If you have a Bank of America credit card, you may have recently received notification of an interest rate increase. Unfortunately, you're now one of millions of credit cardholders that have their interest rate increased in recent months. Not too long ago, Citibank implemented a brutal rate hike on cardholders, doubling and even tripling interest rates in some cases.
As always, you can opt-out of the interest rate increase and, from what I've read (via Credit Matters Blog), Bank of America has a slightly attractive opt-out deal (if there is such a thing). If you opt-out of the interest rate increase, you have the convenience of paying off your credit card balance under the old interest rate as long as you don't make any new purchases. Your credit card will stay open after you repay the balance, assuming BoA doesn't change it's mind before then. If you use your card, either before or after you've paid off the balance, the new interest rate will go into effect.
What makes the opt-out more attractive is that you can pay off your balance at the old rate without having your credit card closed, which might have lowered your credit score. Of course, Bank of America stands to benefit, too. By keeping your credit card open, you're more likely to make a charge to your account than if it were closed, giving them a greater chance to make some money from the higher interest rate.
This is one time when opting-out might be a good idea. Just make sure you don't use your credit card until you've repaid the balance. Then, once it's paid off, make periodic purchases, e.g. every 2-3 months, with your card to keep it active and pay the balance in full when the billing statement comes.
Update:Be careful about calling to ask for a lower interest rate. CreditMattersBlog.com has warned readers that Bank of America is known for taking information you reveal during those calls and using it against you. In fact, one commenter Hanadarko, says his sister was convinced to apply for a lower rate card, but ended up with a $1,000 credit limit reduction her credit limit reduced to just $1,000 above her balance! BoA reps should be reading your Miranda rights when you call because anything you say can and will be used against you.
Have you negotiated your way into a lower interest rate? Tell us how.
Related:
I have a 784 credit score, $28,000 limit, and a balance under $2,000. My last payment was over $500 and I just received an interest rate increase notification. How do they think that this is going to get them more business? My wife wants to pay it off and cancel the card, but I think it will hit our credit score.
Does anyone have the mailing address of a decision maker over there? I really want to put my complaint in writing. I have an excellent credit score and a perfect five year history on this card. My last balance was less than 20% of my limit and I paid it off in full. My interest rate is doubling from 4.9 to 9.9%. The letter gave no explanation. I talked to two customer service representatives and they told me there was nothing they would do and no other card they had that would beat this rate. I asked them if they wanted my business in the future when I go to change checking accounts or refinance my home.
My interest rate was going up from 7.9% to 12.9%. I don’t use my credit cards anymore and am just working on paying off the balances. I called Bank of America and was able to opt-out of the new interest rate over the phone. It took being on hold for 20 minutes, but that was the only issue I had.
Well, the one thing we’ve seen across the board with interest rate hikes is that it has little to nothing to do with credit scores and everything to do with “the economy.” Like I said in the blog post, there’s actually nothing wrong with simply opting-out of the interest rate and paying off the balance. BoA will leave your credit card open and you won’t lose credit score points. Then, you can avoid the cost of a higher interest rate by paying your balance in full at the end of every month. May take a change in spending habits, but it’s worth it.
I opted out of the new terms and will never get a bank of america card again. I have over a 800 rating, always have been approved for the lowest interest rate and dont even have a home loan(is paid off). Have been a customer of them for 17 or so years, paid off several cards over that time and 3 car loans. My income doubled this year so I am even less risk than in past and I recived the letter, so it is a across the board I think. They may think it is helping them, but they are losing out from Any future purchases from me. I may even change my bank accounts from there and just go to my local credit union. Doesn’t affect me much since I just planned on paying off that card, but is still low down to some people who do need to use a credit card on a regular basis.
i opted out of these companies, chase, captiol one, and now bank of america. like most people i have a spotless credit record. i also sent their rate hike phamplets to my congressman along with a copy of the letter i sent the companies telling them that they lied to congress when they stated they did not do these practices under oath. they take our tax money then rip us all off to pay for their bad management. i also cut their cards up and mailed them back in bitty pieces, along with their promotion mailings to me. the letter said. stick it. enough of us cut them up, send to congress or senate, i also asked the congressman not to give them any more of our money, they don’t deserve it. if all 34 million of us tell them to stuff it they might decide that its bad for business. but no matter i am done with them period.
I understand everyone’s frustration but, yes… there IS the option to pay down the debt you accrued previously at the APR you’ve got (provided, of course, there aren’t lates/overlimits on the acct that will drive it to the default).
I get where people are coming from, but the thing is — we’re in a different economy and every time you swipe your card, you’re using THE BANK’S MONEY (which seems to be confusion in the market) and, you’re agreeing to the unsecured lending terms you’ve signed up for (including arbitrary increases). If anyone here has had a card in the 80’s, when the unsecured market was rough, you’ll remember 20%+ APRS for people with THE BEST CREDIT. What the bank is doing is simply mapping people over to current market standards. Yes, there’re people with great credit that’re affected by it… but the reality is, even if you pay “more than the minimum”, you’re still using money that is not your own to make purchases. That’s the reality of it. If it’s riskier for ANY bank to lend funds, then the increase in APR for lending such funds is warranted.
