In J.D. Power’s annual ranking of credit card companies, Capital One has historically lagged behind the pack. In fact, Capital One came in second to last amongst major credit card issuers in 2008 (and 2007), garnering two out of a possible five stars in every category (see 2008 J.D. Power Rankings for complete details).
As part of the research process for Smart Balance Transfers, I personally test many credit card issuers by applying online for one of their credit cards. Generally, these tests go well. Such was not the case with Capital One. In fact, my test of Capital One’s customer service turned into an aggravating three week process. Today, after yet another frustrating encounter with Capital One’s customer service department, I put my “No Hassle” card in the shredder. Below is a step by step recounting of my Capital One customer service experience:
1.) Applying Online: The online application process was the only easy part of getting a Capital One credit card. From start to finish, the credit card application took about five minutes.
2.) Activating the Card: About ten days after applying, my card arrived in the mail. I called up the activation number and had my first experience with Capital One’s customer service department. It was not a good one. Customer service, as far as I understand it, exists to serve and assist customers. At Capital One, confusion and aggravation seems to be the M.O. The representative I spoke with sounded like she was talking through a broken walkie talkie. I couldn’t understand her and repeatedly had to ask her to repeat what she had just said. Apparently, her phone line wasn’t very clear as well. I had to repeat myself, well, repeatedly.
There were two big problems with this customer service experience. First, the telephone connection was horrible. More importantly, however, the representative, clearly located in an overseas call center, spoke poor English and understood English even less. A call that should have taken three minutes took close to ten.
Ultimately, I activated my card, but got off the phone frustrated. At this point, Capital One was about to fail my, “Mom test.” The “Mom test” is pretty straightforward. If I think a credit card company provides competent customer service that my Mom would have no issues with, they pass. If I think a credit card company would confuse, complicate, or frustrate my Mom, they fail. Capital One was on the brink.
3.) Using the Card: I made a small purchase online after activating my Capital One card. Fortunately, I did not leave the house with only this card in my wallet or try to use it soon after, because a week later I got a letter in the mail stating that my card was on hold due to potentially fraudulent activity. The letter stated that I needed to send in a copy of my driver’s license, social security card and a utility bill.
Annoyed, I spent the better part of an hour trying to locate my social security card. Ultimately, I gave up and called them. Again, customer service sounded like they were on the other end of a cup with a string attached. And again, when I could hear the customer service agent, I couldn’t really understand her English. This call to Capital One customer service lasted about ten minutes, involved two agents who spoke poor English, and ultimately ended up with my issue resolved. However, had I needed to use my card, I would have been unable to for close to ten days.
The communication issues, coupled with the fact that activating my card ultimately took three weeks, has led me, like J.D. Power, to give Capital One a big thumbs down on customer satisfaction. Not only would I not recommend this credit card company to my mother, I wouldn’t even recommend it to a third cousin I didn’t particularly like.
If you have had similar experiences (or positive ones), please take a moment to share your thoughts by posting a comment. Your feedback helps Smart Balance Transfers provide consumers like you with the information they need to avoid credit card hassles (pun intended!)
March 22nd, 2009 at 3:16 pm
Haha i just had the same exact experience five days ago. The line connection was poor, i felt like i was talking to a bunch of immigrants and they asked me for my social card, utility bill, and bank statement. They will not let me cancel until i provide these documents. I will try to clise my account via equifax .
March 23rd, 2009 at 11:08 am
Mike,
Unfortunately, you will have to deal with Capital One if you want to close your account. The credit bureaus will not do this. If you choose to do this, you will probably have to comply with their documentation requirements. However, I was actually told by a representative there to ask for a US representitive. I suggest you do the same, not only because it will be easier to understand the person, but also because it helps keep jobs in the US!
One thing to consider before closing an account is the effect this may have on your credit score. Closing accounts decreases your available credit and can have a negative impact on your credit score. Sometimes, it can have a big negative effect. If you are not being charged an annual fee, you may be better off keeping your account open, from a credit score perspective.
March 23rd, 2009 at 11:13 pm
my credit score is pristine and I am not in the market for a mortgage. I pay my vehicle purchase in cash and have a %50K credit limit with no balance. So I am fine with that.
March 24th, 2009 at 9:27 am
Mike,
You are definitely in a much different position than a lot of people I hear from these days. However, even though you don’t plan on needing a loan, etc, in the near future, you may want to reconsider closing this account, as the high credit limit and 0% credit utilization may be the main reason your score is so high.
When you get into the excellent credit range, it is very easy to slip into just good credit and much more difficult to get back into excellent. For example, closing the Capital One account may cause a 20 point drop in your credit report, which would be difficult to get back.
You can use a free credit monitoring service to get an estimate of how closing the account will affect your credit scores. There are a number of them listed in our free credit report section. With one of these tools, you can find out how closing the account will change your score and cancel the service before racking up any fees. It may be worthwhile, just to be sure you are doing the right thing.
June 10th, 2009 at 12:57 pm
I, had one payment to go, to pay off my Capital One Auto loan–they told me to mail them a check for the last pymnt. because they would not take it out of my checking, as they had every month for the last four years by electronic transfer. Well, guess what? they not only, cashed my check, I mailed, but they also took it out of my checking acc. It has been almost a month, and i still have not seen my refund. Customer Service is being handled by a Co. in India– they tell me they are working on the problem. In the future I’m going to look for a USA, CO. if there’s any left.
December 18th, 2009 at 4:11 pm
I purchased a car, and in fact, the nightmare began from get go. Needless to say my car was totalled, the loan was for 17,000.00 I had already paid 6,000.00, the insurance paid 13800.00 and gap paid another 8880.00 not to mention the warranty check was sent to Capital one. Can you believe they are still saying I owe them 2200.00? Oct. 12, 09 after numerous calls to them, they apologized and said yes account was paid in full. However, yesterday, I receive another call, different collection agency informing me that I owe 1600.00, however they would settle account for 500.00. What is up with them. BE SMART AVOID CAPITOL ONR AUTO FINANCE