Capital One Shutdown
“Stuff” happens. And so it is with my Capital One relationship. The bank recently decided they didn’t want my business, which is perfectly fine – not that they care about my opinion. But, along the way, it’s a reminder that not all shutdowns are equal. Some of you may especially relate right now. I’ve found this Capital One shutdown various levels of inconvenient, inconsequential, unexpected, and anticlimactic. Today, I’m sharing my experience through this process and my initial take. I’ll start at the beginning.
An Unintentional Partner
My decision to become a Capital One customer wasn’t my own. At about 24 years, my checking account with Capital One was my oldest one. I actually opened it online with ING Direct as an Orange account. Several years later, Capital One informed me they were taking over a portion of ING’s business, including my bank account. Not coincidentally, my solid interest rate with ING Direct trended lame with Capital One. But hey, it got a snazzy new name – “Capital One 360.” I passively, lazily decided to keep the account at that point, something Capital One probably calculated many customers would do. It’s been my everyday checking account ever since its opening. Since the transition to Capital One, I’ve rarely kept significant amounts in the account. Along the way, I somehow ended up with a Capital One online savings account, too. I shrugged that off and hardly used it at all.
What Happened
Bank Accounts
Several days ago, I received two emails from Capital One, both matter-of-factly titled, “We’re closing your account ending in XXXX.” The email didn’t provide any actual info on what led to this decision, focusing more on logistical information like what date the account is closing (the last day of this month), to stop writing checks (I don’t have any), and to redirect any automatic debits or direct deposits (nothing there, either). But the email helpfully noted the following:
When you opened your account, you agreed to the disclosures reserving our right to close it at any time, for any reason.
Okay, I get it, Capital One, you’re the boss. Perhaps the bank didn’t know I’ve pretty much been quiet quitting them for well over a decade.
Credit Cards
Two days later, I received another Capital One email, more vaguely titled, “Important news about your account.” The email promptly informed that Capital One closed my BJ’s OnePlus Mastercard, noting that all future charge attempts would be declined. In reality, neither my wife nor I had used the card in months.
As a primary cardmember, I had no other active credit card accounts with Capital One, having closed my Spark Cash Plus card a few years prior. But the bank wasn’t done.
A few days later, a friend reached out about my Capital One Venture X authorized user card. As the primary cardmember, he had received an email noting that the bank had removed an authorized user from the account. I didn’t need to keep reading – obviously, Capital One cooked my AU card. Notably, my online account never included this card. Capital One apparently made the extra effort to ensure this wallflower wasn’t invited to any more parties.
I hadn’t done anything noteworthy with Capital One in several years. Beyond my Spark Cash Plus and the on-a-whim BJ’s OnePlus card, Capital One has consistently declined my periodic card applications.
Initial Take on My Capital One Shutdown
The checking account shutdown is a bit inconvenient, as I primarily used it to pay small bills and make infrequent cash withdrawals. I can easily flank to other checking accounts for those needs. The BJ’s card shutdown isn’t a huge deal, as I wasn’t using the card as much as I expected.
As I considered at the beginning of the shutdown, the angle I cared about most died last. I liked being a Venture X authorized user so I could periodically visit the small, slowly-growing number of Capital One lounges. I’ve had enjoyable enough experiences here and there. But I was eventually done with some and a bit bewildered by others. Still, I liked the option, as I enjoy trying out most any new lounge at least once. No more with Capital One.
Capital One Shutdown – Conclusion
As Daniel Tiger says, “that was fun, but now it’s done.” But was it ever really that fun? For small periods, yes, but largely, no. I’m a bit surprised at the timing, as again, I’d been relatively quiet with Capital One for years. It’s a loss, but not one that significantly affects me. Moving the everyday transactions to another checking account is a minor inconvenience. This shutdown is even easier to take because Capital One didn’t seem to want much of my business throughout the years, anyway. I won’t miss the cards I never held. Indeed, I never quite understood the strange beast that is Capital One. Now, I care about that zero.
But the few good times were sweet. Thanks for the memories, Capital One!
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I got away from Capital One as soon as my ING CDs matured, Also closed checking as I recall. Like Ally much more.
CapOne loves to do this, and they get away with it since they never have to prove anything or give any explanation. Of course they aren’t the only bank that behaves so atrociously, but they have a way of doing it unexpectedly and affecting decades-old accounts. We need stronger consumer protections that make these sort of shutdowns illegal. If only the Patriot Act would get shut down instead of CFPB.
With the CFPB shut down, I suspect, we will see more banks using this window of opportunity to do what they could not do with the CFPB oversight. I think we are going to see big changes in our industry. The banks will be quite opportunistic.
@Christian – Absolutely right. Usually accounts are closed either if dormant for an extended period of time or if there is some breach of the terms and conditions (again from the information provided that doesn’t sound like an issue either). I would definitely follow up to see why (and escalate up as necessary). This could be something that dings your credit rating or could conceivably be picked up by other financial institutions (there are certain data bases of info on clients as evidenced by the ability to easily see your other banking relationships) that could lead other institutions to decide they don’t want you as a customer as well. At a minimum the actions by Capital One will be recorded and may set off red flags with other banks.
I wonder why they are shutting you down now…
Interesting if a bit odd. My concern would be more along the lines of why rather than the fact that Capital One did it. Also, how this might affect your wife’s relationship with the bank.