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Bank Of America / Fia Card Services / raising interest rates for no good reason!

1 United States Review updated:

Three years ago I opened a credit card account with Bank Of America. My original agreement was an interest rate of 0% for twelve months then after the interest would be 8.9%. Well after just 9 months my interest rate went from 0 to 12.9 %. Then on month 12 Bank of America informed me that FIA Card Services would manage my account and that my interest rate would be raising to 14.9 %. Then on month 15 they raised my interest rate to 17.9 % and then again on month 24 they raise it to my current rate of 18.9 %. Now I received a notice that my annual interest rate will be raising to 27.99% because of info contained in my TransUnion Credit Report, I contacted TransUnion to receive a copy of my credit report to find out exactly what info they are basing this interest rate hike on. I have perfect credit according to my local bank that I have loans with. I have never missed a payment or been late with a payment to Bank OF America. This whole experience with BOA and FIA has been deplorable. I have an account with Discover Card and I have had an excellent experience with them so far. I would not recommend Bank Of America to anyone. Loan Sharks for sure!

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  • Ru
      23rd of Aug, 2007
    Bank Of America - Interest rate nearly triples
    United States

    I have a credit card with Bank of America and recently ran into some financial issues after a family concern. When I spoke to the bank they agreed to work with me.

    On Aug 6, 2007 I was sent a letter by Reginald Miles who said if I paid $65 by August 23rd (today), that would help me from falling further back. I received calls daily, sometimes 3-4 a day.

    So I spoke to Bank of America and advised I was prepared to pay $800 over 2 payments in the next week. They assurred me that would get me back in good graces. So I paid $800 between Aug 8th and August 14th.

    Then today I got a statement and my APR went from 12% to 30.24%

    when I called for asistance a man named Ben on their 800# said he had the final say and nothing could be done. I asked for a supervisor and he said again, he was the "final say".

    Bank of America is worse than a loan shark and when I tried to work something out, they declined any assistance.

    Don't ever get involved with Bank of America because they have a long history of ripping off their customers. I have been in touch with the local ABC affiliate who will include a copy of my statement showing the 30.24% in their upcoming series on "Credit Card rip offs"

    0 Votes
  • Je
      29th of Jan, 2008
    Bank of AmericaFIA Card Service - Ridiculous interest rate!
    Bank of America
    Rhode Island
    United States

    I have a Bank of America Power Rewards Card provided thru FIA Card Services based out of Wilmington, Delaware. I received a letter in the mail recently telling me that my rate would be raised from 19 percent (which was already outrageous) to 27.99%. I have an excellent record of payment and make more than minimum payments on my credit cards. I was very angry to receive this notice. According to the notice, information was acquired via TransUnion which precipitated the increase. I have NEVER made a late payment to this card and I have always payed more than the minimum payment on a monthly basis for at least 4 years. I have now written the required note to reject the amendment. This means that after February 28th, I will not be able to use this card otherwise it will default to the 27.99 interest rate. THIS IS 24 POINTS HIGHER THAN THE CURRENT FEDERAL RESERVE BANK INTEREST RATE (3.5 as of this writing)!!! NOT EVEN A LAS VEGAS LOAN SHARK WOULD VIG AS HIGH AS THIS! I will be paying this card off and closing it immediately. To take money from hard working people who actually make their payments on time to their outstanding debts is beyond despicable and deplorable. These heartless organizations are not deserving of our investment. My only hope is that this move will diminish their customer base and drive their organization along with their vampiric practices right into the grave of bankruptcy.

    0 Votes
  • Am
      30th of Jan, 2008

    The exact thing happened to me. The letter said I have the right to refuse the increase but I can never use it.

    0 Votes
  • Ry
      9th of Feb, 2008

    Whine, whine, whine... I highly doubt that your credit is "impeccable" if your rate was raised. Everyone thinks there credit it perfect, everyone thinks they deserve to pay 0% forever, and everyone thinks they are the "model customer". Interest rates aren't raised arbitrarily, they are raised because you have delinquency, extremely high amounts of debt, you use extremely high amounts of cash on your cards, and/or payment history. People like you make me sick that come on here to bash a company's name by telling complete lies. You know your credit probably sucks. You probably have 12 foreclosures or 100k in debt. Don't tell people you are better than you are.

    -2 Votes
  • Pa
      9th of Feb, 2008

    According to an article by Business Week dated just 2 days ago titled "A Credit Card You Want To Toss", Bank of America is indeed increasing rates for no apparent reason. I currently pay 16.25% with them and if they jack my rate up, I'll be done with them. I may cancel my account anyway just out of principle.

