It's Baaack! Bank of America Credit Card Rate Increases Strike Again

At the start of 2007, we posted an alert on the blog about Bank of America customers receiving significant rate increases. Usually, these were customers who had a low 9% fixed rate for years and were carrying balances on the accounts when their rates shot up above 20%. We received over 20 comments from readers at the time reporting the same increase had happened to them.

Now, at the beginning of 2008, it looks like the Bank of America rate increases have returned. Apparently BofA makes a New Year's resolution each year to scrub out customers with low rates. One reader reported that Bank of America said they've just sent 1.5 million of these rate increase letters.

Here are some of the reports from consumers we've received today:

I just received the letter wanting to jack me from 11.99% to 19.99% - My minimum payment is $143 a month and I pay $702 every month! Way over my minimum. I have never been late. My balance is a little high, but not that high. Barely over 1/2, which I guess is why they "only" want to raise mine to 19.99% instead of 25%, like others. I too am writing to reject the terms and if anyone starts a class action suit, I would be happy to add my name to the list. They also told me not to use my card after February 29th, if I reject the terms or they will automatically go into effect. This thing is getting paid off and then they can pay to send me a paper statement each month on a $0 balance!
- Mary Lee - 1/22/08

Just had the same letter up from 14% to 27.99%, over 6 years of no late payments and because my balance went up they are screwing me!!!
- Matt - 1/22/08
 
Just got info today. Mine was going up to 27.99%. No lates, I am even getting other b of a offers on platinum business. See ya later b of a
- Paul - 1/22/08

Same thing happened to me with Bank of America. 9.9% to 24.9%, but am sending a letter rejecting it. Screw all the credit card companies. Beware of Chase/JP Morgan, they will take your intro rate of 5% or so and put it to 29.99% then claim you sent one payment in late.
- TS - 1/22/08

This just happened to me. I had a MBNA card that was purchased by BofA and today received an amendment letter stating my rate would increase from 14% to 27.99%!! Doubling. I haven't been late on this card in over 5 years and the customer service rep said it was due to a high balance. How the hell can they do this? I can choose to reject, but then lose the use of the card and a 10 year history with them. I am going to transfer the balance to god knows where I guess. One thing he said was that I was not alone and that over 1.5 million customers were sent these letters today.
- Saluki - 1/22/08

Same here. 9.9 to 23.99%. Getting screwed like everyone else. I'm onboard with signing a class action lawsuit.
- HK - 1/22/08

Wow, I'm not alone. I thought I was a good, responsible customer of BoA who made their payment on time. I guess that's just not enough for BoA. Same as everyone else, I recieved one of these letters today, saying that my 9.99% APR was going to be changed to 23.99% (if you're reading this you probably have the letter). This is highway robbery. Either you close your account (and still pay off the balance at 9.99%, boa wins) or you transfer the account (BoA still get the balance and makes money of past interest) or you pay the outrageous APR and continue to get screwed. I wonder if this has something to do with the laws trying to be passed stating that banks can no longer raise interest rates for missed payments, and too many people filing bankruptcy due to credit card debt. Sounds like this is BoA's last effort to suck money out of their customers. Sad, really. Wish I had known!
- Mark - 1/22/08

Have you received a rate increase notice from your credit card issuer? If so, think twice before retaliating and closing your account. Credit card account closure can have a major negative impact on your credit scores. It is better to leave the account open and unused if you can.

Emily Davidson – Credit.com credit expert and former TransUnion insider. Emily writes about credit reports, credit cards, loans and personal finance as the CreditBloggers.com moderator.

Comments

[Paula B]

There is a company called Credit Card Zappers that is supposed to negotiate stuff with your credit card company if you need help.

I used them to have interest charges and an overlimit charge removed from my bill.

[Jim ~ mydebtblog.com]

I have been fighting the good fight with BoA for over a year now. They jacked my rate from 9.9% fixed to a 32% default rate. I didn't make the payment late, it just didn't process on their time frame due to a holiday. Got late fee reversed and thought it was fine, no thanks, 32% APR for you. After 6 months I got it lowered to 25.24% and another 8 months to get it to 17.24% and this past December it is at 15.24%. They don't even want to give me back my original rate because I don't use the card. Why should I use their card if I have one with a 9.9% rate and doesn't give me such a headache? I threaten to transfer my balance all the time but they could care less. My wife is lucky to keep her original rate on an MBNA card because it is closed and doesn't get jacked by BoA policies. It's not worth the hassle dealing with those people at BoA, they just take more money out of you one way or another no matter what you do.

[chrissy]

My fixed rate was 6.900% on my platinum plus BoA credit card and I just received the letter saying it was increasing to 20.99%!!! I have had this card and this rate since 2004, and have never paid late or went over my balance either! This is ridiculous and i will definitely send the rejection letter and close my account. I am all for a class action suit, how can they increase a fixed rate????

[eric Fresch]

My rate letter stated an increase from 17% to 27.99%, and when I called to ask BofA about the letter, I was told that it wasn't sent by BofA, but it was up to me if I wanted to respond???????? Thinking that the customer service rep was just clueless, I called again and was deceptively told that my rate was only going up to 19%. (ABOVE PRIME, THAT IS!!!!!). Then, I expressed my dissatisfaction with this increase and asked what I could do about it. She said I could speak with a rate specialist, and I was placed on hold for one hour. Eventually I hung up. I am in the process of taking all my money and mortgages out of BofA for good (totaling 1 million dollars). I no longer wish to do any business with those greedy bastards.

