Sarah Edwards | March 23, 2023
Summary: Capital One, N.A. oversees Kohl’s credit card program. If you’re being sued for a Kohl’s credit card debt, you can discuss debt settlement at any stage of the lawsuit. Just be sure to respond to the case, send an offer, and get the agreement in writing. SoloSettle can help with all these steps and more.
Kohl’s is a popular retail store with hundreds of storefronts throughout the U.S. Many people shop at Kohl's because of its high-quality goods and frequent discounts. The store offers clothing for the whole family, plus home goods, children’s toys, and shoes.
Like many retail stores, Kohl’s offers a credit card that consumers can apply for. Capital One, N.A. manages Kohl’s credit card program.
Kohl’s has a single retail credit card that consumers can use at any Kohl’s store or on the Kohl’s website. As the overseer and financier of Kohl’s credit cards, Capital One screens applicants before issuing the card.
Cardholders gain exclusive benefits for being cardholders. They receive 35% off their first purchase using their Kohl’s credit card. They’ll also receive 7.5% in Kohl’s Rewards on every purchase and frequent coupons. People who spend $600 within a year on their Kohl’s card are eligible for monthly free shipping events.
Kohl’s credit card has a variable APR tied to the current prime rate. Capital One adds 22.74% to the prime rate to arrive at the estimated variable APR, which is currently 30.24%. While there are no annual fees for the Kohl’s card, Capital One will charge a late fee of up to $40 for missed or returned payments.
If debt collectors come after you for a Kohl’s credit card debt, make them validate the debt by sending a Debt Validation Letter.
While Kohl’s credit card has a lot of perks for frequent shoppers, consumers must carefully manage their spending. Consumers should pay off their balance before the due date to optimize their benefits. If they don’t, they’ll encounter interest charges that can wipe out their savings from discounts.
Let’s consider an example.
Example: Katie applies for a Kohl’s credit card when Christmas shopping for her family. She has picked out $500 in gifts, so the 35% savings from opening an account is significant. Her total is $325, which she charges to the card. Katie’s payment due date is January 3, and her minimum payment is $50. Unfortunately, Katie misses the due date. She pays $50 on January 5. Her missed payment results in a $40 late fee. After Capital One applies the late fee and interest charges, her balance is essentially the same—$325. The extra fees and interest cost her nearly a third of her original 35% discount. Katie’s failure to pay off her balance and the late payment have damaged her credit score. Future creditors see an outstanding balance and late fee, which impacts her ability to qualify for new credit cards or loans.
Retail store cards like Kohl’s often carry higher interest rates than traditional credit cards issued by banks and credit unions. And unless they have a Visa or Mastercard logo, consumers can only use them in the store or on its website.
Applying for a retail store card is tempting since they often offer significant discounts for the first initial purchase. However, consumers should be wary of signing up for the card, especially if they know they won’t be able to pay off the full balance each month.
Additionally, receiving regular coupons can encourage shoppers to return more frequently than they might under normal circumstances, adding to their debts.
In an ideal world, consumers would pay off their credit card balances every month. This habit helps build credit while allowing them to take advantage of rewards programs. However, these cards make it easy to overspend, making it harder to pay down debt. External factors, like job loss or medical issues, can also impact payments.
Capital One, which oversees Kohl’s credit card program, has many complaints with the Better Business Bureau (BBB). While the company maintains an A- rating with the BBB, many consumers complain about customer service issues.
One customer experienced a severe problem with their Capital One Kohl’s credit card when the company accidentally disenrolled them from the autopay feature. The customer wasn’t aware they were no longer on autopay, resulting in a late payment. Capital One reported the late payment to the credit card bureaus, which damaged the consumer’s credit.
The consumer couldn’t resolve the situation with Capital One’s customer service department, so they wrote a complaint on the BBB website, finally leading to a satisfactory resolution.
If you’re a frequent Kohl’s shopper, signing up for a Kohl’s credit card can provide additional savings. However, make sure you can pay off the balance each month to avoid high interest charges.
Is Capital One, N.A. suing you for unpaid Kohl’s debt? Use SoloSuit to file your Answer.
If you’ve been sued for a Kohl’s credit card debt, you’ll be hearing from Capital One. They will file a suit against you in your local court, and it’s your responsibility to respond to the lawsuit before your state’s deadline.
Maybe you know that the debt is valid. If this is the case, you can still reach out to Capital One to discuss debt settlement.
Debt settlement can help you save money and avoid going to court. Luckily, you can still settle a debt even after you’ve been sued. Just follow these three steps:
SoloSettle can help you with all these steps and more. Check out this video to learn more:
SoloSuit makes it easy to fight debt collectors.
You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.
SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.
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Out Debt Validation Letter is the best way to respond to a collection letter. Many debt collectors will simply give up after receiving it.
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