I began a borrowing relationship with Capital One in 1997 and up until 2005 had two loans with them both of which were paid off early. In 2005 I borrowed $32,000 and took it for 60 months.
Last year (2009) due to loss of income and cut back in hours I called Capital One at the end of May and asked if I could refinance the loan ($23,000 balance) and their credit card ($6,000 balance total loan $29,000) and take it for the maximum term of 84 months to cut my payment in half. My credit score at the time as 750 and my wife's score was 770. I was told I was a great customer and my history with them was excellent but they could not combine or refinance existing debt. I was stunned.
After cashing in 401K plans and a college fund to make ends meet in December we ran out of money and stopped paying Capital One this year.
I have since found out the reason they would not help a good customer with excellent credit last year is because they wait until you go delinquent with them then turn you over to their Recovery Unit which will refinance the debt at twice the rate and fees to give you a "second chance". Capital One makes more money off of the "second chance" then if they would have refinanced the loan in the first place.
To me this is a disgrace and should be illegal. Capital One to me is Crapital One.
Product or Service Mentioned: Capital One Credit Card.