[AlexRedd]

My guess is that Bank of America waited for the outcome of congressional hearings on credit practices before doing this. If you recall, BOA was unapologetic during those hearings in regards to today's subject, "universal default". From a business standpoint, if they will make money from this practice, why should they not?

[Kevin Jackson]

They did this to me twice, first it was MBNA 9% Fixed with good credit, then out of the blue jacked it up to 29% without any late payments or over limit.

So I paid it off, a year later B of A takes over for MBNA and get a new intrest rate of 13%. Did they learn from their mistakes? You guessed it, once I used the card again, I now have the same notice 29% since I used the card, again, no late payments ever. So much for customer loyalty and they wonder why people default on them so often.

I say if credit card companies can do this legally, then next time they want a bail out with our tax dollars they should be forced to the same exact rates they chared their customers. What, that might put them out of busness, too bad, so sad. Not all credit card companies do this. We should reward the ones that dont and punish the ones that do, after all, thats basicly what they tell thier customers.

[Brandon]

I have had a BofA card for over 5 years now. Never a late payment or overlimit. Today I received a letter stating that my fixed rate of 7.90% was being raised to 15.99% as of 3/01/08. The letter gave no reason. The letter stated that to reject this increase I could write to an enclosed address and pay off my balance at the current rate; but could not use the card any longer without the rate increase. I decided to call BofA and found out there is a special dept. set up for this mass letter as they stated. When I asked the woman in this dept. why my rate was being increased; she said she had no idea why. I asked if everyone got this letter with increases and she said a lot of people did. I explained all of the above to her and she said it was just the economy. This is such a scam; but what can you do. I noticed from previous post that it appears to happen when BofA is trying to raise capital for new acquisitions. i.e. MBNA, as stated in many post above and now my letter with the recent news of them investing in Countrywide. Has anyone else noticed this?
1-800-718-6257 - This is the number I was given for questions about this letter. It is called the Retention Dept..

[Richard]

I too received a letter from B of A today! They are raising mine from 18.24% on my purchases to 27.99% and my promotional that was supposed to be good until paid off 8.25% to 27.99%!! So if it's legal for them to go against their agreemnet for my promotional terms shouldn't it be legal for me to go against my sgreement to repay them? I've had my car for over 10 years with no late payments! I do have a very high balance on this card! I've been trying to pay my cards down and make a better life for my family! I just got married, i have a baby on the way and my wife lost her job and is now making half what she was! I swear it seems like I'll never get ahead! They want a darn stimuls for the economy how about passing laws against this sort of thing!!!

[Mary]

Just got the lovely increase letter from BoA...I will be rejecting by certified mail today and pulling ALL my accounts from B of A and recommending this to all family members and associates...they deserve to go under with business practices like that!!!!!!

[Danielle]

I called BOFA this morning after seeing so many ppl get letters and I had not. My husband and I have had an acct with them since 2004 but our rate is remaining at 14.24 and they said we have no increase coming. The rate specialist said in her words that ppl who are getting it have had high balances or late payment history. I say you get back on the phone with them and hold for the rate specialist.

[Fed UP]

I think it's irresponsible to advise the masses to continue to do business with an avaricious, underhanded company simply over fear of one's credit score being negatively affected.

I would rather take the ding to my credit score for a couple of months than to undermine my own principles and allow these companies to get away with atrocious business tactics.

There used to be such a thing in business practice called GOODWILL. Apparently that commodity has disappeared in today's society.

I would advise anyone who does business with such a company to immediately close ALL accounts and take your business elsewhere.

When it comes to credit card companies, we must understand that we have a choice as to whether we wish to be held hostage by our credit scores.

Businesses like these need a wake-up call.

[richard]

**Update to my earlier post**

They are not raising the rate on my promotional offer! But that really isn't the point here! They decide to pump money in to Countrywide and they are going to make us pay for it! All of our bank accounts are currently with B of A but not for much longer!!!!!

[Sandy]

I called BOA two times to verify, but as long as you send the rejection letter and not use your card, you can keep the current apr throughout the balance.

[Mike]

9.9% to 24.9% more than double my interest rate and I've never missed a payment... I'm not canceling, but the balance will be paid off by the end of the month. What is the point of being a good customer with good income if I'm getting treated like someone who defaults on their payments?

[Tim]

Yup, they got me too. from 9.99 fixed to 27%, no lates, pay more than minimum. They say my balances are too high, hmmm, my credit score is better than it was when the accts were opened. Also, if balances are too high, why do they constantly send out checks to write off of the accts that have balances too high?

[Eric Patridge]

If you have a facebook account and wish to join a group against BoA and their sudden and disloyal interest hikes, look for the group "Bank of America (BOA): Vote No Confidence"

[Amanda]

Another soon to be ex-BofA cardholder here...I also have a platinum plus card, and my rate is going from 15.74 to 25.99. Just 3 months ago they raised my limit (again). The "rate specialist" said I am "high risk" because of the high balance on my account. It's no higher than it has been in the past. I'm sure the reason for this is the new car I purchased just 2 months ago. I've been with them for quite a few years, never been late, paid the balance off several times, and also bank with them. I'll be rejecting the new terms but keeping the account open and unused. I'll also be taking my and my SO's checking/savings accounts elsewhere.