Since many of us have seen APR’s decrease since the 80’s, when lending became less risky, I’d venture to say we’ll see it again — but please take a second to step back and realize that it’s YOU who’s using the bank’s funds and YOU who have the option to STOP using the bank’s funds, no? Or is the bank forcing americans to use credit cards on a daily basis, even after providing the option to pay them down at their old rates? It’s astounding! So call. Call and opt out. Maintain the rate you’ve got on the balance you have. No one’s forcing you not to. But if the mindset of “I DESERVE to use the bank’s money whenever I want at the interest i’ve got …” is the mindset in our society — well, then, we can see how we’ve got the credit debt as a nation we do!
oh please. bank of america has bled the American people dry with their billion dollar begging bailouts, and now they want to bleed even more money from the American people.
BANK OF AMERICA JUST NEEDS TO FAIL!
Until credit card companies are properly regulated, they will continue to steal money from thier customers. I no longer have anything to do with credit cards, but I remember the outrage and fustration. I really want to see legislation that cleans up this industry, and I’m willing to vote against any candidate that signed the “Bankruptcy Bill” or is too cozy with the credit industry. I think it is very proper to send an email to your representative about about dishonest credit card practices (which there are too many to count). Lsstly, the comment about this being acceptable in the “new economy” is just plain silly. Surely, this individual wasn’t paying attention in the “old” economy. The failure, not to say collusion, of the government to conduct proper oversight has gotten us into this fix.
What I’m curious to know is WHY is our government WAITING until JUNE 2010 to put limits on this type of criminal practice that BofA and other companies are doing to the American public!!!!! Why wait till 2010??? Funny how the banks and CC companies are being given “a head start” of sorts. Wonder who is profiting from this wait.
I received a notice today from BofA. They are increasing my interest rate from 5.9% to 11.74%!! This is an increase of almost 100%!!
I have been a customer since 1998, use the card frequently which gives them processing fees, a 750+ credit score, and a spotless 5 year payment history.
I called to inquire why and I was told it was a “business policy” change and the “economy”. What does that mean?! I am a low risk borrower and my credit rating is steady if not increasing.
It doesn’t make sense. For years I have received balance transfer offers and just 4 months ago I used one to transfer a balance from another card to this card.
So I qualify for a special balance transfer rate, but now the default APR is being doubled?!
The risk profile just does not make any sense. Based on what I have read here and on many other sites (google Bank of America raises interest rates), there seems to be no reason or consistent logic behind the rate increases.
I am just fed up with Bank of America. I will definitely opt out. Then I will either pay the card of with a balance transfer from another lender (Wachovia and Discover Card are great) or take a 401(k) loan and payoff the card.
And I tell you this… Bank of America will NEVER have my business again!!!
@Lisa – I suspect a more credit card issuers will be increasing rates before the new credit card rules go into effect. Legislatures have been trying to move up the July 2010 date, but nothing’s been successful yet.
As the office manager of a concrete company I have been looking at comments from hundreds of people but I haven’t seen many comments from business owners. I was recently told by B of A that our business credit card with a balance of $30,000 is going from 9.99% to 18.74% and there is no “opt-out” option. We have to pay the rate they change it to. Why are businesses different? We have had this account for many years and only recently carried this high of a balance, We, like everyone else, paid our bills on time and always more than the minimum. I agree with some of the other comments, too. Why is the government waiting until June 2010 to do anything about this? We’ll all be broke or out of business by then.
I just got a CL drop from 20,000 dollars to 500 dollars, plus a hike in interest. The last time I checked my credit score was at the 93rd percentile, and I doubt it has changed much. I’ve had the BOA card for 10 years, and have banked with them or parent for even longer. I canceled the stupid card and will just use Cap one- they’ve been great so far. I don’t know why canceling the stupid card would cause a drop in your credit score, but if it does it just does- I no longer even want to be associated with BOA Credit- I probably took it a little personal, but it just seemed insulting to me, especially knowing they’d just taken our tax money. They aren’t the only bank in the world- just act like they think they are.
I also have excellent credit, have a high limit, but not a large balance, pay $500 monthly, sometimes with a postive balance on my card and i received the same notice. I am insulted. I am seriuosly thinking of getting an equity line with a credit card attached…. and canceling the cc.
I was employed by B of A for 11 LONG years. I retired 2 years ago. B of A has just raised my rate from 5% to 11%. I have never had a late payment, have paid more than double my minimum due for the last 3 years and have had this card and no other for 11 years. Even the cs rep on the phone said the bank is awful to work for now..I will close all accts and let govt. know of this despicable business practice. I want B of A to fold and Ken Lewis to lose his job.
I wrote them a letter stating I would leave their bank if my rates go up. The only way to make the greedy people stop is to not give them your business. There are plenty of other banks with rates just as good if not better who would love our business. BTW Didn’t they just get a huge chunk of our money through the bailouts?? And they need more??
I work for BoA and if you’re really intent on keeping your rate as it is, there is a simple solution. System errors have resulted in a glitch where transferring ANY amount of money via a balance transfer will automatically remove the rate increase from your account. This will allow you continue to use the card at the original contract rate. Ask any BoA rep and they will tell you the same…
If you use the opt. out as I did make sure you call the credit card company, and tell them you lost your card! so you can get a new one. This is the the best way to make sure no one puts a hit on it after you opt out. like ebay or any other Internet site that might have your old card number. Good luck on getting out of debt.
