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  1. #1
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    Oct 2005
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    Bank of American rate increases

    http://articles.moneycentral.msn.com...rdholders.aspx


    Bank of America is increasing rates based on no apparent deterioration in their credit scores at all.
    The major credit card lender in mid-January sent letters notifying some responsible cardholders that it would more than double their rates to as high as 28%, without giving explanations for the increases, according to copies of five letters obtained by BusinessWeek.

    Buzz about the letters is building on the Internet. Since mid-January, Credit.com, a credit card information site, has received 40 complaints from consumers whom Bank of America notified of sharp rate increases, even though they were current on their bills, says Emily Davidson, a Credit.com researcher. Complaint sites My3cents and Bank of America: Bad for America say they have received similar complaints.

    The so-called opt-out letters give borrowers the option of no longer using their cards and paying off their balances at the old rates. But they must write Bank of America by later this month if they plan to do so. If they don't, their rates on existing and new balances automatically will rise.
    What's striking is how arbitrary the Bank of America rate increases appear, credit industry experts say.

  2. #2
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    Well, well, well. I wondered why BofA just suddenly sent me a letter saying they'd increase my rate (by A LOT) if I didn't send them a letter opting out and then never use my card again. I've never made a payment late or paid less than about 5 times the minimum. I'm definitely sending them the opt-out letter and cutting up my card -- I already cashed in my World Points so they couldn't cancel them. Do they really expect people agree to pay 28% interest??? Who would just say, "Oh sure, whatever"?

  3. #3
    IrishMist's Avatar
    IrishMist is offline You can't control the wind - but you can adjust your sails
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    Quote Originally Posted by STEADFAST View Post
    Well, well, well. I wondered why BofA just suddenly sent me a letter saying they'd increase my rate (by A LOT) if I didn't send them a letter opting out and then never use my card again. I've never made a payment late or paid less than about 5 times the minimum. I'm definitely sending them the opt-out letter and cutting up my card -- I already cashed in my World Points so they couldn't cancel them. Do they really expect people agree to pay 28% interest??? Who would just say, "Oh sure, whatever"?
    They are probably counting on the multitudes of people that won't read the letter all that closely, lose track of it, or not write the opt-out letter in time.

    That will probably be the majority of recipients and BOA stands to make big money off this move.

    I personally find it to be disgusting. I think that as long as you pay as agreed, credit card companies should be locked into what ever rate they offer you, unless they want to lower it.

  4. #4
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    Mar 2004
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    I HATE B of A. With that said I have four accounts there but I hate them nonetheless. They have charges for everything - one for excess withdrawal, one for charging to transfer money from one account to another (in the case of transferring from savings to checking to cover funds), charging for not maintaining whatever balance they presume you must have - my list goes on and on. I had a Gold Option account with them which I paid off - a month later I get a charge of $248 on the Gold Option account - the remaining interest they tell me. I ask them will this be the end of it - no more charges? Yes they assure me. The next month there's a balance of 0.28 cents. Granted it's only 0.28 cents but still. I told them to close the account as I wanted nothing more to do with their swindling ways. They sent me a very "nice" letter stating that as I was such an important (cough) longtime customer they would be taking the 0.28 off my bill and my account remains open and in good standing. Okay - rant over. But did I mention I HATE B of A?!!!!

  5. #5
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    Jan 2005
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    I have 2 BOA accounts (one American Express with no balance and one Visa with a balance of under $1,000) and I haven't received a letter YET.

    I did however get a letter this week trying to get to me to write out a check for cash or to pay whatever with only 1.9% APR until Jan 2009.

    I do like BOA better than the other credit card company I had been with...can't remember what company that was though.

  6. #6
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    Aug 2005
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    Well you know if one goes up, the rest will likely go up too .

  7. #7
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    Citibank did that to me two years ago. Never used their card again.

  8. #8
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    We have one balance with B of A. We're going back through our mail to see if we got this letter. I don't remember it and neither does bf.

    It looks like they are getting a HUGE amount of bad publicity over it. I'm hoping this will convince other credit card companies not to do this.

  9. #9
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    Oh Captain, My Captain
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    And this is legal?

    Considering Congress pushing forward challenges to predatory lenders, I find it hard to believe that this will not be considered an issue....make sure you notify your congress person if you received the letter. Didn't Bof A just buy Citibank or was it Citicorp?

  10. #10
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    Quote Originally Posted by believe09 View Post
    Didn't Bof A just buy Citibank or was it Citicorp?
    Hi believe09,
    BofA is buying Countrywide.


  11. #11
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    Jun 2005
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    Bank of America did this exact thing to us for no reason a few months ago and DH went ballistic. He called BOA and demanded they lower it and they said no. So we opened a new card with our credit union and transfered the balance and cancelled the BOA card we had had for many years.

    Now Bank of America is begging for us to come back. We read the letters and take the phones calls and laugh and laugh! What morons.

    Of course, lay down with dogs, wake up with fleas. When you get in bed with almost any credit card lender, you're going to get some stench on you eventually.

  12. #12
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    BOA sucks...they are crooks! We finally got away from them!

  13. #13
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    I have 3 accounts at BOA. I have not had any trouble with them. My husband on the other hand just went in there and went balistic. He had made a large transfer in the morning from a bussiness account into his personal account. He then attempted to pay off some large debts which they told him he could not do for 48 hours (all the money was in BOA). He then decided he would just go ahead and write checks to get the job done. Several days later he recieved notice that he was bouncing checks because they were paying bills twice!!!!! Crazy! They over paid a van payment by more than $14,000.00 dollars (no kidding). My husband raised the roof and went in and pulled out everything including bussiness accounts totaling well into the mid six figures. I think they got the message.

    I forgot to add, I still have my accounts there. When I go in they do not call me by my first name any more, I am now Mrs.....LOL

  14. #14
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    Jul 2005
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    My boyfriend just got a mortgage with them. He is closing on the 3rd.

  15. #15
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    Aug 2004
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    Quote Originally Posted by deanws View Post
    My boyfriend just got a mortgage with them. He is closing on the 3rd.

    Sorry!



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