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Bank Of America / interest rate increase

1 CT, United States Review updated:

Today I received a notice from Bank of America (a former MBNA card that I have had for over 10 years) that they are changing my "platinum plus" interest rate from 6.99% to 13.99% and terminating their extended warranty and satisfaction guarantee benefits. This is in addition to raising a multitude of fees and modifying their definition of a foreign transaction. The letter states that the increase is due to "a change in our business practices, and due to the pattern of payments and APR on the account." In reality the pattern is a 10 year old account, never a late payment, $1, 000 balance with a $20, 000 limit and all payments have been at least $100 a month. This seems to be typical of American Corporations nowadays . Do everything right your entire life, then make you pay for the mistakes, misfortunes and frauds of others.

Dj
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Ra
  8th of Apr, 2009
+1 Votes

The exact thing just happened with me. I'm a former MBNA card holder for over 10 years also. They just raised my rate to 15.74% as well as increased fees on just about every item that carries a fee. For example, balance transfer fee went from 3% to 4%. I have had the card for over 10 years and used it extensively. I have never been late on a payment and have carried a balance for most of the 10 years I've had the card. It's unbelievable to me that they do this to "good" customers. They have never lost a penny on me, and I would guess that they've made quite a bit of money off me over the last ten years. I have just notified them that I am not accepting the increase. I will transfer/pay off the current balance and will then be done with them forever. Actually, their timing for doing this was good. I was just starting to look for a new bank to open up a new checking account; my old bank was bought out by someone else and it seemed like a good time to check out other banks. I was just about ready to open up a Bank of America checking account. You can certainly bet that I'm not going to do that now! I just hope that a lot of the other "good" customers who are getting shafted do exactly what I'm doing. I'm sure banks are having a rough time right now, but it doesn't make sense to punish "good" customers.

Thank You.

Soon to be an ex BofA customer

Ha
  8th of Apr, 2009
0 Votes

I took my money out of BofA last year when they decided that matricular cards from mexico were valid forms of ID, when I can go down to my local corner and buy one of them off of an illegal alien.

Ph
  8th of Apr, 2009
+1 Votes

Like Ray, I have two BOA cards (sold from MBNA) with rates that were recently increased by over 50%. The cards were 4.90% and 5.90% fixed, but now they'll be Prime + 6.65% and Prime + 7.75%. The margin alone is more than my old rates! The fees were also inflated sky-high.

Yesterday, I called BOA to ask a rep for an explanation. As I was describing my credit history generally and with these cards - 735 FICO score, no late or missed payments, carrying a balance so they're making money off my accounts, no changes on my TransUnion credit report - she almost cut me off to say, and I quote, "this had nothing to do with [your] credit." She then repeatedly mentioned the "increased cost of lending" as the reason, and enlightened me to the fact that ALL BOA card holders will have newly raised rates. When I called my father to discuss this ridiculousness, he admitted that he, too, had just received a letter regarding a huge rate increase on his BOA credit card. We both have excellent credit, so who at BOA thinks that screwing over their best customers is a good business practice?

I ended up closing the 4.9% card to keep it at this rate until paid off. BOA may see this as a win for them, but remember - more and more people are defaulting on their loans, so theoretically I could still default. I'm almost tempted to default out of spite. I mean, come on! I pay them over $1K each month, with at least $100 of that going straight to finance charges.

Interestingly enough, I work for a financial institution, so I'm well aware that most financial products carry that disclaimer about "we can change around your terms at any time without warning" - but OUR cost of lending hasn't been as impacted since we didn't make the horrible decisions regarding subprime mortgages.

To make a long story short, BOA gets a bailout from the government AND from its card members. They've received an estimated $1 billion last year in fees alone, yet they feel it's necessary to squeeze more money out of their customers. With the government giving them money and now their customers forking over more, I honestly am sorry that the government didn't allow them to go bankrupt. They can rot in hell.

In
  19th of Apr, 2009
0 Votes

Hello to all of you.
I was right in the same boat. I hate Bank of America, yeah, no political correctness here- HATE is the word. When I was a child, my first savings account was with First National bank, which then became Bank of North Carolina, then NCNB then Bank of Hell, I mean Bank of America.