[kevin]

ive been a boa credit card holder for 5 years now, never been late or over the limit. the other day i was raised from 13.79% to 29.99% on an 8k balance for no reason what so ever. (note)none of my other accts are/have been delinquent in any form...for i have just checked out my 3 credit bureau reports, and my credit score holds steady at 735. furthermore i told them that my rate for this score should be around 9% fixed...they denied that quickly. they tried to tell me that they were only helping me out by doing this, i retorted(major expletive), because they were in fear because i have a high balance....i told them what do you care if im living hand to mouth...you are getting your money on time, and more than the minimum pmt. so i rejected the new apr, sent 3 letters with delivery confirmation in case they try to state they didnt receive them on time , like they convieniently do on occassion to try to make more revenue by lying-(i have proof with signatures and dates.) i will never use this card again...i will pay it off in full before june08,..and i will close the account indefinitely. i absolutely refuse to pay for boa's short comings, and the rotten bussiness ethics that they impose on good customers. i truly hope boa's greed runs that company deep into the ground. someone truly needs to stop these companies fron doing this. fact ! sorry for the rant, but this world and these businesses are really getting out of hand when it comes to exploiting good /legit ppl.

[ray]

A few years back we got extremely aggravated with BOA and flat out closed & paid off our BOA card. We had good credit, no late payments, nothing bad on our credit report, etc. Their customer service mocked us saying you only make so much a year...how are you going to pay it off...you can take it or leave it...we aren't going to do anything for you?

We'll some time had passed...we received a sweet intro apr for balance tranfers and got another one.

Yup...we received one of those lovely letters in the mail as well. They want to raise interest to 27.99%.

I'll be closing our account with them yet again!

We will never do business with them again...no matter how much time passes.

[Stephen]

Got the same letter jacking my APR to 22 from 8%. If you call them to complain, they will potentially relook at the situation. They wouldn't lower mine....just asked if I was interested in a personal loan to consolidate my debts. I told them forget it and to keep the APR at 8%. The woman flagged my account to not go up. If I see the APR going up, the balance is transferred!

[jacquelynemay]

i have had all of the above problems with B of A.
I looked into a class action lawsuit, but couldn't rustle up any interest.
SOMeONe needs to do this.
Count me in.

I am disabled and have a low/fixed income. Can't afford counselors, attorneys or advisors. Sometimes I don't make the best informed decisions-especially when the information given to us is convoluted.

Also, if you cancel your account when they raise interest rates it goes against your credit report score.
B of A has been screwing people since I can remember. I would have never had an account with them. They bought out MBNA----who else will they buy out?They need to be stopped.

Are we asking our political candidates what they are going to do about the outrageous amounts of money people owe on credit cards? we deserve it more than they do...

Will we get a bailout like those idiots who bought houses they couldn't
afford???????

[jacquelynemay]

Here's what they told me..
the interest rate will be raised from MBNA's 7.90 that they bought my account at to 24.99%.
I was also charged 2 fees of $39. One for not receiving my payment (which I -I mailed it Jan. 5) and another fee for going over the balance;which the late fee pushed me over.
They told me my check wasn't posted because I didn't write my account number on my check and it was probably on someone's desk ( so much for postmarks) I guess payments need to be sent registered mail. I do not trust the automatic deduction from my checking account especially after these kinds of stupid mistakes and explanations. I'll never let them have free reign with my bank account.
I was not well yesterday and shouldn't have been making financial decisions. I closed my account. When I called back today to say I made a mistake closing it, that i had been sick, they denied my request to reopen it and told me my interest rae would have jumped to 21.00% anyway.
They also kept offering me a Golden Consolidation loan instead of answering the questions I was asking.
I still have to send them a letter (REGISTERED) closing my account to retain my new percentage rate. That's 21.99% rather than 24.99%

it is hard to figure from reading the letter about change in terms but the bottom line is EVERYONE'S INTEREST RATE IS GOING UP TO 24.99%

Also, We received a "change in terms" letter a month ago. This new letter cancels out the other letter.

How confusing can they be?
This has to be bigger than ENRON

[kevin]

i hate to say this,.....but im glad im not alone in this matter, its not a misery loves company issue, but it amazes me that a good credit score and on time payments dont stand for much anymore.
please keep in mind that if you call and speak to a rate specialist, dont take their word for it that they will handle it and its not nec' to write the opt out letter,...its just a ploy for the bogus agreement to get lost in the shuffle so they can whack the ones that dont properly comply. i personally sent 3 rejection of terms(opt out) certified mail...with signatures,....just so they can try to play with me.(smile) it amazes me that ppl need jobs that bad in life to let boa brainwash them into lying to good customers...and believing what they do is right. hopefully karma will get boa, my fingers are crossed. when i walk into a branch to make a payment i laugh in front of everyone when the greeter asks me if i want to see about a mortgage from BOA,...now that there is funny.

