In 2002, Capital One won the Wharton Infosys Business Transformation Award for its innovative strategy specifically related to their credit card products. In 2005, Capital One entered the retail banking market with its acquisition of New Orleans, Louisiana-based Hibernia National Bank.

On March 12, 2006, Capital One announced an agreement to acquire Melville, New York-based North Fork Bank for $14.6 billion U.S. dollars. The merger was completed on December 1, 2006. Upon the completion of the merger, the bank is to be renamed as "Capital One Bank".

Marketing

Capital One is a major sponsor of sports teams. In 2001 Capital One became the principal sponsor of the Florida Citrus Bowl, an annual college football game played in Orlando, Florida, renaming it the Capital One Bowl. In the UK, the company currently sponsors Premier League football club Sheffield United and Football League One club Nottingham Forest.

International Operations

Capital One commenced operations in Canada in 1996. Its head office is located in Toronto, Ontario. Unlike its diversified American parent, the Canadian business currently operates solely in the credit card market.

The UK headquarters of Capital One is in Nottingham, England.

Capital One also has a presence in Spain, with the local office located in Madrid.

The company was once active in France and South Africa, but has since withdrawn from these markets.

Diversity

Capital One received a 100% rating on the Corporate Equality Index released by the Human Rights Campaign starting in 2003, the second year of the report. Capital One's American division has a large number of foreign-born employees: in 2003 it sponsored more people for H-1B visas than any other financial services company (19th overall), though in 2005 it was 4th in financial services (34th overall).

Controversy

Like most credit card companies that issue cards to people with poor or no credit (called "sub-prime"), Capital One offers multiple cards with low limits to some consumers, which can result in multiple over-limit and late payment fees and is considered by some consumer advocates to be predatory. Defenders of the practice argue that credit issuers should not be held responsible for borrowers' decisions.

Capital One does not disclose its customer's total credit limits to credit reporting agencies. However, a customer's highest amount of credit used is reported. Fair & Isacc, the creators of Fico scoring, partially base a consumer's credit score on their revolving credit utilization rate, or the current balance divided by the credit limit of all of revolving credit accounts. By reporting highest credit used vs. total credit utilization rates are impacted, within the FICO model a rise in utilization rates rises will lower consumers credit scores. The end result is that many, but not all, customers have lower FICO scores.

Subsidaries

Capital One Financial Corporation is the parent company of Capital One Auto Finance, or COAF, based in Plano, Texas. After buying PeopleFirst, it became the largest Internet auto lender, as well as one of the top US auto lenders overall.

The company, which previously sold auto loans only through direct mail and auto dealerships, lets auto owners refinance existing auto loans and shoppers apply for new auto loans online. A decision usually comes within 15 minutes, after which the buyer receives a "blank check" for up to the approved auto loan amount, which the buyer uses to purchase a car. To the dealership, it is as if the buyer were paying cash. The checks can be used to purchase a new or used vehicle, refinance, or buy out a lease (providing the negotiating power of cash).

COAF sells auto loans across the credit spectrum, then securitizes and resells them.