I also had a MBNA card with a 5% rate, which they promptly raised to around 23% after taking over MBNA. I about fell over. I called and the lady of course could not give me a good reason for doing so, so I promptly told her "maybe I just won't pay my bill" and she promptly told me that they had to cancel my card. I told her to go ahead and fortunately was able to pay off the balance (with some effort on my part; I mean I think i owed them around 10k!!!). With that balance there would be no way to ever pay off the balance with interest charges being higher than the principle applied. I told everyone I knew about this, and since then i have heard others complaints.. But then people dont cancel their accounts until it happens directly to them so most people just listened and did nothing. Oh yeah, i had perfect credit, a credit score of over 700 and had never been late with payments.

It is a sad state of affairs when the so called 2nd (?) largest bank in America is totally corrupt.. Frightening. I would not do business with them ever again. I would say CONSUMER BEWARE. Actually, I could go on but am not going to waste another minute of my time . I just hope people at this site, take all of this in stride. IT is NOT a lie, nor embellished in anyway due to any of my doing. I was an innocent MBNA cardholder who got taken. Wish I could get the few months of interest payments they got from me back. They can kiss my ...

I am from North Carolina, but i would not give B of A

Vi
  20th of Apr, 2009
+1 Votes

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, consumeraffairs.com, and placed a copy on wikipedia.org. 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.

In
  25th of Apr, 2009
0 Votes

To Victoria99,
Wondering if they really care.. If they did, they wouldnt be doing this in the first place. But I do admire you for taking the time to write. What goes around will come around, so time will tell. If enough people close their accounts (prob not likely; they wont be able to ) that would affect them. Good Luck. Oh yeah, gotta go call them and close my remaining BofA card that's sitting in a drawer. thanks for the reminder!!!

Pa
  19th of Jul, 2009
+1 Votes

I too was affected by this from Boa although they were a little more creative about the issue with me. I've been a customer since 97 and have had an interest rate in the 5 percent range for quite some time. Additionally I opened up a revoloving credit account with them to pay off some loans from a few years ago. The loans are down to just a couple of thousand from around $30, 000 when I borrowed it and not a single late payment was made. They doubled my interest rate without warning and I didnt notice until just yesterday. I gave them a hard time and they finally reviewed my account. After reviewing the account they dropped my credit line by 1/4 of what it was. Then they told me that I can keep my 5.xx interest rate IF I no longer use the cards and they have fixed my credit to equal my open balances! I also have a business account with them equal to 4x my open debt to them yet they claim they have no ability to check my business balances. Needless to say I'll be closing all of my accounts with bank of america, business and personal. This is how they treat their customer of 12 years? Screw them!

No
  29th of Jul, 2009
+1 Votes

BOA obviously stands for Bullies of America. I forgot to make a payment after their website was malfunctioning. A few days after the payment was due, I received my email statement. Surprisingly, BOA was very forgiving. (Just kidding!!!)
They jacked my interest rate up from 4.99% to 22%. The interest alone on my new payment was over $400.00. I emailed customer service and offered to make the 4.99% payment immediately, and get set up for auto pay at the same time, to insure I wasn't late again. They would have no part of it. They insisted that I PHONE them to discuss a different interest rate, but they absolutely couldn't do it by email. I emailed back, stating that my past experiences with the reps following through, was so poor and frustrating, that I needed any agreement to be in writing. They still refused. Then, WITHOUT MY AUTHORIZATION, they withdrew the amount of the payment that was due from my checking acct.!!! Are they nuts? My last email informed them that they will soon be dealing with PA Consumer Protection. If there is a class action lawsuit against the Bullies of America, please post it on this site and count me in. Thanks.

In
  29th of Jul, 2009
0 Votes

Dear No More Bullies,

WELCOME TO THE CLUB!!!

Ra
  29th of Jul, 2009
+1 Votes

The things that the big banks are doing now is driving away their good customers. They are going to be left with a high percentage of "bad" customers, and it is going to serve them right. I hope that a lot of people who have a long history with credit cards from the big banks do what I'm doing. I'm going to pay off current balances and stay away from using credit cards as much as possible. If I do use a credit card, it is going to be from a credit union or small bank that doesn't gouge customers at every opportunity.

Wh
  11th of Aug, 2009
0 Votes

My interest rate didn't go up as much as everyone else's but I've been so intent on paying the account off that I won't have to worry about in it a couple of months. They can pound sand for all I care. plus, they keep sending me checks to use at an exhorbitant rate. What's up with that?