[Amanda]

I had another thought on this issue. Seems I read somewhere that bofa may be having some difficulties following their purchase of Countrywide. Adding this to the fact that I have never been delinquent on *any other* accounts, nor with them, I wonder if this is a scare tactic to drive cash inflow. Think about it. A letter comes saying my rate is going to double on a high balance (which seems to be common to most of us), and my first gut reaction is to close the account and pay it off in full right away. Closing the account would only punish myself (lowers credit score) and paying it off in full right away just increases cash flow for bofa. Also, this letter seemed like it was intended to get attention and not hide the increase by burying it 3 pages deep. Times that by however many customers they are doing this to and....Think I won't be putting so much effort into paying this off right now just out of spite. I wasn't planning on paying it off in the next 3 months anyway.

[educated]

its funny how the debt consolidatition companies dont include that their way is also as bad as a form of bankruptcy. most of these companies collect your so called payments for months...before they send them to the credit card companies, sending you deep into default and ruining your credit beforehand. every credit consolidation company will lie to your face and not give you all the facts. ive done the research, trust me. they should be banned as well, seeing most of them are in cahoots with these banks anyway. hey , im willing to bet that you work for b of a

[JK]

I got a Bank of America letter stating my 7.99 fixed was going to 21.99. I have never had a late payment, ever. I haven't had a late payment on any card.

My crime? I am carrying some business debt on other cards and it is near the limit, within a few hundred dollars on a couple other cards.

This is very arbitrary, you are allocated a line. But, if you use it fully and make all payments on time then you are punished.

I read the letter and called. They stated that I could not use the account in any way, they would leave it open, then I could pay it off at the 7.9 fixed.

You know what pisses me off?

I actually can handle this and get out of it. I have a business and can rally some funds and pay this off in a couple months if I had to do so.

What really bothers me is many people, like I was not very long ago, get hit with something like this and it can steal 5-7 years from them as they try and fight 25% + interest robbery in order to save their credit.

I would like to see one congressman or senator not under the control of these same bank's lobbyists start federal legislation to prevent this fleecing of good people.

[JJ]

I suggest that anyone who wants these matter investigated contact the _Comptroller of the Currency_, which has jurisdiction over national banks. You may also want to contact the Better Business Bureau.

[Trish]

I am furious. My interest rate is now 32%, acutally it has been this since August 2007 without knowing. It was raised for a late payment, so I went back to research previous intrest rates. One month it was 26.19% the next it was 21.94% then 24.24% then 32%. So I called BoA to find out what was going on and to make sure this was the last month of my 32% intrest rate. I was told that it was going until May because of a late payment in May. In May I was online making my payment when I acidently missed payed by $1.00. I called BoA to let them know it was a mistake and they reversed the late fee and he said it would not count. So here I am today once again screwed by BoA. In May when this will be over I calculated them to have taken $3,000.00 of mine since this 32% intrest rate. I HATE BoA.

[ed]

What these credit card companies are doing is downright abusive & Congress needs to stay involved in this...This isn't a Democrat vs. Republican thing either, Congress needs to step in & prevent these abusive credit practices..

I mean, companies are giving you credit line increases & then the next minute, raising your rates to insane levels!..

[Tiffany]

(cross - post from original Capital One 'build your card')
With all the talk of BoA raising the rates, I have the exact same story with Capital One. I had a spike (approx 6,500) in my card during Aug/Sept due to a family emergency, at which time (coincidental?) they raised me from 9.9 to over 15%. I have had the card close to 10 years, no late payments, etc.... When I called, the rep said a letter was sent the month prior. Funny, I've 'paper-opted' out. I asked him what they have seen on my credit report to raise the rates. He had nothing negative at all to report on my account. He even said I was an ideal customer. I transferred to a 'manager' after 20 minute wait. He gave me same song and dance. I asked to transfer to his supervisor. After 25 minutes I hung up. I then went back and re-read the terms whereby it states if you have ANY auto-bills, ie Easy Pass, etc....and one comes thru that you forgot to change to another card, once that charge is received, Capital one will reopen the card - almost unbeknown. Whether you like it or not. This card has a $20,000 limit, ironically only 3,000 cash allowed. I was fortunate enough to have the funds and paid off the balance immediately. So I then went to open a new Capital One card, on line, and got approved within 2 minutes for 7.99% intro until (i believe Sept 08) with a $20,000 line. Ironically, when I got the card in the mail, NO WHERE in all that paperwork the send were the interest terms/conditions stated. I personally do not believe in having $40,000 accessible on the cards so I called and requested the line to be capped at $10,000 and where the heck where the interest t/c. Rep said she would be 'happy' to send the written interest t/c (have yet to received them!) and sorry, can't do anything with the line, you have too many privileges on the card. WTH? (I did not request $20,000-they gave). Asked for supervisor. Again, sorry, can't help you. There is nothing I can about the limit. I told her to close the account.

It is a complete shame that the law abiding, bill paying citizens are ultimately paying the bill for the mortgage fall out.
Complete shame.

So card holders beware! AND NOT ONLY BofA
Watch your cards.

I'm off to open a card with my 'little' local bank.

