Capital One Bank Capital One's Miles /Cash Reward Prorgram a Scam St. Louis Missouri

We would like to file a complaint regarding the poor business practices and unethical treatment by Capital One Bank. My wife and I were Capital One credit cardholders for about five years and paid our balances in full each month. (We also paid an annual fee.) We had accumulated 125,000 miles, which we wanted to redeem for two tickets to Europe. When we called on November 1, 2005 to redeem the miles we were informed that Capital One would not redeem the miles for the tickets because of a change in terms.

While we had several complaints against Capital One, our major complaint is that Capital One changed their terms for redeeming mileage for airline tickets and cash retroactively and without prior notification. Until we contacted the Better Business Bureau and the Board of Governors of the Federal Reserve, Capital One did not respond to our correspondence (several letters) and refused to send us a copy of the notification they claim they sent us. In fact, we never received a copy of the notification even after several requests.

Under the Freedom of Information Act (FOIA) we requested and received (from the Federal Reserve) documentation of complaints against Capital One that are similar to ours. One of the complainants speculated that he was singled out because he avoided finance charges by paying off his monthly balances in full, thereby making him an unprofitable customer. This is the same suspicion we expressed in one of our letters to the Federal Reserve. While there were only five complaints received from the Federal Reserve we also know four other cardholders who likewise did not receive prior notification by Capital One of the change in terms. It is likely that many cardholders did not take the time or make the effort to file a complaint with the Federal Reserve and that the five complaints received represent only a small percentage of those cardholders affected. However, we believe that the complaints that were received reflect a pattern of violations by Capital One.

We are looking into the possibility of having a class action suit filed against Capital One and have consulted an attorney regarding the matter. However, the five complaints received by the Federal Reserve may not be sufficient evidence. Consequently, we strongly encourage those with similar complaints against Capital One to send a letter to the Board of Governors of the Federal Reserve (the Federal agency overseeing the credit card industry). Their address is:

Ms. Jennifer Johnson
Secretary of the Board
Board of Governors of the Federal Reserve System
20th & Constitution Ave., NW
Washington, DC 20551

We believe customers need to send a strong message to Capital One and other unethical credit card companies whose poor business practices are not acceptable. Make your voice heard.

George & Joyce
Columbus, Ohio
U.S.A.