Ra
  12th of Aug, 2009
+1 Votes

I can't believe they keep sending checks every couple of weeks offering a deal that only an idiot would accept. I have credit cards from several of the major banks. One by one, they've all increased their rates. I had very low rates on some balance transfers from Chase. They couldn't raise the rates because the current rate was good for the life of the balance. However, they did increase my minimum payment to 5% of the outstanding balance. One way or another, all the big banks are going to screw us. I'm working to pay off my balances and then be done with the big banks for the rest of my life. I hope they all go under.

Re
  29th of Aug, 2009
0 Votes

I am writing to complain about the practices of Bank of America. My husband had a stroke almost 4 years ago and during his recovery we accumulated some credit card debt. We were approached by Bank of America with the offer of a balance transfer for lower interest rate which we took. We both have good jobs and have not missed any payments. This July we did not received a bill and posted a late payments as soon as we realized we had missed the due date. Although we understand that we are ultimately responsible, we expected to pay a late fee and move on. Bank of America, however, had different intentions. They raised our rate from 8.9% to 29.9% and last month we paid over $400.00 in interest fees alone. We received a letter from Bank of America letting us know that they would be offering us 3 options:
1- Work with us to reduce our payment
2- Expand time of repayment
3- Debt consolidation
When we called them, they refused to lower our rate, and told us that the only option available was debt consolidation through their trusted debt consolidation agency. This would entail to close all our credit accounts, transfer our debt to their preferred debt consolidator and not be allowed to use any other credit.
In addition, Bank of America has reported us to Equifax – making it impossible for us to transfer our debt to another account.
Had we stayed at 8.9%, we would have continued to pay our account without any problems, however, Bank of America has put our family in a situation of great hardship. So far we are paying their required high interest monthly payment and yet they still won’t consider anything else. We refuse the debt consolidation because we consider transferring our debt to a company we no longer trust absurd - Bank of America is behaving like a loan shark and seeking monopoly over our situation. We have other credit cards and do not have any problems with them.
This happened a week before the new law was passed to protect consumers against such predatory behavior. Interesting enough, second time we called they had changed their greeting to: “If you did not received a bill, you still responsible for paying it on time”- by that I assume that we are not the only ones that did not receive a bill in the month of July. I truly believe we fell victims of a scam.

Ly
  29th of Aug, 2009
-1 Votes

People are already having great difficulties making payments due to our economy. We need to remind businesses such as this "That we bailed them OUT!" Yes, us taxpayers whom you are charging outrageous fees. Tell me what should Bank Of America's credit score be? It is companies such as this that give AMERICA a bad name.

Cr
  29th of Aug, 2009
-1 Votes

Thieves! Bank of America has given you the old switcheroo (like everyone else). You are victims of yet another BAIT AND SWITCH ploy. B of A is known for f---kin over its customers. They do it all the time from their checking accounts to home loans. Open a new account down the street and forget these loan sharks.

Am
  4th of Sep, 2009
0 Votes

Hey. Any credit card company/bank will make your APR go up after a late payment. BOA typically will only offer debt management if you mention you have multiple credit cards accounts in and outside the bank. They gave me the phone number for the company and I did some research. They aren't affiliated. I know you are mad at the banking company but if you call them and let them know you are having a hardship they will offer you a hardship program. They offered me a 5 year program that cut my minimum payment in half and lowered my APR from 24% to a 2.5% fixed rate. I don't get charged any late fees and my APR will never increase. I would look into that if I were you. Oh, and there aren't any hidden gimmicks with the program I'm on. Good luck to you.

Ka
  2nd of Oct, 2009
+1 Votes

I also had my accounts interest rate raised. I was never late on a payment. They siad they raised it because I had the interst set and then used the card. I was a student with no job. I hope they go under for what they have done to everyone. Maybe now they won't have all the raises they had before. I had the card for at least 8 or more years. That is how they repay you! Thanks for nothing Mr.Lewis Honest in Wv.

In
  3rd of Oct, 2009
0 Votes

Kayla,
Isnt it amazing how these big corps who we support don't mind taking us to the cleaners?? I hope what goes around will come around. #$%^&*()_+!!! Pure and simple greed.

De
  19th of Oct, 2009
0 Votes

I know of a company that can settle this debt down to about half of what you currently owe. Send me an email to debtrelief@rocketmail.com

Bo
  20th of Oct, 2009
0 Votes

I have a old MBNA fixed rate balance transfer of $45, 000 and have paid down religiously to currently $29, 000 and my rates were supposed to be fixed until the transfer balance is paid in full. Since BofA bought them out several yrs ago they are telling me recently its now a variable rate. How can they get away with this stuff. I understand if I defaulted, missed or late on payments, but that is not the case.

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