@Anon#18, I’m interested to know more about how this works. If you’re reading, send me an email – credit.guide@about.com. If what you’re saying is true, a person could make a minimal balance transfer, say $10, to the credit card with the pending rate increase, and the system would “forget” the rate increase ever existed. Have you seen this happen?
Don’t you just love this.To me this is like if I bought a car and we agreed on a price and interest rate charges,then after a couple years of making payments and doing everything right!! they said OK here’s the deal,were doubling the rate we said we would charge you on the car.You can keep the car and pay it off at the old rate but!!!! if you drive the car you will be charge double the rate we quoted.Thank you f$!in politicians!!!
Like most here, I too have an excellent credit score, always paid more than the minimum, and never ever had a late payment with BoA or any other cc. This rate increase is criminal. I closed my checking & savings accounts, and transferred the entire credit card balance to a card from Elan Financial at 2.99%
I’m done with BoA. Good bye and good riddance.
I have a 780 credit rating and never made a late payment on my BoA credit card. However, last week they notified me that my interest rate was going up 63 percent. When I called to question why, I was told (this is a direct quote), that ‘we need to pay off our government loan.’ I was dumbfounded, though I give this customer service rep points for candor. I cancelled and locked in my old rate. I will NEVER do business again with BoA.
I have you beat. I pulled up my statement today, I have a $.98 cents credit balance. The my high balance for the last 6 months is $198. The most I have EVER charged is $4000 2 years ago for lasik. Never been late on any bill on my credit report…or in my life. I make a little over $100k per year, my 3 credit scores are 779/784/799. My credit card limit has been $41000 for about a year, today it dropped to $21000.
I just recived notice of my BOA credit card interest rate doubling. I am closing all of my accounts with BOA but will keep my BOA card. I will not use it. I have a 780 credit score and have been a BOA customer for 15 years. How can BOA take all of that bailout money and then turn around and charge their best customers these outragous rates? I hope it backfires and BOA loses a large number of customers. I will let everyone I know and in every way I know to boycott BOA. I hope they go out of business because of their great greed. I will be taking all of my accounts to my local credit union and I urge others to do likewise.
I just got the notice, they pretty much doubled my rate. I told them you can stick your new rate. I’ll just payoff my balance at the old rate. I’m hoping everyone opts to freeze their account and payoff at the old rate.
The best thing we can do is STOP DOING BUSINESS WITH BAnKS AND START DOING ALL BUSINESS WTH CREDIT UNIONS! They work FOR the people, not AGAINST us. Then the Banks willhave to lower their rates or go out of business. Take your business to the CREDIT UNION!
I am one of the unfortunate that didn’t read this article until today … this of course AFTER BOA reduced my credit limit to $85 above my balance when I simply called in to discuss the interest rate increase!
I’m trying to plan a wedding and honeymoon and we were planning to use the balance to pay for things for the ease of making one payment transaction since I know at least one family member wants to help us pay for the honeymoon.
Makes our situation even more sticky without available credit. To top it off, I’ve had a BOA credit card since 2004, a credit score of 715, and no late/missed payments on ANY of my accounts.
Now that my card is maxed out on BOA’s account, I get to look forward to a lower credit score and I’m sure that will hit me just in time to buy my house
I wish this kind of thing were illegal.
My husband and I, who have separate accounts with Bank of America, also received letters about increased rates, new fees and a 50% reduction in our credit limit. We have never used more than 20% of our credit limits, always paid on time and have high credit scores. I appreciate the comments, as we were going to call Monday to close the accounts. Instead, we will put them away so our score doesn’t drop, and WE WILL NEVER USE BANK OF AMERICA SERVICES AGAIN!
I get why people are frustrated, I do… but I’m not an employee of BofA, I’m just someone who does my research – and has gotten letters from my own Credit Card Companies about the same things. At least my BofA card gives me the option to leave it open (to not kill my credit score by closing the card), unlike some of the other notices I’ve gotten where my only option to get out of it is to close my card AND make higher minimum payments.
I know people are frustrated, but it just seems like the ire everyone’s got is part of the larger issue in our society. If you only use 20% of your credit line… and it was cut to 50%, then you’re not losing anything, are you? You still have a huge buffer that won’t affect your credit score AND your score might actually go up b/c your “Available Credit” is now less, which means you have less option to go into higher debt. Everyone is attacking “The Big Banks” for not lending more – but then getting upset when they try to mitigate their risk TO lend more. I don’t think people understand that a 40K line of credit that isn’t being used isn’t just a # on a page… if you decide to go out tomorrow and buy a boat or a Harley, the bank has to have the money to pay for it… so if you don’t USE the line, why not make that credit available to someone who needs it?
As for the person w/the honeymoon issues… again, sorry it happened to you and ruined your plans but still… why is it that we, as a society EXPECT to be able to take vacations we can’t pay for in cash? My wife & I got married 2 years ago and decided to use the cash we got from our guests as the way to fund our honeymoon. We paid for the hotel room up front, and didn’t make any plans until we knew what we were working with…and managed to have a darned good time with no debt or guilt at the end of it all!
Whatever happened to only buying what we can afford, and saving for “the big things”? We can complain about The Big Banks all we want… but until we, as a society, realize that WE’RE the ones who gave rise to the credit industry with our buy-now/pay-later mindset, we’re always going to leave the ball in their court.
