An Open Letter to Capital One about its cutting of customer credit card limits…
Mr. Richard Fairbank
Chief Executive Officer
Capital One Financial Corp
1680 Capital One Drive
McLean, VA 22102-3491
Dear Mr. Fairbank:
My wife and I really like your tv commercials, especially the ones that talk about “reinventing banking.” But then a few months ago, we learned what “reinventing” really meant. That’s when we were notified about a major reduction in our credit card limits. To say that we are angry would be an understatement.
We understand that banks need to be fiscally solvent. But to single-handedly cut credit card limits for people at the time of COVID-19 shows no concern for your customers. Because the issue is a double-bladed sword, it would have been far better (in my humble opinion) for you to explain what you were PLANNING to do and WHY, and then asking customers if they’d be willing to help you meet this goal by taking a reduction in their credit card limits. You could have given your customers a choice of a minimum 10% cut (below a certain credit score) or a voluntary 15%, 25%, or, say, a 50% reduction (with a “we’ll have to cut limits by 15% on or about CHOOSE A DATE, if we don’t hear from you.”).
Further, when I called your bank to protest the move (and I did speak with a supervisor), I was told, in no uncertain terms, the equivalent of “TOO BAD!”
For the record, you cut one of our personal accounts by more than 71% and our business credit by 50%. Yet, our credit scores are around 800, making us far better credit risks than we were when you gave us the higher credit limits years ago. Immediately after you cut our two credit card limits, another bank gladly raised my credit limit on one of my cards. The reason was clear. We are good stewards of our credit cards, keeping the high limits only for use in the event of emergencies. In fact, all of our credit card balances are now net zero each month except for charges we incur that month.
So, to help you in your quest to lower your credit card exposure, my wife and I just closed our four Capital One credit card accounts (3 personal and one business). I asked that your bank put the following notice as to the reason on our credit bureau records – “Account was closed at customer’s request because Capital One arbitrarily lowered customer’s credit card limit.” If you don’t place that notification there, we will! Now that I have canceled our cards, I will post this letter and a link to a related CBS story about your callous disregard for your customers at my blog site.
And while this credit cutback operation is in full swing, I see that you are out there (via new marketing campaign advertisements) looking for new customers.
Just for the record, it is this lack of respect for customers that often spells the demise of a business. So, too, is the disconnect between different departments (the left hand doesn’t know what the right hand is doing).
At least, I can say that I was upfront and honest with you; I know that reciprocity was not operating here.
Sincerely,
H Michael Mogil
Naples, FL