Last night I collected the mail and got this ‘lovely’ little surprise from Capital One. They said that because interest rates have been rising over the years but I have a had a low rate all this time (8.9%) there is going to be a ‘small’ increase in my rate.
Small? They are raising my rate to 13.9% effective April 2007. What a great notification. They tell me about this just one month before it takes effect. Sweet.
Now let’s get to the REALLY good part. This new interest rate will apply to the total balance that I have as of April 1st. What?
I just got an offer to transfer balances over the card a few months ago at lower rates so I went ahead and did all these transfers. The payments go to the lowest aprs first so then whatever balance I have will be at the higher rate.
Not good. That is not a small increase, it is a big one. To go from 8.9% to 13.9% is quite a lot to me.
Is this my week for customer service issues? I am dealing with T Mobile now (see previous post) and now this.