We also received that letter of increase from Bank of America. They are increasing our APR from 7.9% to 13.99%. Never missed payment or late. We are going to opt-out, pay off the balance and send them our shredded credit cards in the mail (w/ our letter). We will never do business with BOA after this.
This is part of a letter I wrote to the CEO and I have also posted it on several message boards. I also have wrote to congress. I am hoping others will take the same approach. I find the practices of Bank of America to be unethical…………..
April 09, 2009
Bank Of America Corporate Ctr.
Attn: Mr. Kenneth D. Lewis, CEO
100 N. Tryon Street, 18th Floor
Charlotte, NC 28255
Dear Mr. Lewis,
I’ve been a long-standing loyal customer of Bank of America since 1994. I possess two credit card accounts with the Corporation. I recently received my monthly statement for account 0000-0000-0000-0000, When I reviewed my account I had noticed a considerable increase in my interest rate. I called Bank Of America at 1-800-421-2110 and inquired on the drastic increase in my interest rates regarding the above mentioned account number. At that time I was informed that a letter had evidentially been sent out in November of 2008 increasing my Daily and Annual FIXED Percentage Rates to a much higher “VARIABLE” rate. I didn’t receive this notification or I would have promptly closed my account with Bank Of America. I’ve made several attempts in addressing the current rate increases with Bank Of America’s Customer Service team, regretfully this matter remains.
Best part is in the details. I have never (MY WHOLE LIFE) missed or been late on ANY payments. My rate is going from 6.99% to 23.89%.
If you opt out, DO NOT USE THE CARD! Any charges applied to your card after opt out will instantly roll you into the new interest rate adjustment. This is BS and should be illegal, why am I being charged the same rate as a default payment.
After reading this post that was emailed to me, I said “I know these MF’s haven’t raised my rate” and sure enough, I went to my bill and they did! I use to have 12.99 and now it went up to 17.99! I am mad as H! I have never missed a payment and always paid more than the minimum. Then I call BOA, and some idiot rep gives me BS about negative activity that is on my credit and when I inform her that no negative info is on my credit and to explain further, she comes up with nonsense! Then she has the nerve to tell me to double and triple the minimum in 6 months for a review to be lowered. As if I am some kind of idiot to pay down debt only for them to say no and limit their liability at the same time. These people are soooooooooo crooked! I can;t believe they induced us with an offer at a lower interest rate and then have the nerve to raise the interest and lower the credit limits! I am finding an alternative creditor to move my balance out of there! They damn sure won’t get 17.99 out of me! I hate BOA!
Bank Of America Solicited this offer to me through the mail intially. I agreed to a “CONTRACT” that CLEARLY stated my interest rate at 7.90% FIXED rate. They now have raised my rate to a 25.99% VARIABLE RATE. I had excellent credit. I don’t think they care much about how they can really mess up people’s lifes with such carelessness in raising rates so substatially which I CLEARLY did not sign up for in the ORIGINAL contract. I feel like sending them an “Addendum” with an attached interest rate for all the OVERCHARGES in interest that they now are charging me. ERRR There is going to be a ton of BANKRUPTCIES coming. Two of my brothers already refused to pay because they won’t talk to them. I’m planning Bankruptcy myself but intend on taking them to small claims first.
Why don’t they raise the interest rates of people who don’t manage their credit properly. It seems to me that they should want to do business with good customers with excellent payment histories to offset all the bad loans, line of credit accounts, and credit card accounts they shoveled on everyone. Every credit card I have with bank of america was a promotional offer that popped up after I logged out of my account.
Its not our fault they made a mistake buying Merrill Lynch for 50 billion dollars. Quit blaming the rate hikes on the economy and at least tell us the truth.
I learned today my interest rate with BofA is 27.5% I have a plus 700 credit rating. I missed two payment deadlines in the last 12 months and that is the reason my interest rate is 27.5%? I’ve had two business accounts, one personal, LARGE CDs, and for all that No notice, I had to ask… and they showed no remorse.. I think this is criminal and yes I will withdraw from the bank. Member since 1980.
Mr. Lewis you borrowed billions and this is the way you help America??? You should be in JAIL!!! BofA deserves to FAIL. I’m very upset by this…
This opt out deal is only for personal cards, not for business credit cards, which we have. Go figure.
BTW- As stated in an earlier comment, credit unions really are the way to go. I have belonged to a credit union for years and have found their fees/rates to always be cheaper, at least in my credit union. Even for a refinance of a house, which I checked into, it is a flat rate cheap fee.
If you pay the balance you charge against the account every month, the interest rate they charge is irrelevant. I could care less what they raise the rate to since I would rather go without eating than pay them a single penny of interest expense.
The new laws aren’t coming soon enough to consumers. I have a 741 pt. credit score which is close to the 755 pt. excellent score. I’ve decided to go bankrupt, so has two of my brothers. Three so far in my family and I’m sure others will to. How corrupt for the banks to have taken advantage of its customers who paid on time and played by the rule.
