My partner and I founded our business in 1994. We've maintained a sterling credit record by making paying creditors on time a priority. Even though the past 18- to 24-month period has been particularly difficult, this summer was the worst. (I swear there is some sort of corporate A/P summer camp that the A/P folks at the companies owing us money were all attending.) Cash flow has been next to nil, but we still managed to pay the minimums on our credit accounts.
Somehow, however, we missed a payment to Capital One in August. The only explanation I can come up with is that I didn't see (perhaps didn't even receive) the electronic statement. Within a week of not receiving the payment, Captial One began calling me at my hom;not my offic-on the Sunday of a holiday weekend to demand payment. (We're a C corp, by the way.) I told the caller I couldn't possibly help him until I returned to work today. First thing this AM I checked into it, could find no statement or payment for August, and discovered that Capital One has upped their (already usurious) 17.9% interest rate to 29.4%!.
Via EFT I paid them $1,000 which more than covers the amount required, then called customer 'service.' The woman I spoke with was snooty and dismissive and told me that they will not consider a request to reduce the interest rate until 'you can prove that you warrant such consideration.' (Apparently a 12-13 year history of reliable payments is not sufficient proof.) They require 'timely payment for a minimum of 6 to 12 months, at which time you may call us again, and we may consider an interest rate reduction.' When I asked to speak to her manager, she replied that she was not authorized to 'transfer calls.'
Too many words (I apologize), but I'm at a loss about how to proceed. Our present cash flow will not accommodate paying the entire balance. No hints concerning appropriate contact info can be found on the Capital One site. So I'm throwing this out here in part to vent a little, but more in hopes someone has had similar experience and can suggest a method to get in touch with Capital One and, at least, plead my case.
Thanks for reading and for any suggestions you may have.
BizResearcher | Window Shopper |
9/8/2010 - 11:53 am
Have you considered writing a letter to someone higher up the chain at Capital One? You should be able to find names and contact information on the company's web site under 'Investors' at the bottom of the home page of their web site. Writing a strongly worded letter to the right person may not only help you, but also let the company know that some of their employees may need training in proper customer service procedures.
If you get no satisfaction, then you may want to consider closing the account and transferring the balance to a new card from a more customer-focused company.
I wish I could add a magic bullet to your situation, but I had similar problems with US Bank. I had a great response from HSBC in a similar situation.
I have had success reversing these usurious rates and reversing those ridiculous late payment charges, which mysteriously appear on my electronically paid accounts from time to time, by calling back and insisting on a supervisor from the first time someone answers the call. Often that tact gets the problem resolved without ever reaching a supervisor.
I am not a conspiract theorist, but I have found a tremendous effort to get us (customers) to move to electronic statements, and a resulting lack even of appearance of customer service. I am convinced the credit card services are augmenting revenues by adding various (unwarranted) service charges on the accounts, knowing that many people are unwilling to invest in a 20-40 minute phone process to get an unwarranted $20 - 30 fee reversed. (I often pay my kids to sit ont he line and get me as soon as a person actually answers the phone).
Although I can't necessary speak to your situation and I'm guessing that this type of thing is outside most expertise on this forum, I have been able to have Cap 1 remove a late payment on a personal account out of an oversight before.
It isn't easy, but generally speaking if you call them and tell them your story, eventually you find someone who is willing to listen.
BizResearcher | Window Shopper | 9/8/2010 - 11:53 am
cashforbiz | Performer | 9/11/2010 - 5:27 pm
MarkAse | Contributor | 9/13/2010 - 4:24 pm
Join The Discussion
You must be logged in to join the discussion. If you already have an SBA Community account, Log In to join the discussion.
New users, Register for a new account and join the conversation today!