[MIssy]

Add my name to the long list of people BofA has done this too. When I called, they said they raised my rate because I've had the same ballance for awhile and haven't paid it down fast enough. I've always paid MORE than the minimum payment and never been late. I told them to raise my minumum payment then, not my rate. I'm transferring my balance now, and will NEVER do business with them again. Credit Unions here I come.

[Teri]

What is the address we're supposed to write to?

[John]

I have a Platinum Plus card with BoA (was previously MBNA, which was a great company). I NEVER EVER make a late payment (over 7 years of history on the card), and my credit score is in the mid-700s. My balance is only 25% of my card limit, and I had a FIXED 9.99% rate. Now they're going to raise it to 20.99%. FORGET IT.

Not only am I paying off the card and closing it (roughly $5000), but I'm taking my mortgage away from Countrywide (which BoA just acquired) and over to my credit union. I realize this will have some impact on my credit score, but I don't need to finance anything for a few years, and my score can take the hit anyway.

So Bank of America just lost $105,000 in principle by screwing ONE customer. I hope they take a look at the amortization table on that and count their losses.

[Chuck Webb]

I need the address to send the opt out letter to BOA, I got the letter increasing my rate and like a dummy, threw it away as junk mail. Please if anyone has the address, email it to me at webb777@aol.com,
Thanks so much

[Emily Davidson]

The address I have is:

FIA Card Services
P.O. Box 15565
Wilmington, DE 19850

The rejection letter has to be received by Feb 19th. If you use the card for any purpose after the rejection is received, your rate will increase again.

[T.L.]

This happened to us beginning of last year. The monthly payment got so out of control we could make it. I am sure you know where we are now, settling out our debt for a lesser amount. We had PERFECT credit and we planning on purchasing our house this year. Now we will lose even more to the intrest rates we get from now on!

[PJ]

I have the same letter as everyone else. My 13.99 APR is going up to 23.99 unless I send the rejection letter. I too have never had a late payment. I also just received a credit line increase of over $2500 from B of A in December to transfer balances "for being a good customer". Apparently you can have a higher limit as long as they can jack up your interest rate too. At 23.99 APR, I would be paying them $2160 per year just in interest charges alone. I will be mailing my certified rejection letter this weekend.

[jacque]

After I posted here, then spoke with a reporter, I got two messages in my e mail to "confirm" my Bank of America account information. Coincidence? Who knows... but I am tired of getting hit with something everytime I turn around.
I went back and found ALL of my account records and they changed my interest rate up and down, also. May seem like a small amount but when you multiply it by all of their unaware customers, it really adds up big.
I knew from years ago when my Mother lost a large amount of money due to one of their errors, to stay way. MBNA sold out to them. I would NEVER have had anything to do with boa.
Is there a way to reject changes in accounts due to sell outs?

[JM]

HEY-WAIT!
....and why is the Fed bailng out home borrowers who KNEW they couldn't afford their loans and NOT those of us who are drowning in these traps called credit cards? We NEVER agreed to the terms we are now obligated to pay.
I want the FED to step in and investigate these crooks.
Ooooops, lost my head, they are all getting huge kickbacks, why would they care if the little people get SCREWED?
I want to hear what the candidates' for president have to say about this.

[Aimee]

I have the same thing and it so pi**es me off!! My mortgage is also with BOA so I feel like calling them and asking them if they want the card paid or the mtg because at these rates I can't afford to pay both of them.

That's pointless though so I'm sending my rejection letter six times by mail on different days so they can't claim they didn't get it. I'm also getting a certificate of mailing in the event they still claim that! Good luck to you all!

[Rob]

Are there any negatives if you send the rejections letter?

[vinnie]

if any one takes action let me know they screwed me on two of my cards from 8.9 to 23.9 i am ready for a class action suite

[Horacio Hernandez]

I also received a letter from BofA trying to explain the increases of interests, which to me doesn't make any kind of sense. I have never been late for a payment. I don't know what to do right now. I think it is messed up that they can just raise interests just because they feel like. I think they are ruining they reputation and forcing customers to avoid business with them. If anybody knows what can it be done to avoid these charges, I would like to know.

[cheryl]

I also had a credit card with MBNA. It was a closed account when BoA bought it. Now they are trying to tell me that I have to close it with THEM also to avoid the increased interest rate. That doesn't even sound legal to me - surprise, surprise.

Also, be very mindful of the payment address. If you pay your bills online through your bank (I do), pay attention to the address on your BoA statement. They were changing the PO Box & zip code nearly every month for about 6 months last year. My guess is they did it so people would be "late" making their payments (because it was sent to the wrong address) & that way, they would have a "reason" to jack up the interest rate. Thankfully, I'm a bit obsessive complulsive, so I caught on; but, I wonder how many people didn't. That HAS to be illegal.

[Cass]

I don't know that I got a letter, if I did I am sure I tossed it thinking it was "junk". What address should I try sending such a letter to?

[cathy]

I had an account with MBNA which BOA bought out. I also have an account with BOA. My interest rate is going up on the old MBNA but not on the BOA. I called today and the customer service rep could not tell me why the interst rate would go up on one but not the other. He also told me that they changed the policy "last week" and now you can opt out over the phone. Of course I do not trust them. I already sent my letter certified mail but will be sending it several more times so they can't say they never received them. Never trust what these people tell you.