My APR went up to 17.99%. and I just was about to finance my Business and Home with BOA because of the excellent services we had with them in past. I have an excellent credit rating also and I never been late on any payment this is like a slap in the face, they will lower you APR and crush your spirit by doing a CRAZY stunt like this. The CSR said that the company going behind people that are slow pay or people that pay the minimum balance, she also said that they would like to see double and triple payment that would show that you can pay down the debt. She then tell me that BOA fail the stress test and must be able to recoup around 34 Billion dollars this is just stupid and CRAZY. I am sorry that everyone with good and excellent credit had to go through this. The class action law suit is around the corner.
I wouldn’t try the balance transfer the previous poster suggested.
I suspect that was a post of a smart ass getting kicks out of messing up peoples finances.
If true, the glich won’t be lasting long as I’m sure BOA will fix it.
Lastly, generally people who live within their means and deny themselves of what they cannont afford will just stop using credit cards.
What these banks are doing is putting a giant sign up that says, “We have nothing to lose. We are insolvent and if we don’t jack up rates on the people that pay, we’ll still be were were going — out of business.” The jacking up rates is a lastedt effort on the banks to survived. They’re done. We, the payers (who the trade calls deadbeats), aren’t going to put up with it. Then the banks will be left with the real deadbeats.
BUT beware the Democrats & Republicans will continue to foist the cost of overspending on the fiscally responsible because we are an electoral minority.
The only way we win is if we save. When they start taxing savings, we will have a revolution in this country.
BOA is raising my rate by 4.5 points. My credit is excellent, I pay on time and way more than balance. I’ll either opt out and cancel the card once it’s paid off or transfer my balance. Either way, once it’s paid, I’m done with credit cards & don’t want anything else to do with BOA.
An increase on new purchases I may understand, but on my prior balance is highly unfair. Seems like a lot of back-pedaling is going on (for example, my employer (state of NC) is taking back a % of pay I earned from July, 2008 to now).
I agree with the previous poster, it’s kind of suspect that the new credit card law doesn’t go into effect until 9 months after it’s signed – just enough time for banks to raise rates and appear as if the government gives a hoot.
I just found out my interest rate went from 7.90 to 12.99..I called and told them that my credit was perfect and they must have made a mistake.They gave me the economy is bad speech..Well doesn’t that apply to me too? Anyway, they did lower it to 9.99…. I will pay that off and start using my Simmons First card which if you look is only 7.25…Check it out… Let me know if there are any lower ones out there right now…
The last post here was in April. We who chose to “opt out” of the rate increase by mail, per the address listed on BofA’s letter, are now being told they never received our letters. Should I be surprised?! They are jacking up the interest rate, and the minimum payment due, on the June statement. When you call to complain, they are just saying they never got your letter of rejection and tell you you can opt out by phone on the day you call. Meanwhile, you MUST pay the increased minimum payment due for June (in my case, that’s a $40 hike above what I normally pay), and they will credit the BALANCE of the card, by that amount, in July. In other words, you are out of pocket for a large sum of cash for June, even if you sent in the letter. I will venture that most ALL of the customers who sent in a letter vs. calling them on the phone to opt out, are being told that BofA “never got the letter” and are having their rates and payments jacked up for June. If you are one of these, I hope you will post here, too, and that an investigation will take place. I’ve also written to CNN and MSNBC and will be writing to my state representatives, as well.
BOA was the bank to do business with. But I have lost respect and confident and not to mention trust. BOA no more lies, you are punishing the wrong people who have excellent credit by raising interest rate and lowering credit lines, when in fact they have work so hard to achieve that line of credit by paying on time and never miss a payment. BOA will see this as time goes on but don’t expect customer to return especially if you did them wrong. I was told by a CSR from BOA that didn’t want the bail out money they just took it because the government was giving it out. LIES, LIES, LIES, LIES!!!!!!!!!!!!!
after being a Bank of America USAirways Visa holder for nine years, after the suspect imposition of finance charges and late fees to an account that has been on automatic bill pay for years, I finally had to pull the plug on these guys.
Don’t bother calling customer [dis]service to voice your complaint — they will just deny and disavow.
If you have an issue with BofA, write the FTC and file a complaint through the mail, not by internet. I recently filed a complaint regarding my interest rate increase, along with a copy of the letter I received regarding the new interest rate hike and copies of my cc statement, and the FTC forwarded it to the Office of the Comptroller of Currency. I was 100% BofA with a checking, savings, IRA, and credit card account to which I have never been late on a payment. But, BofA used “universal debt” as their excuse to nearly triple my interest rate, meaning they explored my credit report to jump on any change in an attempt to penalize me, obvious by the frequency of their inquiries. The regularity was not what one would call a “periodic” review, as he suggested. My complaint forced the CEO to respond, though his explanation was that he was fully committed to following all lending laws and regulations. Hiding behind the law does not disguise the intent behind his company’s actions. BofA is diligently seeking any excuse to raise interest rates on their customers, obvious by the number of consumer complaints found on the Internet. As a result, they are successfully alienating loyal customers who could eventually close all their accounts in retaliation as I have done. All this, after BofA just received TARP money. I highly disapprove of their exploratory methods to raise interest rates and limit accounts. They are trying to make an extra buck off their customers and found a legal way to do it (while this option of universal debt is still on the table, until the new Credit Card law goes into effect, ending the practice of raising interest rates based on unrelated credit issuers) Do they honestly believe this devious practice will build future customer relations? And when this practice is illegal, will former and current customers remember BofA had chosen this method to demonstrate their “loyalty” to its customers?
