- This topic has 18 replies, 1 voice, and was last updated 16 years, 10 months ago by .
-
Posts
-
boy, it pays to read your “junk mail”! i must have been under a rock the past couple weeks or something, because i was cleaning up yesterday, going through my junk mail, sales flyers etc. and found a piece of mail from BOA in a plain envelope. i figured it was just more junk like loan offers or something that i’m not eligible for, but i opened it anyway. well, did i get a fright that chilled me to my bones!!! bank of america, due to the state of the economy, high credit balances on most peoples accounts, etc. is super duper raising their credit card apr rates for every single customer for all previous and new transactions of any type. mine is going up to a whopping, stomach turning 27.99% “effective on the first day following your statement closing date in march 2008”!! that’s double my old rate!
now, it didn’t say this that clearly in the mailing, like how i did above, and i couldn’t find anything about it on their website, so i called and spoke with a real human being that i felt confident in. she confirmed the above info that this applied to every one of their 580,000 card holders and for every type of transaction.
however, you do NOT have to accept the rate hike…here’s the thing, you must write a letter to the indicated department by the end of february stating that you do not want the rate hike. your card will maintain its current apr, BUT you should not use your card at all after that point. the card WILL remain active and you will still get a monthly bill, and you can pay your bill monthly (as opposed to payment due upon receipt), but you do not use the card. if something crazy happens and you DO use the card, it IS still active and useable, but then they will assume you agree to the rate hike and your card instantly will get the high apr.
i asked the lady if she felt this would be implemented industry wide but she heard nothing of that as of yet.
anyhoo, bottom line, i just wanted to pass this on to you guys, as i know alot of folks here are tight on funds and we love to buy our windstones still. i myself carry an unpleasant balance on my BOA card, but i still use it and pay on it as best i can. if i had to pay that high apr on the whole balance, i wouldn’t be able to financially recover unless i sold all my windstones, which i really would hate to do. i just wanted to let you guys know this in case any of you are cardholders with them. the woman i spoke with recommended writing the letter, not using your card but paying on your balance if you have one, then call customer service in june or july and see what then can do for you offerwise in regards to a better apr based on your credit and your payoff rate with them. they were hoping for better economic stability etc. by summer, to where they could begin to maybe loosen their belts again a little.
again, i just wanted to share with you guys this info as i know the economy is bad, we have little money and have been relying on our cards more. i didn’t want to see anyone get in a situation here if you didn’t open that piece of mail like i did until yesterday. my boyfriend threw his out without another thought, never even opened it. if you need the address you can message me for it, or call BOAs customer service to ask more questions , etc. i hope you god this isn’t the new trend for all the credit card companies! that would be awful! this alone is really going to effect how i spend and my ability to pay for stuff. watch out for yourselves folks! 🙂It seems you are not alone…..
http://www.creditbloggers.com/2008/01/its-baaack-bank.html
That’s a very nice way to treat your loyal customers. 😡
wow thanks for the link!! that explains a lot, thank you!!!!! yeah, what a way to treat your customers! i banked with them since 1998, shame on them! that site seems to show that the rate varies a little based on your balance, but it doesn’t look like any rate exists under 20% or so. freekin’ wow!
Has anyone heard if Citi Cards is doing anything like this? I haven’t seen anything from them in the mail, but they are the ones my husband and I have a credit card through. It currently has a fixed 9.9% APR. We very seldomly use it, but it has a balance on it that we are trying to pay off right now. Once our tax return comes in that balance should be gone, but still I don’t want to use the card again if the rate is going to go up on us.
So this is only for CC’s right? I only have a checking account and a debit card which draws from that checking account with BOA. I have no credit cards with anyone. They were paid off years ago and I cut them up. Using my debit card from BOA is the same as if I write a check. So Im not affected right? I mean, I dont get monthly bills, just a monthly statement so I can balance my checkbook. Just want to be sure and thanks for the info!
as far as i know its just credit cards, but then again i don’t do checking with them. i think the main thing it has to do with is the (high) standing balances with the credit cards. you could call customer service just to be safe, but i don’t see anywhere that they could charge you, unless you have overdraft privileges on your checking account and if you owe a balance on that overdraft line.
i sincerely hope other card companies don’t inflict this.. i have a citibank card too and i look now to make that my main card, so i’d just die if that card got the high apr too. gah! i know citibank was having financial difficulties, but heard nothing about them changing rates. hopefully they’ll be smart and not change rates, just pick up the fleeing BOA folks to make up for what revenue they need. lol.What the…I think I’m going back to check my mail again. Thanks for the heads up!
While hiding somewhere in my head I'm on the lookout for white oriental dragons! Please let me know if you know of any available. Thank you!
This exact thing happened to many holders of the Capital One cards about a year ago. I opted out like you said you could and it’s been great. It forces me not to use the card and I still retained the low percentage for my balance that will take awhile to pay off. In the Capital One situation, if ANY transaction went through I would end up paying the higher rate. Also, once the balance is payed off (and I don’t notify them that I accept the new rate) my account will be automatically closed. Too bad, they lost a life-long client. I really liked them until then.
As to the “state of the economy…” it’s something that everyone should be taking a close look at. Most banks now are even limiting how much cash you can withdraw at one time and for any type of wire transfers. There are some on the internet who say that we will be seeing things get worse come summer, but who can really say? Just keep a heads up.
Wow, I hadn’t heard about that. I haven’t received anything from them for notification, but my mail’s a bit behind, so who knows. Pity… they’re my best rate (9.73%), even better than my USAA card. I was about to pay off a higher-interest card, but it looks like I may be paying this one off instead and putting it away (since it dings your credit to cancel a good-standing account).
I just hope they’re not going to try to screw around with the BofA Government cards. I’m gonna be pissed if the government even allows that, since that’s the required card to use on any TDYs. I already don’t like that they hand out credit cards to all these new airmen and don’t teach them anything about budgeting. Too many young military folks are way over their heads in debt.
You’re welcome, tf: -)
Peg, I searched on the creditbloggers.com sight and nothing came up regarding Citicards raising their interest rates.
PT, I think you are ok if you just have a bank account with BOA. I believe they raised the rates for bounced checks and stuff like that, but that’s it as far as I know…
The actions of BOA and Capital One may very well bite them in the @$$ in the long run. People have long memories when it comes to their money and they will probably find that people go with other companies after their balances are paid off. I know I would go elsewhere or try to get on a cash basis like PT (hope springs eternal! lol).
Thanks for that. I am gonna close that account. It used to be an MBNA account but I guess they were bought out… I have not gotten a letter… does anyone know if thats maybe because mine used to be MBNA?
This would be why I’m considering a consolidation loan from the bank to pay off my two cards. at $100 a month I can have the debt gone in 4 years or less instead of treading water with these stupid card companies and their interest rates.
Scary. I’m glad I pay my card off in full each month! The credit card company hates me because they don’t make a penny off of me this way, but unless I have an emergency expense come up I’ll only spend what I have in my bank account. That way I can pay it off in full and never have to worry about interest rates!
Volunteer mod- I'm here to help! Email me for the best response: nambroth at gmail.com
My art: featherdust.com
- You must be logged in to reply to this topic.
