Capital One's "What's in your wallet?" commercial already made me sick (that's why I don't have any their no-hassle card), this story on MSN Money about Capital One's dirty trick to collect more fees disgusted me even more.
When Brad Kehn received his first credit card from Capital One Financial in 2004, it took him only three months to exceed its $300 credit limit and get socked with a $35 over-limit fee. But what surprised the Plankinton, S.D., resident more was that Cap One then offered him another card, even though he was over the limit — and then another and another.
By early 2006, he and his wife had six Cap One Visa cards and MasterCards. They were in over their heads.
The Kehns were late and over the limit on all six cards, despite occasionally borrowing from one to pay the other. Every month they chalked up $70 in late and over-limit fees on each card, for a total of $420, in addition to paying high interest rates as a penalty.
The couple fell further behind as their Cap One balances soared. Even so, they still received mail offers for more Cap One cards. "I didn't open them," says Kehn, 33, who manages a truck stop and runs a carpet-cleaning business on the side. "I owe these people that much damn money and they are willing to give me another credit card? This is nuts."
Eventually, the Kehns have to get help from a credit counseling agency.
Yet, in a response to inquiry about multiple card offers, Capital One said
Our goal is to offer products that meet our customers' needs and appropriately reflect their ability to pay.
Even to those people who are already late in making payment and piling up debt. No matter how beautifully they sound when they run their commercials, the only thing they actually care is making money even it means getting people deeper in debt and that they don't care!
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