    0 Votes
  • Sc
      9th of Feb, 2008

    Well to bring everyone up to speed on this subject. I managed to get my credit report from Trans Union. They have lowered my credit score by about 40 points from 728 to 688 which effectively gives me a D rating simply because of high balances on the only two credit cards I own. First is the Bank of America card the credit limit is $5500, my balance is $4945 and the second is Discover Card the credit limit is $3000, my balance is $2750. These two card are the only debt that I am carrying now. I don't have a mortgage, car loan, or any delinquencies. All payments to these cards have been made on time or in advance with more than the minimum payment. Hell I've even had the same car insurance for over eight years now. There was a time in the past I would have been considered a model credit customer.

    I did notice something peculiar in my credit report where it list companies who request info about your report on a monthly basis. For the last 2 years BOA has check my report each and every month, once they checked it twice in one month. Sounds to me like they were looking for any reason possible to raise my rate. Also from what I've learned, the more companies check your credit report it actually causes your score to lower. Nice game they got going, huh?

    I have written BOA/FIA a letter stating that I didn't agree with their rate increase, so if they stay true to the letter that I recieved my rate will not increase but I cannot use my account, for if I do the rate will increase. Believe me I have no plans on ever using that BOA card again, it has been destroyed. And next month I will be closing that account permanently.

    As for my Discover Card, this company has been excellent so far. Really professional and they don't have some flunky side business strong arming people like a bunch of Mobb Thugs. I will recommend Discover Card to everyone. Steer clear of BOA it's a horrific company!

    -1 Votes
  • Mi
      12th of Feb, 2008

    More people need to talk to their local news and continue talking to their local news about these things with Bank of America. Enough people can bring them down. Without continued business and creating outrageous rates that cause their customers the inability to pay them back....................they will go under.

    0 Votes
  • Bl
      25th of Feb, 2008

    You are misinformed on a couple of points.

    "Also from what I've learned, the more companies check your credit report it actually causes your score to lower. Nice game they got going, huh?"

    There are 2 types of inquiries.
    1. Hard inquiries like applying for a mortgage, auto loan or credit card are one type.
    2. Soft inquires. When you check your report or when open accounts check your report. All credit card companies run a check every month.

    This DOES NOT effect your score.

    Your credit score went down because it sounds like your debt to credit ratio is too high. And also since you do not have much credit history you aren't getting any points for establish history.

    If you take 2 people with exactly the same credit report and one has a mortgage and one doesn't. The one with a mortgage will have a higher score, because it shows a history that you are capable of managing a monthly payment.

    -1 Votes
  • An
      29th of Mar, 2008

    As a credit analyst, let me explain a little further the facts you've mentioned, and separate them from your perceptions and general myth. Firstly, you note the available credit lines and the balances at the time the credit bureau was pulled. Before getting into calculations, a general rule of thumb is that you should never utilize more than 50% of your available credit. That's really pushing it, a healthy percentage should be less than 40 at any given time. You say these are your only two debts you're carrying, and no other financing records to speak of, like mortgages, auto loans, etc. This speaks to a lack of credit references, which can bring down your credit score. Now, let's add up your credit lines, which is called "available credit." $8500 between your two creditors. Next, let's add up your balances at the time the bureau was pulled: $7695. Quick math? 90.53% of your available credit is used. Remember that you should never utilize more than 50%? You're almost 100% utilized, on two trades. Few trades to speak of. A lender will look at this and say you are poorly managing what little credit you have experience with ... keep in mind that according to Fair Issac, 30% of your credit rating is this ratio, called Utilization.

    I'm not saying you're a bad customer, by any length. You say you've never had any delinquencies on your payment history, which is outstanding, and quite rare.

    Also, a note about the numerous 'inquires' you speak of by Bank of America. Being a lender of their size and managing as many credit customers as they do, I can only imagine the level of sophisticated credit software they must employ to keep their heads above water. Keep in mind that anyone with whom you have an account can check your credit at any time; your opening the account authorizes them to do so. There are 9 permissable reasons to pull a credit bureau, some of which are Employment, Collections, Child Care, Application for Credit, Assessment of Risk, Insurance Underwriting, and Licensing. Also, there are two types of pulls to your credit, which are usually referred to as "hard" and "soft" pulls. A "hard" pull is you applying for something -- it will be on your bureau for anyone else to see when they review, and will impact your credit scoring. A "soft" pull, however, is allowed by anyone with whom you currently have an account and can only be seen by the lender themselves, as well as you, the person about whom the credit bureau is describing. So when you pull your own credit, of course you see many inquiries -- you'll see absolutely every time someone's requested it. If you were to apply for an auto loan, however -- that lender would not see those inquiries unless you are requesting credit. Also, inquires only count for 10% of your credit scoring, so don't worry so much about it either way.

