Capital One - minus one and then some (Capital One)

Member Name: diffyb

Product:	Capital One
Date:	10/03/06 (4291 review reads)
Rating:

Advantages: Anybody can get one of their cards

Disadvantages: You'll probably regret the decision to apply

~~ Disclaimer ~~
This review is based on my personal experience of Capital One which may or may not be representative of the company as a whole - you decide.
My main "problem" experience with this company was in 2003 but all other details are current.


~~ Background ~~
I applied for, and obtained, a Capital One Classic credit card in January 2003 which surprised me as :-
- my credit history was chequered to say the least
- I had been turned down by a few other companies
- I had moved house 4 times in the previous 3 years

So the message seems quite clear - Capital One will give a credit card to virtually anybody - I'm living proof of that.


~~ The Company ~~
This is an American owned company so it's hardly surprising that the CEO has a name like "Rich Fairbank" - my theory is that he was christened "Poor Fairbank" and made his name change after discovering gullible people looking for credit :)

Capital One boast 49 million customers worldwide and operate a call centre in the UK (Nottingham - which explains the broad accent when I call Customer Services).


~~ Application criteria ~~
There are a few pre-requisites for applying for a Capital One credit card :-
- you must be over 18 years of age (21 for the Platinum card)
- you must be resident in the UK
- you must be earning £10,000 per annum minimum

If you meet these criteria then you can apply for one of Capital One's credit cards.

You can either respond to mail shots (like I did) or go online and apply over the internet - I haven't actually done this but I've visited the website and it looks very straighforward.


~~ What Type of Card Would You LIke ~~
To be perfectly honest.........it doesn't really matter which of the credit cards on offer that you would like as Capital One make that decision for you - end of story. If you don't like their choice then tough luck because they are not all that flexible when it comes to your preferences as I shall explain later in this review.

There are 3 cards on offer (exclusing business users) :-
- Capital One Classic
Aimed at those of us who would (quote) "like to strengthen
our (my) credit history".

- Capital One Platinum
For people "with excellent credit history".

- Capital One No Hassle Platinum
For the real elite who have an "excellent credit history".

What actually happens is that you apply for the card you want and then Capital One review your application and give you the card that they want you to have.
Now, ordinarily, this wouldn't bother me except for the subtle differences between the 3 card types - read on........


~~ The Figures ~~
I was astounded when I realised how much the APR varied between the 3 options.
For new purchases which you don't manage to pay off within 54 days, you will find yourself being charged (APR) :-
- C1 Classic 29.9% *****
- C1 Platinum 15.9%
- C1 No hassle Platinum 6.9%

As with most credit cards, you do get 54 days interest free on new purchases.

You also get "free" identity theft assistance - quite handy in the current climate.

Watch out for balance transfers as Capital One offer deals as low as 0% APR depending on your spending pattern.


~~ Charges ~~
I found out about these the hard way :-
- £18 if you go over your credit limit
- £18 if you miss a payment
- £18 if your payment is late

Be careful too - if your payment is late and the £18 charge takes you over your credit limit.........you get charged ANOTHER £18 !!


~~ Payment Protection Insurance ~~
Capital One encourage you to take out PPI which, in the event of you becoming sick, having an accident stopping you from working or you become unemployed, will pay off 10% of the outstanding balance for 12 months or until you go back to work - whichever is the first to happen.

As I haven't used my credit card for some time I can't tell you how much this costs and it isn't explained on their website but from memory, it is competitive with Morgan Stanley at least.


~~ Customer Services ~~
The customer service centre operates 24 hours a day, 7 days a week, although I think this is a recent improvement as I remember having to wait all weekend to contact them back in 2003.

The first hurdle to get over is the automated answering service which asks for :-
- your card number
- your date of birth

Once you get to speak to a "real" person you'll also need :
- the expiry date of your card
- the 3 digit security number above the signature block
This poses a problem, if for example you cut up your card in a fit of rage 18 months ago and have recently received a bill for something you didn't buy - as your bill does not contain all of this information for obvious reasons.

My personal experience of Capital One customer service is diabolical.
I paid one month by cheque which was cashed but Capital One said they didnt receive it.
I spent 4 frantic months, over 20 phone calls and a letter to the insurance ombudsman to get the money credited to my account.
Every month I received nasty letters and an £18 charge which was eventually written off but it took nerves of steel on my part not to give in and pay the balance again - this definitely qualifies me to disarm unexploded bombs, a somewhat less hazardous task in my opinion.

After resolving that issue, I then cancelled my card only to keep receiving new ones, the most recent being last month, some 14 months after cancelling my account.

Capital One say that you are responsible for any spending on your account even after your account is "closed".


~~ What Is GOOD about Capital One ~~
The adverts look pretty good - those ones with hoards of barbarians racing toward the unsuspecting couple who suddenly produce their Capital One No Hassle Platinum Master Card to scare them off.

The balance transfer deals looks quite competitive at the 6% mark.

The application process is simple - online or by post.

You can register online and check your balance, view statements or complain to head office (jus don't expect a reply).

They offer Active Fraud Protection which is monitoring of your spending habits - if your card is stolen and somebody goes on a spendig spree then it will be spotted and your card blacklisted.
Likewise, if you are skint one month and decide to use your credit card a few more times than normal, don't be surprised by the sniggers in the Tesco queue as you are politely told that your card has been declined ........

All the cards apart from the Classic Visa Card look good from an APR perspective.


~~ What I Don't Like About Capital One ~~
How can I put this ......
Customer Service
Customer experience
Complaints Procedure

There is a definite trend there - perhaps I was unlucky, who knows - I'm sure plenty of people have no hassle at all.
But, in my book, there is no excuse for the poor, shoody customer service offered by Capital One.

Surprisingly, last year, Capital One appeared in the Sunday Times top 100 "Best Places To Work" and came 39th in the Financial Times "Best UK Workplace" - so perhaps they employ sadists who LIKE giving their customers so much grief.

If you choose a Capital One card - good luck - I certainly couldn't recommend them though.

Summary: One of the worst financial decisions I ever made.