional customer service.
]]>no supplementary link to the Louisa(?) BOA letter article?
]]>That's awesome, kudos to Capital One. This is what banks should be doing, instead of foreclosing on homes rather help the people by lowering their monthly payments and interest rates, that way they still get thier money and the consumer gets to keep their house.
]]>Congrats! Seriously, good job. And good luck!
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