When I ran a google search for BofA complaints 650,000 articles came up. Bank of America complaints collected 1,890,000 results. With this many articles on this subject it seems they might have reason to re-evaluate their business practices.
As a longtime, once loyal, customer, I would warn any BofA customer they are not immune to this either, and I would not recommend anyone doing business with this company as they will certainly find a way to penalize you, too.
Any call you make to Bank of America regarding credit card rate will not be to your advantage. They will begin by telling you “we are going to ask a few questions and this might sound like an application, but it is not”. Moments later expect to be taken down a road of prying eyes upon your spending habits regardless of your faithful, always on time credit card payment. They might even try to befriend you and guide you to a Debt management co, all the while behind the scenes they are lowering your credit limit and steadfastedly refusing to lower your interest rate. Your call will be like a day in court with Bank of America henchmen as both judge and jury….oh, goody we caught a struggling, on time customer to add to our quota for the day. Expect to be treated with more respect if you are behind in your payments, this is when they start to fret…oh, dear, we must be nice to this one….if we’re to get a penny.
DO NOT ever call Bank of America, or any other Credit Card Company to try and negotiate a lower interest rate! They will only get “new” information” from you so they can increase your interest and find other ways to punish you! While it is the banks money we use when we use credit cards, they are milking the one’s who actually pay on time in order to recoup losses from those who have lost jobs, can’t pay, etc.. They are also abusing the Bail-out money and finding ways to skirt the law as usual. Bank of America is the worst! CitiBank is second worst and along come the others not far behind.
Two days ago I got a call from a BoA credit specialist. She asked me a ton of questions and went over my credit report with me. She said it was a “routine review”. After the phone call she said well thank you for your time. About five minutes later she calls back and asks me for income verification. I was stunned and I had to ask WHY?! Oh now I was defending ten thousand dollar credit limit that I’ve had for a year. So she gives me a fax number and 72 hours to provide the information.
I tried to fax her to that number and when the fax failed and I called the number it was a College. Well I called the number again and spoke to another BoA rep this time she confirmed the number that I had was correct so I hang up and tried again. Waste of my time…. I called yet again and this time took the name of the rep I spoke to Joe Lupo in the Houston area. He gave me his fax number which was as he said down the hall from him… Well…. the fax did go through but when I checked my account last night it went from a $10,000 credit limit to a $500.00 credit limit.
Other than feeling completely insulted and outraged by the way I am being treated after I have been an immaculate customer to them I was stunned that with my documents my credit limit was reduced 95%!!!
So when I called this morning I am told that my fax was never received.. I am wondering… Are these people lying? I have a fax confirmation that my 26 pages went through. Ok well I spoke to Mark S this morning and he was in Cleaveland. He gave me his fax number and once again… another 26 pages were faxed. He promised to call me at 10:30 to let me know if he got my fax. The time came and went and no phone call. I called back and spoke to yet another rep and I asked the rep to tell me if they had gotten the fax.. he said NO!!!!! WTF is going on at this bank!! Why do we support these banks? They would not be doing business if it wasn’t for us the customer!
Luckily for me I pay off my card every week! If I spend 3k I pay it the next week. So my balance on my BoA account was a credit balance of 53 dollars. These people are insane and what makes no sense is that they are not only doing this to people who are not paying but they are doing this to their best customers who ALWAYS pay on time, more than their minimum payment and have high credit scores.
Bank of America should be ashamed of their practices and they really deserve to go down, crash and burn because they are stealing from their customers in more than just financially. I feel like that earlier post I read cutting up my card in tiny little bits and sending the card to their CEO with a nasty gram of how horrible of a bank they are and how they should change their name to Bank of Bloodsuckers who don’t have any common sense.
BoA just did the try for a lower interest rate gotcha with me! I have a credit score of 760 and have a balance of $3k on my BoA credit card…which has never been late and I always pay more than the minimum. When I called to find out if I could lower my interest rate they took some info from me. Instead of lowering my rate, they lowered my available credit by $32000!! This will bring my credit score down. There was NO talking to a manger or reasoning with them. They kept telling me this was happening because of the ‘current economic climate’. Basically this will turn into a self-fulfilling prophecy of ruining people’s credit and then no one will be able to get loans or insurance, etc because they all have low rates. It’s a bunch of BS! They lost me as a customer for sure!
We all need to take a stand against B of A. Start telling everone you know about this unfair practice. We don’t have to close our credit accounts..but, we should give the credit unions our business. That’s what I am doing. I am telling everyone I can about their unfair practices. Maybe they need to pay back all of the money that they borrowed from “US”…the people they are screwing.
We will not be bullied anymore!
About 6 mos ago I received a letter from BOA stating if i purchased anything on my card my interest rate would go up. well, i didnot and have not. 10/19/09 i received another letter (looking like junk mail) stating they are going up on my interest rate anyway. i called them and did not get a reason why. I was told I could not have an opt out option. I pay my bills before I do anything–never been late. And the only reason I have a balance is I helped my daughter get an education. I’m a single mom with a home–so what do I do now. I hate being threaten either pay my home,car and food or boa. screw you BOA– i’m going to my credit union to see what i can do. I hope BOA goes out of buisness. please everyone who has a BOA card please tear them up and close your account. they’re going to mess up your credit rating one way or another.
