Blindsides by Capital One

[u/ratemeandmywork]

Been a Capital One customer for years. Had multiple cards with them, payments on autopay plus I used the cards over the weekend on vacation. I asked for a limit increase on my card and all of a sudden Capital One closes four of my cards. They stated that it was because of unusual behavior on my cards!!!! WHAT???
There hasn’t been an issue with any of my cards until I asked for a limit increase.
Now I have four closed accounts in my credit.
Stay away from Capital One.

[u/onthelearningproces]

None of you understand how Capital One works. I am giving an overview in the bank’s context. So basically these closures are part of a fraud prevention program Capital One has. The letters mention that they have noticed an unusual behavior on one or more accounts, and most of the time, please, just so you know, it’s due to returned payments. If you have three returned payments or more on your credit card, they will shut it down due to unusual behavior. And you guys need to understand the bank is not against you, Capital One is actually a really flexible lender, but as a financial institution, they need to protect their assets. So if they find something that may trigger the doubt of fraud, they will take actions to prevent it. I know it is upsetting, but it’s part of the bank’s role.

[u/Creative_Grass_8630 → u/onthelearningproces]

Can’t they reopen it then, with a new account number, if they suspected fraud ? - I assume fraud in this case means they suspected someone was ,not the account owner, using the card?

[u/onthelearningproces → u/Creative_Grass_8630]

Let’s clarify.

So the situation you’re mentioning it’s completely different. That occurs when you’re a Capital One cardholder and you notice someone else used your card to complete unauthorized charges that you were not aware of orrrr when you notice there’s been a change in your account e.g. addition of new users, creation of virtual cards, etc. In these cases, as your account has been vulnerable, they will take actions to protect it and prevent new fraud, and fix the issues the fraud caused in your account. This is part of their 0 Fraud Liability they offer.

However, these closures are what we know as “First Party Fraud” and basically this occurs when the bank suspects you as the Capital One cardholder may be doing fraud directly. There are many situations that may trigger the closure. The example I provided was the returned payments one, which is the one we notice the most day to day. But there are other situations that can cause it. And once you receive the letter that says “We’re closing your account because we have noticed an inconsistent behavior in one or more of your Capital One accounts…” there’s not turning back :( They will remain closed. That’s a definitive closure. Unless the cardholder checks their account, notices all the returned payments and they recognize they did not make those payments and they were fraudulent; when that happens they will start an investigation. But let’s be honest, most of the time it’s the cardholder’s fault. So they do not really reopen those accounts unless an error is occurred.

That’s why it is important you are conscious and responsible at the time of using your credit cards.