Capital One Account Is Restricted: Reasons And How To Reinstate Your Account?

What is capital one? Capital One is a financial organization specializing in credit cards, loans, banking, and saving accounts. It is 98th on the Fortune 500 list and works in The United States, Canada, and the United Kingdom.

In this article, we discussed how you can unrestricted or reinstate your Capital One account. There might be a number of reasons that could cause your account to get restricted.

Let's talk about its credit cards. Credit cards are one of the three divisions of Capital One's network. It provides credit cards in the United States, Canada, and the UK and is 3rd largest in the business after Chase and Citigroup. Its network is so large that its credit card loans make up 47.3% of total outstanding loans.

Restricted status:

Any credit card company usually puts "Restricted Statuses" on its credit card when it is considered a risk of bad debt. They usually do it when you frequently go over your credit limit and restrict it till it is brought within the credit limit. They sometimes even reduce the maximum credit limit on the card if need be.

Capital one has been known to restrict a lot of its credit cards. When it is restricted, you are not allowed to make any changes to the account or take further credit from it. Usually, the restriction is a sort of a complete cancellation of the card.

Another reason for the restriction might be detecting fraudulent activity from the card, like making an impossible payment. In such cases, your account is restricted or blocked immediately, and the transactions are stopped. You will be contacted about the activity later.

Capital One is also known for using this activity to remove reward points from users to avoid losses, even though it is not a customer-friendly thing to do.

Why is your Capital one account restricted?

There might be two reasons why your Capital One account is restricted;

There was an issue when you were performing a transaction, or the system noted that someone else was using your card or your account; hence, your account was restricted.

The second reason might be that you have a lot of late fees or dues that need to be cleared before you use capital One banking services, and they will reinstate your account once you clear all the dues.

What should you do?

If you find yourself in a situation where your account is restricted, then consider one of the following options

1. Calling Capital One:

It is an easy but important to call capital one's representatives to know what is going on. They will tell you what has happened with the account and why it was restricted in the first place.

The problem may lie with having too much credit on your card, in which case you will be asked to pay it off to zero to reopen the account.

The problem might lie with detected fraudulent activity on your card. In such a case, they will inform you about it and block your account to save themselves and you from fraud. You will later receive a call from their fraud wing to confirm if it was a mistake or actual fraud. If actual fraud was tried. They would close that account for safety.

2. Paying back your credit to zero:

In case the first situation is in order, you must simply pay back what you owe to the bank to open the credit card.

So this is all the information you need to be informed of and the know-how to tackle the situation when your card gets restricted by Capital One. With this, you will be able to get out of the precarious situation with ease.