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"Capital One customers hit by huge increases on credit cards"

By admin | March 5th, 2010 | Credit Cards

According to recent reports many credit card customers that have cards with Capital One have been stung with huge increases on their interest rates after the company nearly doubled its rates for some of its credit card customers. The credit card giant is said to have blamed the hike on economic factors, and has increased credit card rates by up to 7 percent for some cardholders.

Some cardholders have even seen the interest rates that they are being charged on their Capital One cards increase from just over 8 percent to over 15.3 percent. Although the rate hikes have not yet been put into place they are due to come in after customers receive their statements in March.

This does give those that do not want to put up with the rate hikes time to look for an alternative credit card provider so that they can keep their interest rate down.

No numbers have been released with regards to how many of the credit card giant’s customers will be affected, but the timing could not be worse for many of those who are still coping with their Christmas debt and who may have been affected by the recession.

Those that do not want to switch card but want to avoid paying the higher rate of interest are being given the option of repaying their balance at their existing rate providing they do not use the credit card any longer.

An official from Capital One stated: “The economic environment has changed dramatically and we must adjust rates to account appropriately for the increased risk of lending to consumers in an economic downturn. This significant downturn means that we have had to increase rates for some of our customers by up to 7%. This decision reflects similar moves throughout the credit card industry.”

Tags: interest, capital one, Personal finance, Credit Cards, Credit card balance transfer

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