[Howard]

You think thats bad? I had an account with Fleet Bank which BOA took over. They have put me on check systems saying I owe them $200+ which were made up of ATM fees I was never supposed to have. The consumer needs to teach this Goliath a lesson - boycott - they will change their tune quickly. Capital One, even when experiencing problems, have never increased their rates - ever. They understand when you have problems. I choose Cap 1 - the best.

[Kelly]

I didn't get a letter, but I got a little slip in with my last statement that says all references to Jan 19, 2008 have now been changed to April 19, 2008. I didn't have a clue what they were talking about, but maybe it's in reference to one of these letters (which I DID NOT get).

[JM]

This just gets worse and worse.
Did you all read Erskine's column in the Los Angeles Times yesterday, Sunday? He says they are doing this to make us pay for the Fed's interest rate cuts for all the bad mortgages people took out.Those people are idiots and sholud pay for making bad decisions...not ALL of us.
Oh, and I cancelled one card but my other card was turned down this weekend.

IF WE ALL CANCEL ALL OF OUR CARDS IT WOULD SEND A MESSAGE FOR SURE.

HOW MUCH ARE WE WILLING TO TAKE?

[Bryan Portofino]

This is outrageous. I have a great payment history and I refuse to accept these laughable terms at 28%. I have been with this company for about 5 years but what I will always remember from this day on, is how this company has treated me. This is not the way to conduct business in good faith. I will be sure to warn everyone I know of BoA and its chaotic policy whims. I will be doing everything in my power to pay my entire balance off within the first half of this year, so I can at least take away any projected earnings those swine may have graphed on my behalf. BOA has just become my #1 financial foe and political cause. I will be writing my congressional leaders about this situation as well.

[Kelly]

Well, I called them and they said my rate is not going up; I don't feel like I can trust them, though, with the problems everyone else is having.

[John Caldwell]

Yeah this is crazy. From what I hear its because Bank of America has recently bought Hunts Home Mortgage Company and thanks to the recent drop in the housing market they are losing money. They are now going to rely on the CC "increase" of rates to make up their loss in gross margin profits from their recent flop of a purchase. Class action lawsuit gets my signature also. B of A will be on the losing end of this one for sure! 9.99 Fixed rate 7250-credit limit Revolving balance of 2700 dollars member sense 2001 NEVER late. Recent credit score of 741. Reason for increase?? "Do to the recent credit crunch, all cards are getting this.” Absolutely ludicrous, I guess I’ll just stick to my AMEX for now on.

[Jason]

I got the letter from FIA card services which has both my Regions Bank credit card and my B of A card stating that my Regions card rate was going to go up to 27.99% at the end of February(not sure if they ever sent me a letter regarding my B of A, it probably got thrown away as junk mail if they did, I'm lucky I decided to open this one). I called the number on my card and talked to 3 different people, the first of which tried to tell me the increase would only affect atm withdrawals. I told her no it says ALL transactions. I then was transferred to a second person who couldn't help me and she transferred me to a third person. I have a zero balance on both my cards but have had high balances in the past. I have paid on time and always paid over the minimum. I told the lady that I had a zero balance on both cards and if they expect me to use either card again, it won't be at a 27.99% rate, otherwise I would cut both up right then and close my accounts. They didn't like hearing that. I ended up having both my cards' rates being lowered from their current rates effective in a couple weeks. I got first and last names, department names and locations of the people I talked to. All together it took about 40 minutes of being on hold and talking to 3 different people to get this took care of. It can be done, especially if you have a zero balance they do not want to lose a customer!

[cupid]

So you don't have to read through my fun, fun, fun experience with this I'll give you this info up front:

You have to call "Customer Solutions" or Priority Card Services-on M-F 8am-6pm EST & Sat 7am - 2:30pm est.
You will find intelligent life forms there. I got the impression these people were working Customer Service temporarily because of this outrage.

On the plus side, I finally got BoA to lower the 24.99% rate change, which would have been 2x my current rate on one card and 4x on the other.
When I asked the reason for the higher interest rate I was told in January it was "because of how I handled my account"- they could give me no specific reason.
Customer solutions told me the reason was (and I quote) because I paid the minimum payment for an extended period of time and that triggers an adjusted rate." He also told me they hadn't heard from me in a long time---they needed to know WHY I only made minimum payments!

You know the rigmarole they put you through. I first called about this interest rate change in mid January. It is now mid Feburary.I talked to over 14 people. I only wrote down the names of the ones that I didn't get disconnected from.
Anyway, I was told that they have had a ton of calls from people saying they raised their rates for no reason. As if the reasons they gave me were concrete?
A whole bunch of other IDIOT things were told to me-that I wrote down-over the past month (minus 4 days -- just to be fair).
I turned down 3 days of work (I am a temp) so I could talk on the phone to them all day. How many of us can do that?
I miss work so I can straighten this out/then they want me to make huge payments???
With what money???

[Randy]

2/14/08
Was recently jacked up from 13 % to 29.99% by Bank of America. Called and asked why. I was told my income to debt ratio was to high. Makes me wonder if they thought that why did they give me a card to start with, so they could allow charges inorder to turn around and up the rate. Write your representatives. There is house bille (H.R. 5244) introduced by U.S. Rep. carolyn Maloney D-N.Y. It's called Credit Carholders' Bill of Rights Act of 2008. This is a disgraceful and immoral practice in my opinion by Bofa.