    Another large impact to your credit score, which is a numerical indicator of your credit worthiness, is how diversified your debt is. If all you have are department store cards, that's not a great way to decide if you can manage a major credit card or a 30-year fixed mortgage for $200K. Add a little spice to your credit report .. finance something! Show that you can manage an installment loan, a Gap card, your BOA credit card, your Discover credit card, AND a 15- or 30-yr mortgage! This is the way to make the credit bureau DEFEND you, not IMPEDE you. Keep in mind ... a lendor is not basing their decision on your character, or whether or not they think your attractive, or how much money you have. They want to know that when you borrow money, you pay it back as responsibly and as quickly as possible.

    0 Votes
  • Sa
      18th of Apr, 2008
    Bank Of America - Over Charges
    Bank Of America
    United States

    I Made a Loan With 3.99% for 6 Months, each month always and time I never late. My pay due is in the 21 each month, so I made one payment $600.00, on march 11. I made my final amount due on march 14 with all my incometax. Now Bank of America Customer service still try to charge more and my Credit Card. and I hope the recording what they said. so I need fix this problem if not I want to cancel my Direct Deposit and Changes morgage and Checking account to another Bank. If they don' t fiw the problem they made for me,


    0 Votes
  • Sa
      18th of Apr, 2008

    I Made a Loan With 3.99% for 6 Months, each month always and time I never late. My pay due is in the 21 each month, so I made one payment $600.00, on march 11. I made my final amount due on march 14 with all my incometax. Now Bank of America Customer service still try to charge more and my Credit Card. and I hope the recording what they said. so I need fix this problem if not I want to cancel my Direct Deposit and Changes morgage and Checking account to another Bank. If they don' t fiw the problem they made for me,


    0 Votes
  • An
      8th of May, 2008

    I had something very similar happen to me with this company. I had a long relationship with this company holding a credit card. I received a notice that they were increasing my Signature Card interest rate from 3.99% to 24.99%. After calling to question why, I was told that the bank "reserves the right to increase the APR based on your payment history and credit score." After getting some information, I was told Trans Union was the reporting agency, and there was no history over the last 5 years of late payments, missed payments, over-the0linit fees, or any negative information.

    When I reviewed my credit reports from all three companies, my credit score had stayed level or INCREASED, ranging in the high 790's to low 820's. What had occurred is that someone had opened a checking account in my name at a Bank of America, and that the account had been fraudulent. It was closed and taken care of through the authorities.

    I closed the account, and payed or transfered the balance to other programs. Several months later, I started receiving multiple offers from this company to open a new "Signature Visa Card" at the new rate of 7.99%. When I called the company to ask if they would again raise the rates for no apparent reason, the representative reported, " [the bank] reserves the right to increase the APR based on your payment history and credit score."

    I will not do business with this type of company, and obviously by the multiple reports of this bank's activities, this is a standard operating procedure. I would be very wary of this type of "customer service institution".

    -1 Votes
  • Ro
      9th of Jun, 2008
    Bank Of America - credit card interst rate
    1025 Congress Street
    United States
    Phone: (207) 874-9013

    Sudden increase in interst rate from 7.9% to 29.5% Based on two instances.

    Bank of America claimed I made a late payment, Although it was made on the due date at a BOA branch. Bank claims it is not the due date that counts, of course, but the date transaction is recorded. That as I am sure you've heard before is down right sleazy.

    Made a payment 4 days ahead of due date.
    I did not have bill with me so I guessed at amount due. I underestimated by $3.00.

    they recorded payment as not made.

    As a result of the banks action my monthly payment will be more than I can pay, thus throwing my credit rating down the tube.

    What purpose can that possibly serve?

    I have to assume that either the BOA is either very dumb or very callous. I think both. Regardless, it is my understanding that I have to notify FIA card services that I refuse to accept this vindictive interest rate.

    0 Votes
  • Je
      21st of Jul, 2008

    It is common credit card practice for banks to charge a delinquency rate, that is a higher rate for accounts that show 2 payments past due.

