I get so many emails from students of The Credit Millionaire System, from time to time I like to add them to my blog.
Although all emails that I receive are technically my property and can be used with permission, I do like to ask the author before I publish an email… it’s the nice thing to do.
In this case, Michael Flowers gave me full permission to print his comments to me. I thought they would be useful to you:
Hi Donna,
Were you aware Capital 1 increased rates in April to
many cardholders? This wasn’t a punitive measure,
they just brought the rate to 10.9%. We have a card
that enjoyed a 6.9% rate which was boosted. When I
called them, they said it happened to “everyone” and
would remain in effect for at least 6 months.After the 6 months, we called and they offered a 1%
reduction saying they “requested” we wait another 6
months before asking for another decrease. They did
say that periodically they could have a lower rate
available but we would have to call in to get it. So
you can get a 1% reduction now or MAYBE a larger one
later, just keep calling in.We did a no charge balance transfer to an account that
has an introductory rate of 0% until January 2009. I
wonder how many others are leaving Cap 1. I don’t have
them in my pocket now.Regards,
Michael Flowers
I’ve talked about this particular company before on this blog, and I don’t have them in my pocket either 
When it comes to your credit card needs, there are too many easy to find good companies out there to deal with ones that are making your life difficult. And while it’s within the credit card company’s right to increase your rates (after all, they decrease it without consulting you about it too… because it’s indexed to the T-bill usually), this tale just goes to show you that money is getting tight all around, for consumers and the credit card companies alike.
Consumer default rates are at an all-time high, and credit card companies are feeling the same pressure that mortgage companies started to feel a few months ago when the foreclosure rate decided to skyrocket.
Yes, it appears that the media dubbed “credit crunch” is in full swing.
What’s a Credit Millionaire to do?
Well, I’m working on it. I’ll get back to you in a few weeks about strategies for a tight money market.
Bountiful borrowing,
Donna Fox
2 Responses to “Capital One | Tales From the Front”
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What a difference the news media made in 2007. Their bad spin on the economy has delivered their projections. My meager $500. per month income has plummeted to a dismal $10,000. per month loss. A lifetime of earnings taken away by bad press. Lay the blame on working stiffs that try to get ahead as we will have to take it. When we are totally wiped out a new prosperity will suddenly appear so we can do it again. I, for one, am not through yet. Walt Davidson
It’s hard to feel any sympathy for the credit card companies who are “feeling the same pressure as the mortgage companies….” They have been enticing consumers for years with shady tactics - pretending to have the customers’ best interest in mind. Then the shell game begins as the credit companies switch rates, terms, even names. They provide “disclosure” in hard-to-understand language written in very fine print.
Consumer defaults on credit cards are as much the fault of the credit card companies as cigarette addiction can be (at least partially) blamed on the tobacco companies that lured the public in. True, the PERSON should know better, but we are all guilty of being snared by clever advertising on at least something.
Americans: We’re obese, we’re in debt, and we’re addicted to all sorts of unhealthy vices. So far, the government has been successful in getting more consumer-educating nutrition labels and warnings posted on cigarettes/alchohol. Now, how forcing the cc companies to TRULY disclose, in plain English, what they are REALLY offering and requiring financially literacy be a significant course in every high school?