The BBC Moneybox program recently did a peice about Capital One and how they have quite a sneaky way of charging interest in cash withdrawals. More details here:
I heard the programme too and while I agree that what Capital One is doing is undoubtedly extremely sneaky it is quite legal if their customer agreement has it buried somewhere in the small print. I am pretty confident that it's buried away somewhere in the small print that most of us never bother to read. Most people will assume - incorrectly - that a Capital One credit card works pretty much the same as any other - that if you pay the bill in full you effectively wipe the slate clean.
jb
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[snip]Perhaps, but is it enforceable ? Onerous or unusual contract terms are not enforceable if attention has not been drawn to them.
And let's not forget the UTCC regulations.
(uk.finance added)
This isn't an unusual condition. It is a non standard way of making a charge on the account. In the overall scheme of things it is a relatively small change which unfortunately affects a small number of people greatly. As others' have pointed out, it is likely to lose CO more in PR than it gains them in revenue
tim
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Sez who ? It appears unusual to many people, including the expert on the programme.
[snip] Onerous for them, then.
It isn't a condition. It is the method by which they calculate their charges, as usch it is a key feature and thus excempt from the unfair terms act.
I agree it is unusual.
tim
Surely it cannot be a key feature for those who already hold Capital One cards. It seems like one party taking advantage of its stronger position?
-- Doug Ramage
[watch spam trap]
Interesting point: dunno.
tim
[snip]
Interesting and IMHO totally incorrect legal opinion.
I am not really conversant with the Act; being Irish, I was referring to the EU regulations.
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