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http://articles.moneycentral.msn.co...ts/IsBankofAmericaBlindsidingCardholders.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.
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.