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To our customers,
A Message from Lynn Pike, President, Capital One Bank
In these unprecedented times within our financial markets, consumers and businesses large and small want to be certain that their financial institution is strong and secure.
In our continuing effort to provide Capital One Bank customers with the best banking experience possible, we are announcing some changes to our overdraft policies and practices for all of our consumer checking account holders. While the overwhelming majority of our customers don’t typically utilize our overdraft services, we believe our new checking account options along with the other tools and information Capital One provides, will help our customers minimize overdraft fees and better manage their accounts.
Beginning early next year, Capital One plans to eliminate overdraft fees for customers when they overdraw their accounts by $5 or less in any given day and will charge no more than 4 overdraft fees per day. As always, our current customers can choose to “opt out” of the courtesy overdraft service option for their accounts at any time, which means that customers can choose whether or not they want all of their overdraft transactions declined (including debit and ATM transactions) or considered for payment if funds are not available in their account. Additionally, by mid-2010, Capital One plans to provide new customers with the opportunity to decide whether they want to participate in the overdraft service option on their debit card and ATM transactions by "opting in."
We encourage customers to track and manage their accounts and always monitor their balances. These are the best and most effective ways to manage your finances and avoid overdraft charges on your account.
Capital One offers a variety of ways for customers to access and monitor their accounts that can help them avoid overdraft fees. We also offer ways to link savings and lines of credit to a customer’s checking account when there are not enough funds to cover a transaction.
To help customers manage their accounts and avoid overdraft fees, Capital One provides multiple methods of free, easy-to-use tools for customers to access and view their account balance including:
- online banking, mobile banking, phone banking;
- “account alerts” system which notifies a customer by phone, email, or wireless device when their balance is below a certain threshold;
- instant no fee transfers to/from Capital One checking and savings/money market products;
- free transfers to their accounts from most other bank or brokerage;
- use of online bill pay to set exact payment dates for bills.
Capital One also provides tutorials and other resources to help customers manage their finances available on our website at: http://www.capitalone.com/financialeducation/
We feel we have an obligation to ensure that our customers not only understand the products we offer, but that our practices always live up to our customers' expectations. Additional information will be made available to customers in the coming months.
Michael Dobbins
Executive Vice President, Consumer Banking
A Message from Lynn Pike, President, Capital One Bank
In these unprecedented times within our financial markets, consumers and businesses large and small want to be certain that their financial institution is strong and secure.
You can be confident that Capital One is a strong, stable, well-capitalized bank. Our team of veteran bankers is focused on managing our business decisively so that we are well positioned to meet your financial needs.
- We are one of the top 10 banks in the country.
- We have capital levels well above what our regulators require.
- Our balance sheet is strong and flexible, fortified to protect against near-term risks, while positioning Capital One to perform when the cycle begins to turn.
- Capital One Bank* is a member of the FDIC, which means our depositors are insured up to the limits established by federal law.
Below is additional information on the financial stability of Capital One.
Thank you for being a Capital One Bank customer. We appreciate your business. If you have any questions about the bank or your account, please let us know—we're here to help.
Best regards,
Lynn Pike
President, Capital One Bank
Capital One Facts
With today’s headlines, customers have asked for financial information on Capital One. We have summarized key public information about our company. Please note that this information is subject to change as the company updates financials through quarterly earnings reports and other announcements. The information below is as of September 30, 2009, unless otherwise noted.
With today’s headlines, customers have asked for financial information on Capital One. We have summarized key public information about our company. Please note that this information is subject to change as the company updates financials through quarterly earnings reports and other announcements. The information below is as of September 30, 2009, unless otherwise noted.
Financial Strength
• One of the top 10 banks in the country, Capital One had approximately $114.5 billion in total deposits and 45 million customer accounts companywide.
• Our strong and flexible balance sheet remains a source of strength. Allowance coverage ratios remain high and both funding and liquidity remain rock-solid.
• One of the top 10 banks in the country, Capital One had approximately $114.5 billion in total deposits and 45 million customer accounts companywide.
• Our strong and flexible balance sheet remains a source of strength. Allowance coverage ratios remain high and both funding and liquidity remain rock-solid.
Risk Profile
• Capital One had approximately $210 billion in total managed assets with a highly diversified loan portfolio.
• We have limited exposure to construction lending, which comprises less than 2 percent of total managed loans.
• Capital One has no exposure to CDOs or SIVs or leveraged loans, and no exposure to equity, hybrids or securities backed by Option ARMs.
• Capital One had approximately $210 billion in total managed assets with a highly diversified loan portfolio.
• We have limited exposure to construction lending, which comprises less than 2 percent of total managed loans.
• Capital One has no exposure to CDOs or SIVs or leveraged loans, and no exposure to equity, hybrids or securities backed by Option ARMs.
Liquidity and Capitalization
• Capital One has a healthy liquidity position, including a $37 billion high-quality investment portfolio.
• We have capitalization well above what our regulators require.
• On June 17, Capital One paid approximately $3.57 billion to repurchase the preferred stock issued through Treasury’s Capital Purchase Program (CPP) of the Troubled Asset Relief Program (TARP). The amount paid included accrued dividends through the repurchase date.
• Capital One has a healthy liquidity position, including a $37 billion high-quality investment portfolio.
• We have capitalization well above what our regulators require.
• On June 17, Capital One paid approximately $3.57 billion to repurchase the preferred stock issued through Treasury’s Capital Purchase Program (CPP) of the Troubled Asset Relief Program (TARP). The amount paid included accrued dividends through the repurchase date.
Debt ratings
As of June 17, our bank (Capital One, N.A.) is rated A2 by Moody’s and BBB+ by Standard & Poor’s.
As of June 17, our bank (Capital One, N.A.) is rated A2 by Moody’s and BBB+ by Standard & Poor’s.
FDIC
Capital One Bank* is a member of the FDIC.
• On May 20, 2009, President Obama signed the Helping Families Save Their Homes Act, which extends the increase in deposit insurance coverage from $100,000 to $250,000 per depositor through December 31, 2013.
• The $250,000 limit is permanent for IRAs and other certain retirement accounts.
• This extension does not apply to the Transaction Account Guarantee Program, which provides unlimited deposit insurance on all non-interest bearing transaction accounts, which was recently extended through June 30, 2010.
• Capital One does participate in the Transaction Account Guarantee Program and will through June 30, 2010.
Capital One Bank* is a member of the FDIC.
• On May 20, 2009, President Obama signed the Helping Families Save Their Homes Act, which extends the increase in deposit insurance coverage from $100,000 to $250,000 per depositor through December 31, 2013.
• The $250,000 limit is permanent for IRAs and other certain retirement accounts.
• This extension does not apply to the Transaction Account Guarantee Program, which provides unlimited deposit insurance on all non-interest bearing transaction accounts, which was recently extended through June 30, 2010.
• Capital One does participate in the Transaction Account Guarantee Program and will through June 30, 2010.
For additional information about Capital One, please refer to Capital One’s annual report and other reports filed with the Securities and Exchange Commission, including Capital One’s report on Form 10-K for the fiscal year ended December 31, 2008 and report on Form 10-Q for the quarters ended March 31, 2009 and June 30, 2009.
* Capital One Bank is a registered trade name of Capital One, N.A.
