Credit card hardship programs from Capital One help struggling customers.
In an effort to help struggling customers, Capital One offers credit card hardship programs to those that qualify for assistance. The bank doesn't publish a one-size-fits-all plan but rather the customer service representatives (or their supervisors) will place you in short-term “payment relief” or longer-term workout plans. Find details below on various Capital One credit card hardship programs and what the lender can and has offered with real life examples.
There are payment plans or extensions, deferments, payments arrangement programs as well as other forms of support generally provided. Capital One has decided it is better to work with customers to try to assist them with paying some bills rather than needing to write off the entire account. This approach of offering an emergency or even long term hardship type plan benefits both the bank and their customer as at the end of the day they both save money.
Types of plans typically offered by Capital One card holders facing a hardship
The hardship programs offered by Capital One provide a variety of assistance, but it will vary case by case. Two pathways are typical. First, Capital One’s in-house hardship relief can lower interest and suppress fees for a set period. Some offers are truly very temporary in nature. Examples of that can be as follows.
- Few months of reduced APR (interest rates) while others convert your revolving debt into a fixed-payment plan that lasts several years. They have offered cardholders zero percent interest rates for up to 6 months to help them catch up, and also offer settlements of their entire account.
- Some of the other common solutions include payment plans, forbearance, settlement that can forgive part of the balance and the lender is also involved in waving some fees.
Because the bank calibrates terms to your account history, income and capacity to pay the credit card over time, you’ll need to call and be ready to verify the hardship and your current income. As each hardship case is assessed on a one off basis.
Second, if you want one payment across multiple cards or even different types of Capital One loans (such as a car loan), Capital One routinely cooperates with nonprofit credit-counseling agencies on Debt Management Plans (DMPs). This can also be combined with other other hardship plans referenced above. Here are more details on what a DMP is.
- On a DMP from Capital One, your card is typically closed and your APR is lowered under pre-set creditor concessions.Counselors that partner with Capital One may secure lower rates and waive fees amoung other options. Industry data from reputable nonprofit credit counseling agencies shows DMP interest rates commonly land around 6% - 10%, which is a dramatic cut from typical 20 to 30% variable card APRs.
Examples of savings from Capital One hardship programs
As noted, these hardship plans can vary from customer to customer. Therefore the best view of outcomes as part of a Capital One hardship programs comes from recent consumer reports. If you want to read more examples of what Capital One customers are offered or how they are struggling to pay their cards, we have a discussion forum on Capital One hardship plans - with real life stores from borrowers across the US.
- A customer settled their outstanding credit card debt with Capital One for 60% of the balance. Capital One also agreed not to report it to the major credit reporting agencies. This ensured there was a long term impact on their credit scores.
- Another card-holder was able to enter the hardship program that both deferred future payments and the lender had their interest rate lowered to .9% while a debt management and a possible settlement plan was negotiated. However the end result was that Capital One did not offer to settle the debt, and it may be because the customer missed a couple payments while on the hardship plan. So it is key to not miss a payment.
- Some customers say that Cap One will not offer assistance unless you stop paying on your account. Once you do that, they may send it to a debt collector, but you should be able to settle or enter a hardship program at that point. After going thru the process, this customer also had 60% of their debt waived. However be aware that this can increase the risk to credit ratings.
- Information from one customer indicated that Capital One threatened to sue them after they missed a few payments. The account was also sent to collections. The customer called, told them their situation, and then they were transferred around. After multiple phone calls to the bank, they were finally offered the hardship program. It combined forbearance as well as a repayment plan on their outstanding credit card debt. But it was not easy to get or to find the correct person to speak to. The deal was 3% interest for a year, and they also ended up settling at 75% after a few months.
- Someone that recently lost their job reported that as soon as this occurred, they called the bank to explore their options. After being transferred around a few times, a supervisor type person agreed to cut their interest rate in half. The customer did need to show proof of unemployment and provide other documentation to show they were facing a financial hardship but Capital One agreed to work with them.
- A hardship plan was offered to a family that faced a medical crisis. The individual, who did have fairly strong credit scores, was provided with both a settlement on a portion of their outstanding debt and they were also offered a lower interest rate on their account for a twelve month period of time. However the credit card could only be used for emergency expenses. Prior to the medical condition, they had a balance of over $6,200, and that was cut in half.
- Another customer had a short term layoff at their job due to a factory retooling as well as outsourcing of their job to an overseas company. This short term reduction in income of the customer would have lead to them missing some payments on their Capital One credit card. They immediately called and asked what options were available, and the lender offered them a hardship program that abated/deferred the payments for the next 3 months.
- Other examples are cardholders described offers from a hardship program such as a 48-month plan around 7.4% - 9.99% APR with the account closed, and a 12-month temporary APR near 7.99%. Reddit has more details on some of these Capital One deals. Another report described a six-month temporary reduction that kept the card open but restored the standard APR afterward.
Applying for hardship or credit card payment plans from Capital One
These anecdotes align with the bank’s broader, publicly stated practice of waiving fees or deferring payments for customers in hardship. Your exact terms will vary, but these ranges are representative of what Capital One has offered recently.
Be ready to describe the cause of hardship, how long you expect it to last, and what you can afford monthly on our account after a realistic budget review. Capital One’s own guidance stresses contacting them before you miss payments and asking how long relief or a hardship lasts, how interest is handled, and whether fees are waived.
Capital One has been known, on rare occasions, to pro-actively call a historically strong customer if there was a noticeable change in their current payment practices. They will offer them one or more hardship type plans. However never relay on the company to call; be pro-active and contact them in order to get help with any outstanding credit card debts.
The main number to dial for Capital One is 1-877-383-4802 or 1-800-955-7070, or consumers can call the phone number that is on the back of their card as well. There are also other ways to get help as well, and find additional credit card assistance programs. Always ask the customer service representative for payment plans or deferrals or other forms of financial support, and ask for a referral to a Capital One emergency hardship program if needed.
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