Bank of America boosting credit card rates
The Wall Street Journal is reporting that Bank of America is increasing its credit card rates on 4 million of its customers who carry a balance beginning in June.
A BofA spokesperson stated that fewer than 10 percent of its customers who are "underpriced relative to market conditions" will see these changes.
The customers chosen for this rate hike are ones who both carry a balance and have low APRs—averaging 8.5 percent currently. Their rates will now rise into the low-to-mid teens.
That is a FALSE STATEMENT!
I am currently at 14.99% and I received a notice from BofA that my APR's (purchases, cash advances, and balance transfers) are going up to 28.49% after my May statement!!!
Of course, they also decided to knock off a couple hundred dollars off my credit line without telling me last week. It seems that their plan was to reduce my credit line bit by bit as I pay it off. The downside is not informing me in advance, I have to find out through my online account.
So I will be calling them to opt-out from this rate increase. Then pay off the total balance, and just leave it at zero. Who knows by then if BofA goes and reduce my credit line to just a few hundred just to screw me over.
Thank you Bank of Shame!
Comments
Posted by: dave
Posted on: April 14, 2009 08:34 AM
If you opt out doesn't that effectively close your account? If so, then that might reduce your available credit which would increase your debt to credit ratio. That will have a negative affect on your credit rating which would cause other cards to raise your rates.
Posted by: Rita
Posted on: April 14, 2009 10:55 AM
That's absolutely unbelievable. They have the problems and the customers have to pay for all this. I just can't believe this.
Posted by: Terri
Posted on: April 15, 2009 12:55 PM
The opt out only means that you do not accept the terms it does not close the account. However, if anything is charged to the account including any automatic payments you may have forgotten about, the balance will go to the higher rate. In fact if you call to close the account they will tell you that you will still be liable if any charges are presented. Guess there is no escaping their clutches. I just called to get all the info when I received one of the letters and guess what a couple of hours later my credit line was cut with no notice. Guess they hope to get me by going over the limit.
Posted by: Homes for sale missississauga
Posted on: April 16, 2009 12:52 PM
This is totally unacceptable, how can they do this? What effect will it have on the real estate market?
Posted by: Samuel Peterson
Posted on: April 20, 2009 03:15 PM
Its really happened dear, in that time all things are possible, so why can't this?
Posted by: Grant Powell
Posted on: April 22, 2009 06:46 PM
Dude, I got so screwed too! They won't even let me use my line of credit now... but it's still active... it doesn't make sense! Read my story here, you won't believe it!
http://grantpowell.com/api/Index.cfm/blog.post/i/3067/t/How-Bank-of-America-Screws-Its-Customers.htm
Posted by: Credit Reporting
Posted on: April 24, 2009 11:34 AM
This should be criminal. It's sad that our government let's banks take advantage of people when the economy is in such bad shape.
The credit card companies make is so you can't possibly ever pay it off if you're paying the monthly minimums.
Posted by: cheap merchant account
Posted on: May 5, 2009 11:44 AM
As if we need things like this when the country is in the state it is at the moment.