Decoding Bank of America's Latest Credit Card Fee

The headaches have been nearly endless since the day that my MBNA credit card switched over to Bank of America. There were problems logging in to my account online. Readers reported dramatic increases in their annual percentage rates. Now, I received a long letter from Bank of America full of new fees and hidden catches.

Bank of America sent out this three page "Important Amendments to your Credit Card Agreement" letter over the last few weeks. Most customers probably threw it directly into the trash. But if you read closely, you would see that Bank of America has implemented a new minimum finance charge.

Translation: Unless you pay your entire Bank of America credit card balance in full each month, you'll be charged a minimum finance fee of $1.50 or a full finance charge on the balance, whichever is greater.

Most credit card issuers (including Citibank and Capital One) only charge a minimum finance fee of $0.50 each month. Bank of America's change represents a pretty major fee increase.

Below the minimum finance notice are instructions for rejecting this change. According to the notice, you can send your rejection before May 1 in a letter to Bank of America - P.O. Box 15718 - Wilmington, DE 19850. However, their customer service team told me that all this rejection does is temporarily freeze your account. Once you use your card for a purchase again you virtually "accept" the change and are stuck with the fee all over again.

This lovely letter also included a notice that my account will no longer have a grace period unless I pay the balance in full by the due date each month, that late payments and over limit fees go as high as $39 and that they will charge a 2% fee for international charges.

Bank of America is obviously trying to find new ways to nickel and dime customers who rarely carry over a balance on their accounts. If I so much as pay ten cents less than the full amount due on my account, I'd be looking at some serious fees.

The timing of these changes is especially odd given that the whole credit card industry is under congressional scrutiny for charging excessive fees. Instead of following in Citibank's footsteps and voluntarily cutting back on their worst fees, Bank of America appears to be stepping it up. I don't know about you, but I don't feel like using my BofA account anytime soon.

Comments

[Jim G]

Bank of America has absorbed a lot of big name credit card companies within the last few years. My wife had an MBNA card which is now BoA and I had a Fleet card which I think 2 years prior was converted to BoA. We never had issues with Fleet or MBNA but ever since being converted over to BoA, they are shady about their fees. I still get my paper statements from BoA, and glad I do because I use online banking all the time and pay online too. The online statements only show transactions, credit line, balance, min payment, due date, they do not show the APR. Looked at a statement, I was sitting at 28%V! Turns out when my Fleet card, which had 9.9%F, they changed terms on me and jacked my rate up. I got a new rate around 15% but over the past year I have watched it creep its way up to 25%V and I pay on time every time. I will be transferring the balance relatively soon because everything going on with BoA lately should be illegal.

[Market Pro Secure]

We also heard that many consumers start complaining about increased fees and growing APRs, but seems 2% fee for international charges is a standard for major credit cards. Same Chase Credit Cards even charge up to 3% for international transactions.

[GDAEman]

You seem to be something of an expert on this. I did a quick job on this. Your comments, critique would be appreciated:

My Take on B of A Fee
http://gdaeman.blogspot.com/2007/03/bank-of-america-privacy-policy-credit.html

Take 2
http://gdaeman.blogspot.com/2007/03/bank-of-america-credit-card-scam-2.html

Thanks for keeping an eye on these corporations.

[Jill]

I also noticed the rejection of minimum payment and was about to write to them; now I see it is pointless. I also noted that they gave me only 12 days to pay my bill this last cycle. Suppose I went on vacation? I don't remember only getting 12 days. On the MBNA card I believe it started out to be a month, slowly it seems to be receding. Twelve days is a set up; what if the mail is slow? I noticed for some companies they warn you that even if it is in their company it may take days for it to reach the correct department and that you are somehow responsible for their incompetence and inner workings. So, how many days do we have really? I advice you to plan your vacations around your bill cycles and do note that the amount of days you are given to pay up varies from month to month. Anybody know any legitimate credit card companies?

[Dan]

To whom can I write to cancel my Bank of American Card?
They hold my mortgage - you'd think they'd be more appreciative of the interest I pay them already!

[Terri]

I have a B of A card, or should I say "had" a B of A card up until they decided they would not renew my CC even though I had never made a late payment and had utilized only about 40% of my available credit. Then I rec'd the lovely letter they sent that said they would raise my interest rate unless I told them in writing that I didn't want them to?? Duh, of course being only slightly moronic in that I ever did business with them in the first place, I sent the letter...certified. Then I accepted another credit card offer from a competing company for 0% interest until 2009 and transferred my balance. It seems strange that if I were that horrible credit risk another CC company would even want some loser like me at 0% interest. I had been a BofA customer for more than 12 years and am totally disgusted with them. My next step will be to close my checking acct and be rid of them for good!! Oh and then start a petition to change their name because they are helping to give the name "America" a really, really bad name of greed and callousness.

[Michael]

People you need to fight them thru the goverment! I know our goverment is not doing well on that note but there needs to be messages sent!
CCs if owned by a bank need to be regulated just like a bank! so start sending the messages and the goverment will get the hint that people are tired of being taken advantage of!