Bank of America Raising Credit Card Interest Rates?

April 14th, 2009 at 4:49 pm by under Business, Turn to 2, Uncategorized

Oh yeah, that’s word from banking officials who seemingly need your money to recoup their losses.  About a week ago, I got a letter in the mail from B of A saying they were going to raise my interest rates from about 9%to a whopping 20.74%!!!!!!  I ’bout jumped out of my pants when I read that.  I immediately called the company to see what the problem was.  I thought, maybe, I had missed a payment or had paid late.  Usually, that’s one way credit card companies can get you.  However, I remembered that I have automatic withdrawals coming from my bank account.  Well, after a short wait, the account representatitve with B of A told me they could raise my rate at any time if they felt it was necessary.  I told them I pay more than the minimum every month and on time.  She told me, “Sir, we’re all having tough times.”  My thought…punish everyone?  She told me I could keep my current rate but all I could do is pay off the card.  If I used it, the interest rate would jump automatically. 

A couple of days later, I was at work when the story crossed the wire again.  This time I read they’re going to raise interest rates on anyone who carries a balance.  I think B of A is crazy in this one.  They are forcing me, and others, to pay off the card instead of making money from the interest rate.  What, are they going to collect from people who don’t pay or pay sporadically?  Plus, I have a problem with them possibly getting money from the government and from their customers.  It’s double dipping in a way to recoup their losses during their poor decision making skills of green lighting bad home loans.  I wonder if other banks will follow suit.  I do know this, me and a few of my coworkers have decided to drop B of A like a bad habit!

12 Responses to “Bank of America Raising Credit Card Interest Rates?”

  1. Michele says:

    Same thing happened to me with both B of A and Capital One. Never late, never over the limit, customer of theirs for years, etc., and Capital One notified me they were raising the rate from 7.9 fixed to 17.9 variable. I paid them off before the rate went up, and because I rejected the new terms, they closed the account. I was so angry because they used the excuse in their notification letter “extreme economic conditions” and other B.S. At that point, I didn’t care if the account closed or if it dinged my credit rating — that is something that really makes me angry — why should MY credit rating be impacted because I no longer want to do business with a company that resorts to sleazy gouging to try to make up for all their bad decisions?? Bank of America’s rate increase wasn’t as severe (7.9% to 13 something); however, when I called them to discuss their decision and express that it was not right, their agent offered me a “solution,” which was another card at 9%. I told him, “No, why would I want another product from you that you would pull the same thing on in a few months and raise the rate on it, too??” And, after I expressed my disgust with them and how what they are doing is not right, he replied, “Well, that’s what happens when you borrow money. . . ” I was so angry when he said that. I am getting ready to pay them off. I understand credit card agreements state they have the right to change rates, but more than doubling them is ridiculous. I hope the customers of these banks never forget this and never do business with them again.

  2. Larry Linder says:

    BANK is a new four letter word. There is nothing you can do about it because it is driven the FED who want all unsecured debt gone. They are applying a new formula to accounts that never mattered. In the program they use you past history of payment does not count. You can be the best coustomer and the worst dead beet and it all the same to them. In two years the Banks will be out looking for customers. I am becoming debt free and I will tell them to go jump in the lake.
    You have to remember that the people making the decision is a Colege Professor and has never made one once of GNP in his life. Never solicited a contract, never built anything, never delivered anything, never made pay roll and is now telling business they don’t have a line of credit because of the rules change retoactively to old reliable accounts.
    These people have mighty thin resumes and have been on the dole all of their lives.
    If you can stand to wait the blame will be put on them and such as the great BMO, Harry Reed, Nancy Depression. How an ignorant Federal Reserve chairman destroyed the greatest economy on the planet. — The list will go on.

    Its OK for a bull shitter to bull shit a bull shitter but to try to snow a snow man is something else.
    Another truth of life is that you can never pay too much but you can buy too soon.

  3. LPPTLP says:

    Same thing happened to us… I angrily closed the account and will do my best to pay it off as soon as possible. It’s too bad that all of these credit card companies are gouging middle class America to make up for their bad decisions. We had an issue with our Chase account as well, raised our 2% minimum payment to a whopping 5%! This was their way of screwing those of us who took advantage of their special rate promotions in the past. Now, we are sitting here with no credit cards… which is fine with me!

  4. Cyprus says:

    “well, we all know theirs huge benefits to register a company in Cyprus, lol. My account pointed me to a few blogs on the net which i’m rather reluctant to check out as i’ve been so busy lately”

  5. Richar Ryder says:

    I just received a similar letter from CitiBank, after 25 years of on-time payments. Only they are raising the rate to 29.99% (their default rate). They had previously raised the rate to 19.99%, so this is a 10% rate hike. Then they go on to state that they will be offering a 10% rebate of the interest charges if the bills are paid on time. At first glance, it may seem like the 10% rebate will offset the hike, but the rebate is only on the finance charges. The 10% hike is on the full balance. So, the net result is a 7% rate hike. They are probably counting on the public not noticing this little deception.
    What these companies are doing is using (abusing) the customers who do pay on time, in order to make up for the losses their past greed led to. They feel they can do this because they know we will pay our debt to preserve our credit score. They will push and push as long as we continue to take it and make our payments.
    Well, this time they have pushed too far. If my good credit score earns me the same rate as someone who has defaulted on their obligations, then what is the sense in protecting my credit score? Instead of following their recommended option and cancelling my card to repay at my previous rate, I am going to default on my CitiBank debt. I lose my credit score (a meaningless loss in this environment) and they lose everything I owe them. The 19.99% interest they were receiving. The 29.99% interest they greedily sought. And the entire principal that I owed them, which would have been paid back over time had they not pulled a stunt like this.
    Consumers today feel powerless. That is not so. If we are willing to band together and refuse to pay these obscene charges until these companies return to reality, we can force them to rethink their policies. If they go a few months without any payments coming in, we can get their attention. I will gladly pay any legitimate debt at a reasonable interest rate, but I refuse to stand for something like this. They use the threat of trashing my credit score. If my credit score means they can charge me 29.99%, I say let them trash it. It’s useless to me, just as abusing their customers will, hopefully, prove useless to them.
    These companies need to see that making it more difficult or more distasteful for their customers to repay their debts is counter-productive. Customers who were on the edge will be lost. They need to take the customers who pay their debts and treat them fairly, so they will continue to pay. For the customers who are not paying reliably, work with them to return them to being valuable customers. If you treat us this way, abusing and alienating your customers, you will get nothing. 10% or 20% margin on a loan, plus the repayment of the principal, certainly is better than losing everything. Credit card companies have a phrase they like to use called ‘universal default’. It is time that consumers band together and refuse to pay these ridiculous fees and interest rates. Let’s show them what universal default really means – consumers fighting back by defaulting universally on abusive loan terms.

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