[MMP]

There's no basis for a lawsuit with B of A. The tiny print in the credit card agreement allows for them to use "universal default" as a reason to increase your rates. It's what you signed up for, and, unfortunately, most big banks operate this way. Better off doing away credit cards, altogether.

[WPA]

Yeah, ever read the fine print in your cell phone agreement?
If we read the fine print in any agreement, we'd never sign anything!
Our fault...we have let this get out of control.
But that is no reason to do nothing about it. It is ludicrous to have to talk to 10 different people to get a straight answer. I've had my cards for many years...this is NOT what I signed for; they change the 'contract' arbitrarily

We do have the right to question their practices.

Take Randy's advice, look into House bill (H.R. 5244) introduced by U.S. Rep. carolyn Maloney D-N.Y. Credit Carholders' Bill of Rights Act of 2008.

In 1985 a group of parents introduced Senate Bill 48 with Sen. Art Torres. We changed the way child victims of severe abuse had to testify against their abusers. We introduced testimony by closed circuit TV.It was upheld by the Supreme court and is now law.

We can make a difference..lets get off our butts

[Monnie]

Yes, BOA is screwing everyone. I believe BOA is trying to get everyone to payoff their balances or transfer them due to this Countrywide takeover. They really need the money. You can't get people with bad credit to pay off their balances so why not mess with those who care about their credit rating. They raise my rate from 8.99 to 24.99%. And yes, its perfectly legal for these a$$holes to do it.

[reese]

I've had an acct with BofA since 2001. I used my card to start a business and financed all my start up costs. I've made more than minimum payments each month and have never been late on anything, with any company. They said I'm not using the card like it's intended. I am treating it like a long term loan and since I'm not charging on it, they are raising my rates. A few months back, they LOWERED my rate because I was making bigger payments and not charging. Now I'm being penalized?

Then she tried to rationalize it by saying that since I'm not charging anything anyways, it won't really change anything as long as I reject. So what if I have a balance and have other credit cards? Everything is paid on time. What about the two credit cards I paid off with other companies last month? BofA infuriates me. I'll leave the card open, and pay if off, and then they can waste money sending me balance transfer letters and checks that I will never use.

[Jim]

I was told by BoA that in order to reduce the rate I would have to use the card more and make bigger payments. They refuse to reduce the rate and their rate specialist just spins things around on me. This is a direct result of what happens when a bank gets too large too quickly, it needs the money so getting the money it has lend out back by people leaving is probably what they want. Even if you don't leave they'll charge so much more in interest now, they still get their money on top of that. The only way to really hurt them is stop paying them and go into default to force them into a settlement but doing that will hurt your credit. I have a feeling I will end up transferring the balance from them and no longer doing business with BoA ever again.

[Tom B]

I paid 3 - 4 time the minimun due and they raised mine to 29.9. When I asked why, the rep told me that I was late on my mortgage payment. When I told her I didn't have a mortgage, she then stated that my balance was high. So what is the real reason? This is the same bank that is offereing cards to the undocumented. I am interested if anyone files a class action suit.

[Scot]

In the same boat with everyone else. I have a 20 year perfect credit history. Not one single missed payment to ANYONE, EVER, in my entire life. I got the letter raising my rate from 15.9 to 27.9 in January. I never called to ask for an explanation or contest it. I simply chose to end all my business with Bank of America. As of now I have paid off and closed two accounts with them. I will never do business with them again. It seems an absolutely moronic business practice for a company to alienate their good paying, profitable customers. Later B of A. I really can't see how they expect to profit from this long term. The customers like me who are on solid financial ground will simply hat Bank of America and cease doing business with them. And the customers who actually are on shaky ground financially may very likely be pushed over the edge by such a move and default. Either way I can't see how B of A benefits in the long term.

[steffani]

Each of us must find out who our Congressmen/women are who are refusing to make laws against this kind of usery.

We must then let them know that they are about to be thrown out on their ear for not doing their job in this regard.

[gereen treeful]

I hurt my back a little over 4 yrs. ago. I cant work because of the horrible pain I am in. I have begged bank of america to please lower the interest rate on my card. I never missed a payment with them .they charge 3 times the amount of the payment. I have paid over 7 times the amount of the bill that only brougt the card down a few hundred dollars. I cant swing this any more. any advice out there?

[Anne]

I live in Gulf Coast recovery Area. I had a credit card with MBNA. Purchased by BofA. My rate was always in the 9-11% range and the bank could be worked with. I used my BofA credit card to jumpstart my business following Hurricane Katrina. They jumped my rate to 18% after I borrowed $25,000 on the card. Stupid on my part but....I have noticed that each time I called them to lower my rate they hiked it on the next statement. It is hard to prove. However I just called the end of last week to request a rate reduction and they sent me a letter lowering my available balance. I have never been late with a payment. Fustrated. Looking to join a class action suite against BofA if possible. I feel they are on the fringe of being legal in their actions but I am not an attorney just a struggling business woman.