    A payment is considered on time when the minimum payment is received in full by the duedate. While the branch may have made the payment, they may have been on the next business day. Also, even though it was only by a small amount, underpaying the minimum payment due to considered a late payment, because you didn't meet the minimum.

    Technically, BoA is right. Whether or not they should take these things into consideration when reviewing the account is their decision.

    +1 Votes
  • Kr
      1st of Nov, 2008

    They probably won't. They will tell you there is nothing they can do just so the can gouge you of more of your money. They just did it to me.

    0 Votes
  • Al
      23rd of Nov, 2008

    i have gotten nasty via emails with customer service and tore into them with very profane language and i had a customer service rep tell me to that if i dont stop they will refer my emails to corporate security and have my accounts closed. i kept doing it and now one of them has told me that this is not acceptable and for me to find another bank but he or she this time unlike the other times didnt identify themselves, but just signed it "boa". This is a very pleasurable experience. Oh and hey ryan davis that posted up above, do you work for boa or do you just like to lick there shoes you pole glider.

    0 Votes
  • Pf
      26th of Nov, 2008

    The same thing has also happened to me and I have had two credit cards with Bank of America for over 15 years. Never a late payment, over the limit, etc. I also did a balance transfer from a high interest card to BOA with 0% interest for 12 months and then 7.9 for the life of the balance. Well just last month, they raised my interest to 21.99% because of "something" in my Trans Union credit report. It seems like it doesn't matter if you have excellent payment history or not, they will get you one way or the other. I am getting ready to transfer or to try to transfer to Discovermotiva. They sent an excellent offer in the mail of 0% until Dec. 2009 and 3.99 on bal transfers until 2012. I am glad to hear others with the same complaint. I thought it was just me.

    -1 Votes
  • Al
      28th of Jan, 2009

    Even former employees get it!

    I am a former Merrill Lynch employee at the Private Client Department on 153 East, 53rd Street, Ny, Ny, 10022 who is currently in job transition to another company at the moment. I have 10 years banking experience as a Financial Advisor and hold the following qualifications:
    BA (Hons) Law & Economics
    MBA (Finance)
    NASD Series 7, 63, 65, 52
    Until yesterday I also had two Credit Cards:
    1) Bank of America Platinum VISA Limit $16, 500
    2) Merrill Lynch + Card VISA Limit $25, 000
    Both fully paid with no balance every month.
    Events: I called 1.800.732.9194 on Tuesday 27th of January 2009 Aprox at 6pm to discuss if it was possible to get a lower rate on my cards.
    The representative on the phone started asking me a bunch of personal questions in a very conceiting manner and tone, and when I told him I was in job transition he said. "Oh, so you’re not working and we gave you such big limit! I'm closing your accounts!” And without letting me speak he clicked the phone. I thought this was a bad joke at first until I tried to use my card today and it was declined. I have since found out that both my cards have been canceled. This is preposterous, and to think I have had the card since 2002 with never a single late payment makes no sense. I tried calling a manager back and after I told him the story today he put me on hold said he would take care of it and eventually the phone clicked. I called back again and someone else started again the phone marathon, until I was clicked again. Enough, so that’s why I want to pursue different means through BBB. I was wondering what if these where my only cards and all of a sudden at a click of a button they canceled my credit after I spent 10 years building up strong credit and high limits. It must be illegal? I have not shown any cause to the company for concern and I'm definitely not a sub-prime customer that they have lent too and lost millions of dollars to date already.
    Secondly, I was also informed that this affects my credit score negatively since it’s a card from 2002 with a long history.
    Both this employee and manager should be fired and I should be written an apology and restituted to my full limits and they should inform the credit score companies that this is their mistake

    0 Votes
  • Je
      6th of Feb, 2009

    I wish B0A go bankrupt in 2009. GOD.. please listen to my prayer.

    -1 Votes
  • Gr
      18th of Feb, 2009

    I just found out that Regions credit card was bought out by Bank of America. I called to ask if I could have the interest rate lowered.
    I have an excellent credit history and payment history wit this company. The more then rude lady on the phone would not even allow me to speak with a credit annalist she stated "they won't answer the phone" WHAT !!! What kind of company am I dealing with. I won't be using this racked anymore. FIA Card Services P.O. Box 15019 Wilmington DE 19886-5019 1-800-362-6299 I encourage everyone to call and ask if they can negotiate their interest rates just for the fun of it. Maybe the credit department will start taking calls.

    -1 Votes

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