What did Capital One do to me?

Well, I was a Capital One customer for about 10 years. I had a reasonably high credit line which has been paid off for over two years - until this past December. My dog got sick (see http://my-dog-fluffy.blogspot.com/) for details. I charged a bunch of his medical expenses. I DID NOT pay late, and I paid *more* than the minimum.

So they raised my interest rate from 7.9% to 17.9%! In these troubled times, though, I decided to grit my teeth and bear it. I got a home equity loan, paid off most of the card, and figured I would pay the small remaining balance in a couple of months. I hated that they scammed me to make a lot of money as soon as I had a balance for a month or two, but what could I do? My dog was sick.

Anyway, yesterday get a letter in the mail saying they have reviewed my account and dropped my credit line to $500 above my current balance! They acknowledged there were no late payments, that I wasn't over the limit, etc. They said that now with the home equity loan I had additional debt and blah blah blah blah...

I had been a Capital One customer for 10 years. And this is how they pay it back? By hiking up my interest rate and then taking away my free credit? Well, there's a ripple effect, too! Because them reducing my credit limit increased (artifactually) my debt-to-income ratio, and thereby damages my credit score!

So I cancelled the account. The only good news is I was still ine opt-out period. So not only did they lose me as a customer for the past 10 years - they will only get 7.9% instead of 17.9% because I closed the account before the end of the opt-out period.

That said, I promised them I would be an angry customer. I wrote the President for his "purple file." I sent letters to my Congresspeople. I am calling and writing everyone I know about this. Of course, I wouldn't blame them if they were afraid to relinquish their Capital One cards until this happens to them, but you can bet it will.