My mother and I both have been screwed over by BoA now. I’ll admit that my credit is not great, but I make my payments every month on time and at least the minimum and pay more when I can. I do not have a high credit limit, but when I called to inquire about my card they closed it without telling me. When I called after being declined at the grocery store for a $5 purchase, I was told that my account was closed. I received a letter a week later telling me that any time you call to BoA even if it’s just to have your PIN number changed, have a new card sent to you, get checks for the account, or anything like that they have the right to review your credit. They didn’t even ask me any questions when I called, just told me that I couldn’t get a change in my interest rate. Apparently me calling and asking about lowering my interest rate was a sign of financial hardship. I filed a claim with the BBB and received a call from a lady at BoA and she said that they closed it because of my request to close it and that me calling at all about the interest rate shows a sign of financial hardship. I’m through with them. I’m taking my checking and savings elsewhere.
My mother’s story is a little different. She has a great credit score and has always paid her account on time and way more than the minimum. She received a letter telling her that her interest rate was being hiked up to 27.95%! So, she decided to pay off the balance on it. She received a call after paying off the balance (which was around $20k) that her credit limit was dropped $22500. Their reasoning was because they ‘didn’t like the way she paid’. She was planning on keeping the card because it’s a long standing card on her credit history and was just going to use it for small purchases and pay off each month. She went to use it and it was declined. She called to find out what the problem was and was told the account was closed. It doesn’t make any sense at all why they would completely close her account. She was told again that any time you call BoA that they have the right to review your credit and because she had called 2 times (one of which was returning a call for a message that was left on her home phone AND her cell phone voicemail. The second call was to find out what the problem was with her card), they decided she was not fit financially and canceled.
Bank of America’s practices are getting more and more shady. I understand that we are using the bank’s money when using credit, but that doesn’t justify the unethical practices they are employing.
I opted out of the rate increases when BoA sent me a surprise letter about it. However, I had a gym membership taht aoutmatically took $25 a month. I tried to cancel it in time, but it took 30 days because i had a contract with them, so…Bof A considered my opt out invalid and raised my rate anyway! It seems very unfair and illegal to trap me that way. If I had know I would have closed my account altogehter and taken my owing $25 uo with my gym. Now I’m trapped into paying off my balance with a high interest rate. When I called BofA they were rude and said they could not help me.
BoA charges me 2000% interest. I have a 59 cent charge at a special promotion rate on my card in addition to the normal charges. For some reason BoA calculates interest for it separate than the others. Every month there is a $1.00 finance charge on that 59 cent balance which is their “official” minimum charge. They won’t leave me pay off that 59 cents until the entire card is paid off. So $12 a year on 59 cents is over 2000%. Yes, I’ve complained but all I get is that it’s “standard policy”. Do you think it qualifies for the Book of World Records for “Highest interest legally charged”?
My most recet blog post: http://bit.ly/6kGdo9
January 04
Thank you from Citi: We are increasing your interest rate.
I just got off the phone with Citi. I believe, like all Americans, I helped bail them out from their poor management choices during the onset of the recession. I received my thank you from them stating my interest rate was going to be raised to 20.99%.
These interest rate increases verge on the immoral. They are well above operating costs. They are targeted at good customers who will pay their bills. We are being asked to finance the misfortune of others, the bank and their defaulting customers, not only through our taxes, but through high interest rates and fees to the banks.
After negotiating, I was able to take it down to 18.99%. Still almost 2 points higher than the average reward credit card rate. I acknowledge the good customer service from Tim with whom I spoke. It isn’t his company any more than it is mine I guess. He just works their and I am a minor creditor. Glad he still has a job, but feel for him as he hears from frustrated customers all day. I’m sure he doesn’t get any reasonable compensation for the pain his employer is putting him through.
Well, this card is on the chopping block and will be paid down rapidly. I will miss my American Airline miles, which I was willing to pay a bit more for, but not this much more. Too bad the co-branding partners aren’t stepping in because this type of negative customer experience reflects on them as well.
Some complain about the US becoming a nanny state. Despite congressional action already underway, average consumers need to be protected by these excesses now. If the big banks can’t make money the old fashioned way, then they should be allowed to fail. There isn’t enough value for me to do business with them anymore. Scale was once seen as a way of driving down costs, but it is a way of driving up complexity and creating market systems that fail to serve consumers, employees and the shareholders.
Maybe its time to get credit through a Chinese bank and cut out the middle man.
i recently received a letter stating that bank of america was NOT going to implement this change. did anyone else get this letter?
I have read almost everyone comment on this website among others (it is getting all over the place) before saying anything about how bad, greedy and unprofessional this so called Bank of America is (they do not deserve this name by the way?!).
