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Bank of America to Increase Rates on 4M Cardholders

Written by admin - 10 Comments

Looks like Bank of America is jumping on the rate-increasing bandwagon…

“Starting with June account statements, any credit-card customer who carries a balance and has an interest rate below 10% will see his or her rate jump into double-digit territory.”

According to notices that cardholders have been receiving, it looks like the sub-10% rates will be jumping to just shy of 14% (possibly higher, I can only go on what’s been reported thus far).

Presumably you’ll be able to opt out of these changes, but that will likely involve agreeing to close your account. Rock, meet hard place.

Source: Yahoo! Finance

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Comments (scroll down to add your own):

  1. I recieved a notice concerning my interest rate and called them today. What a mistake. They reduced my credit limit to just over $200 of my current balance. How are they able to get away with this? I have never been late and have had the account for 6 years.

    They are unbelievable. Asking for credit from the tax payers, but unwilling to give it. Is there anything we can do to stop them?

    Comment by Chris — Apr 17th 2009 @ 5:24 pm
  2. It’s even worse than implied here. I have a 9.99% rate that is going up to 15.74%. So hell yes I’m closing my account, and writing the professional association through which I got the card, suggesting that they cancel their deal with B of A. Fuckers.

    Comment by Michael — Apr 18th 2009 @ 9:39 am
  3. 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.

    Comment by victoria — Apr 20th 2009 @ 10:56 am
  4. I am furious about the letter I received from B of A increasing my rate. I have excellent credit and have never been late on a payment. The rep I spoke with basically told me he was not going to sugar-coat it; that’s just the way it is. Why do those of us who are good credit risks have to be penalized for those who are not?? Obviously, I am looking into other options.

    Comment by karen — Apr 20th 2009 @ 5:19 pm
  5. Karen, I think you hit the nail on the head indicating that the people who have been paying and in good standing are now being “penalized for those who weren’t” in addition to all that bail out money. It feels like Bank Of America is robbing me of more than $250.00 a month now in interest in addition to the bailout money that the taxpayers had to pay without our permission. I’m so dazed over how this is all being handled. It’s not only unethical but it should be illegal!

    Comment by victoria — Apr 21st 2009 @ 8:18 am
  6. Well, I’ve never paid them interest but the gall of them to try to raise the interest rate as a good customer since 1996, I just called them and canceled my account. When asked why, I told Ed that they took my tax money and I will not stand for them to charge me more if I don’t pay my bill off. Sure come to me and borrow without my consent then be stingy to lend to me! Nope…snip-snip to the old card!

    Comment by jeff — Apr 23rd 2009 @ 5:18 pm
  7. Just received my credit card bill that usually runs 124 a month they jacked it up to 314 a month. I thought the loan sharks were gone no they are here and looks like it is legal to be crooked. I hope everyone closes their account in the whole country. We bail them out then they turn around and really screw us. What is happening to our country. Come on 2012 and put us all out of our misery. Aug 23,2009 By the way never late and always more then I have to.

    Comment by Liz Johnson — Aug 23rd 2009 @ 11:17 pm
  8. I’d like to formally invite the entire group of 4,000,000 Bank of America customers to collectively file bankruptcy.

    After that, we should all ban together to file a class action suit against the company.

    Got my letter yesterday advising that my fixed rate gold loan through Bank of America is being switched to a variable rate tied to Prime. Like millions of others, I am hearing the same thing when I call and tell them I did NOT sign up for a variable loan. They are saying that they retained the right to alter the fixed rate loan at any time in the fine print of their loan contract.

    The problem is, many thousands of us established these loans 2 years ago when they were being HEAVILY marketed over the phone.

    Everything I received afterwards indicates my “fixed rate” loan and I even have one of the original mailings I received from them pumping up their loan program “the best part is, this is a fixed rate option”.

    The best part is when you call to talk about these issues. They ask you to verify your ID but when you tell them what you’re calling about, they ask you to provide your last payment date and amount, the current balance on the loan, the date the loan was established, etc. This after you’ve provided your social, the loan number and answered the security question.

    That “security” practice is in place to do two things. Get you to hang up on the phone call you just spent 15 minutes on hold for and then discourage you from making another 15 minute hold pattern just to enjoy that final fight to the death where you’re told “sorry, but there’s really nothing we can do”.

    To hell with all of Bank of America I say. Nothing better than criminals; every last damned one of them!

    I will vote for Obama again and I will push my legislators to end Presidential term limits so that we can keep him in office however long it takes to destroy these corrupt business pirates in the financial services industries once and for all!

    Comment by Tito — Oct 20th 2009 @ 12:05 pm
  9. does anybody have the e-mail address of Brian Moynihan, CEO of Bank of America??

    Comment by Catherine — Jan 19th 2010 @ 12:50 pm
  10. Tito,

    Enjoyed your comments! What Bank of America has done is corrupt and yet they continue to do business as usual, which in my opinion is discouraging. Meanwhile, those who suffer are the ones who were long term paying customers who now are finding that they are unable to pay due to all the increases.

    The relief that is to be given to those who were credit card holders most definately didn’t help those who have been side blinded by the increases. Anyhow, I’m sure there will be some loop-hole when the time comes for them to “put it to” the customer if they want. That’s just how society works….sadly.

    Comment by victoria — Jan 21st 2010 @ 6:28 am

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