Not necessarily true. You are given the option of "closing" the account and paying your current interest rate on the balance. If Capital One pulls this on a good customer that has always paid on time and not exceeded their credit limit, and they have a rather high balance on the account, I would just close the account. If there is not a big balance on the account, I would pay it off; BUT keep the account open given that it helps keep your amount of use-able credit line high and hence your FICA score high. That having been said, this appears to be the "policy" of many credit card banks ever since the beginning of the new year. They have been raising rates even though the customer has always paid on time and never exceeded their credit limit. The Banks are HUNGRY for REVENUE!!!
Yes, people need to read the "Change in Terms" carefully as it might simply be warning you of what the DEFAULT RATE gets increased to, and NOT an actual change to your particular account.
^^^ It will be the new new thing. If people are walking away from secured debt (mortgages) en masse, what do you think will keep them paying on their unsecured debt?