In short, I have been a customer of this bank for 5 years now (visa credit card with 6000 credit limit). I have been using it in a perfect way: never late, never missed a payment with any creditor, and I have a perfect credit history (10 years with many credit card accounts, all in good standing; two thirds of them have 0 balance). In addition, I have been having a good job for the last ten years and I even recently got a perfect job (PHD level permanent job plus benefits)… Despite all of that, BoV raise regular rate for 9.9 to 23.9 after my promotional rate ended few months ago. I said it is OK, may be they are in a deep whole and they are trying to get out it at any cost… But what shocked me the most is what happened lately : receiving a letter saying that they are reducing my credit from 6000 to 1300!!! after me paying off this card by bringing the balance down to 1100 in two moths periods, thanks to my new job…). I am not going to mention all the usury strategies used in the letter because everyone is sick of it already. What I want to say instead is that: Being an instructor myself, I can use them as a perfect example not only of a Sick Greedy Business but also of A Stupid Business with big BS. They do not realize that when people like myself are capable of paying off balances that fast, this does not mean necessary they represent a credit risk, but simply the opposite; smart pans!!!). If paying off your balances is not good, then what is good??? Bottom line, they are killing themselves by acting the way every one is accurately describing on the net. Here is another lost customer: I closed my checking account few moths ago with them and now my credit card is going to be next very soon. My follow Americans, remember, this is the only language they understand: Do it and you will see how they will come later and beg you to open an account with them; but at that time, do not do it. Do business with those who know what this word means, regardless of the business size…
I would have loved to opt out of the rate increase! But my account is already closed and I’ve been paying the balance off. The agreement is to not use the card, but how do I use an account that was already closed, and how do they triple the rate on a card that is closed and unusable? Their trick, they claim they sent me new cards when the old ones expired many years ago. I never saw them, no charges have been made to my account, so I’m not aware of any new cards. BOA tells me that my new account number won’t appear on my statement until I use the new card. So how do I send a letter to BOA stating I won’t use the account, when I only have one account number on my bill, but they can’t tell me the new account number that is supposedly open and able to be used? In my opinion, they’re lying about the other account number..funny thing is, after going back and forth with them, the name on the account rolled back to my wife’s maiden name, and all transcrips of any of the arguing with BOA have disappeared. I even sent a credit letter request (to the other department), and voila! A credit letter stating the account is closed, with no late payments ever! There is no mention of the other account number that the operators kept insisting was the account with the default rate. The account is now paid, but I would love to have the extra intrest money I paid over the last year returned to me. Never again will I do business with BOA if I can help it!
My husbands credit score was pretty bad when we met 8 years ago, over time we have gotten his credit score up, and also the interest rate was low, now the interest rate is 23.74, legally they can not go over 24.00. This is so ridiculous that we can not purchase anything b/c we don’t have the extra $ to pay no more than the min balance. How will we get the rate down and still be able to use the card for birthdays and Christmas when it is mostly needed. I would really like to pay it off and get one in my name with another company like Citi Cards which are pretty low like a min payment of 40.00 We have paid like 2000.00 every tax season and no one has ever told us to pay just toward principal and not towards the bill. Are we screwed, or is there a way to fix our problems. When I called sometime last year they said that we can go back to our previous rate but, can not charge anything and if we do, it will just go back up! If you ask me, this is BS!
From BOA I was told to pay off imediately and cut up my cards.I did pay it all off so I hope that pleased whoever. When another person called me I explained what your banker had told me. He said that was illegal and I could sue BOA. So, do you want to get sued or do you just want to be nice to me again?
I also have good credit and the Bank of America raised my rate to 27%, yep not a typo, 27%. I am going to pay this thing off as fast as possible and NEVER DO BUSINESS WITH BofA AGAIN! BofA sucks!!!!
I smooth transmitted a impute letter asking (to the remaining department), and voila! A title letter stating the accounting is winking, with no latish payments e’er! There is no mention of the other account come that the operators kept insisting was the relationship with the fail rank. The record is now stipendiary, but I would couple to possess the additional intrest money I stipendiary over the high twelvemonth returned to me. Never again gift I do commercialism with BOA if I can support it!
I went to cash a $187.00 expespense check drawn on BOA.
I am not a BOA customer. Being somewhat familiar with this institutions extortionarry prcatices, I brought driving License and another picture ID as I wanted no delays at the counter. Afetr passing by an armed policeman guarding the banks entrance/exit, I was greeted by the cutomarry rude, over-weight, under educated (and quite probably under paid) teller. Following the anticipated interrogation process, she informed me that there would be a $16.00 check cashing charge, and she would need to take finger prints, and a photograph.
I will omit my response and just say… I declined her offer.
Wasn’t 911 a convenient inconvience?
How quickly did Rome fall as those cracks reduced the suppurting pillars of the middle class from marble to a chalky dust?
Unfortunately I fear that all contributions to this blog are just preaching to the chior.
See you in the ashes.
Cheers
Ahhh! Look at BofA now, just a couple of years later. Karma…sweet Karma! They pulled the same trick on me in 2009 and when I called to say I wouldn’t stand for it, the guy actually had the nerve to comment on the fact that I was going to transfer the balance and would still be in debt…Right, but not to you!! I had the pleasure of cancelling my checking account a few weeks ago. The fee’s were raised to $12 or so. And I have another, newer card with them at 7%…So, I can have over $2000 outstanding on the card and still pay less interest per month than I pay for the checking account fee?! “[Well, Heaven's to Betsy!]…Sir, may I ask why you would want to close your account with us at Bank of America?” I mean, at some point it gets insulting…just how stupid do you think I am? (no comments, please) I’M GLAD TO SEE THEM BARELY STAYING AFLOAT. THEY GOT WAY, WAY TO COCKY! THEY DESERVE TO CRASH AND BURN!