Fixed Rate Option at Bank of America unulaterally breached
in Home Equity Line, without notice.
The Equity Maximizer loan is a Bank of Am. line of credit with a variable rate which can be converted to fixed rate at any time (supposedly).
That is the marketing. That is the disclosure form explanation. These provisions are in the loan contract.
Exception? Any time your line of credit is in "suspension". Can BOA suspend at any time it wishes? Legally, NO. Does BOA suspend transactions on Equity Line accounts in order to deny the consumer the Fixed Rate Option in order to lock them in on a variable rate + interest only repayment plan - YES. Do consumers have a right to refuse payment? YES. This is a breach of contract by Bank of America. When the Bank breaches the loan contract provision as to fixing the rate,
the consumer is under no further legal obligation to pay interest only variable rate repayment terms sent in their billings. You will need to file a Biling Error Dispute. You will need to file notice of breach of contract to the BOA. And you will probably need to go to court to enforce the contract or BOA or enforce a cancellation of the contract for BOA's breach.
On the other hand, if BOA can refuse the fixed rate option whenever it decides to "suspend" an account, then the consumer does not have the right to Fix the Rate AT ANY TIME as marketed by BOA account reps, misrepresentation, which can lead to the contract being found void under applicable State Law in the jurisdiction in which your home is or loan was taken out.
It appears BOA is acting in an arbitrary manner to refuse to fix the rate on request and billing, collecting never ending high interest only payments from consumers. The motive?
You guessed it. And do not forget the leverage of having your home on the line. If you do not agree with BOA and insist on only paying Fixed Rate or refuse to pay the interest only false billings, they'll send you notice of foreclosure. BOA says: we'll force you to accept our breach of contract and fraud.
Only one problem for BOA. The consumer have some leverage too. It is known as a Class Action Lawsuit, which any ONE (1) consumer may bring on behalf of all others similarly situated. Have you heard of Class Actions, BOA. Ken Lewis,
CEO of BOA, has heard of Class Actions before.
A punitive damages claim may also be a problem for the giant bank. When a company does something like this knowingly
or without regard to the consequences, a punitive damage claim may be assessed against BOA by 12 angry jurors - all consumers in one sense or another.
Others interested in a Class Action against Bank of America
for refusing to Fix the Rate on request resutling in overcharges, false charges, or foreclosure threats or acts,
post to this site.