No. of Recommendations: 0
I have to admit, I'm starting to dislike all the credit card companies a little myself. :)

One of my classmates showed me a letter he received today from Capital One, which services his Visa account. They are closing his account due to a high debt ratio.

According to him, his payment history has been excellent. Most months, he can pay his whole balance, but a few times a year he will carry a balance. He pays on time. Overall, it would seem that he's a good customer.

The debt ratio needs some explanation: We are in medical school. Our student loans get reported on our credit reports, but they are listed as deferred, since part of the money is interest free, and part is interest deferred. Obviously, for most students, income is very low, and with school costs at around $25,000/year, the amount owed can add up quickly. (His debt is around $45,000 total.)

1) Does he have any recourse with Capital One? My thought on this is that it's a rather unique situation, since it's not debt he's currently making payments on.
2) Is it possible that he's protected by some portion of the fair lending laws, since Capital One is in some way discriminating against students?
3) He legitimately needs another credit card, any thoughts on who he could turn to, based on this situation? (I already told him to apply for an Optima Card, but he would probably be better off with a Visa card.)

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