[Cheryl]

A half hour call to the "credit specialist" at Bank of America has led me to spend hours researching their unethical and dispicable credit practices. In an attempt to try and have my interest rate lowered on my BoA credit card - which I've held for over 13 yrs. - this miserable company has cancelled my card -"because they can", effectively sending my credit rating to the sewer. Over the past 2 yrs I have had to use this card more (divorced and now a single mother of 2 college students) than I would have liked, but I always paid over my minimum pymt due and on time. My discussions today with "Mr Strauss" revolved around him telling me that I live beyond my means, and should take advantage of one of the credit counseling companies that they approve of. When I declined to do so, stating that I just called to try and work directly with BOA. I was told by this NOT SO GENTLEMAN that he reviewed my credit history - even though I had nothing negative - and he was closing my account. His response to my questioning his justification for this was "I suggest you read your credit agreement (13yr old document I'm sure I no longer have and he could not provide me), it says that I can do this at any time and I just did!"
My hope is that anyone who has had problems with Bank of America, and there are thousands of us out there, file a complaint with the Federal Trade Commission (https://www.ftccomplaintassistant.gov/), the Attorney General (www.usdoj.gov/ag), ConsumersAffairs.com and any other consumer agency you can find. BoA continued pattern of consumer abuse has to stop and, as a whole, we must unite to do this.

[Steve]

I've had a MBNA->BoA card since 2004. The APR has always been 5.9%, fixed. Previously, balances have been from anywhere between $7000 and zero. I also have another BoA card, with similar balance that had paid off (not transferred), providing a lengthy history. Payments were always bi-weekly, automatically and electronically transferred from my bank's checking account. In June, due to the way the bi-weekly calender and billing cycle fell, May had three payments applied, and the June only had one applied it. The single payment did not cover that months minimum, and they received follow-up automatic payment came in 2 days (two days) after the due date. The result? They increased my rate from 5.9 fixed to 17.65 fixed, more than tripling the APR. I went from $70/mo finance charges to $210/mo finance charges, despite an otherwise excellent payment history.

I called to explain the error -- with a little bit of 'mea culpa' and little indignation the tripling of rates on an otherwise good account, all while pointing veterinary and funeral home charges posted to the account during the same two-week time frame. The customer representative connected me to a "Rate Specialist", who -- I came to understand -- could do nothing as for the rate on the account, but who simply had a singular task of collecting information (I even asked, "are you filling out an application?" of trying to push another product: the infamous BoA/MBNA Gold Account (seriously? seriously??).

The agent had the nerve to chastise me for being 2 days late on that cycle's second automatic payment, suggesting I was irresponsible (and totally glossing over my previous excellent payment history, and fact that three automatic payments had been applied to the previous month).

I asked her, on a scale of 1 to 10, how much BoA would like to keep me as customer. She refused to answer, so I rephrased the question. "On a scale of 5.9 to 17.65, how much would BoA like to keep me as a customer?" When she refused to answer again, I hung up. Within 15 minutes the balance had been submitted for a transfer to my USAA card, which includes 0% APR for a year, a fairly decent nominal rate after that, and no transfer fee (promo).

I dodged a bullet this time, but the lesson here is clear. The economy sucks, customers are defaulting, and creditors are getting skittish about who they lend to. If you carry a large balance on your card (or small balances on a bunch of cards), you are a liability to the bank, /despite/ an excellent payment history. And if you have a very low fixed, non-promo APR, your aren't making much money for the bank. In short, customers in this position are high risk, low return. The sad part is when banks, in an effort to increase their return to match the perceived risk, put people who are on the financial edge in an even trickier position by jacking up the rates... effectively pushing those customers over the edge.

The best thing we can do is remove ourselves from a position where we can be jacked around by rate increases. Pay down your balances, then pay off your cards. Scrimp, save, go without. In the end we won't be paying /any/ monthly finance charges, and many of those smarmy call center reps and skeevy "rate specialists" will have to look for other jobs that fit their underwhelming skillsets when the lenders are forced cut back staff in the wake of a decreased customer base. That, folks, is 'payback' in full.

[Shannon C.]

August 8, 2008

My Mom has the best credit rating you can receive. She pays her BofA credit card in full each month, never carrying a balance into the next month. Today she received her newest statement and the APR is 69.0%

That's right Sixty-Nine percent !!!! NOT 6,9 - NO!!! It's 69% and we couldn't believe our eyes, but it's true. I'm going to phone BofA tomorrow and ask what the heck is happening??

[Shannon C.]

August 8, 2008

My Mom has the best credit rating you can receive. She pays her BofA credit card in full each month, never carrying a balance into the next month. Today she received her newest statement and the APR is 69.0%

That's right Sixty-Nine percent !!!! NOT 6,9 - NO!!! It's 69% and we couldn't believe our eyes, but it's true. I'm going to phone BofA tomorrow and ask what the heck is happening??

[Shannon C.]

August 8, 2008

My Mom has the best credit rating you can receive. She pays her BofA credit card in full each month, never carrying a balance into the next month. Today she received her newest statement and the APR is 69.0%

That's right Sixty-Nine percent !!!! NOT 6,9 - NO!!! It's 69% and we couldn't believe our eyes, but it's true. I'm going to phone BofA tomorrow and ask what the heck is happening??

[Melissa Bush]

I have a close account with B or A and guess what. I received a letter telling me my rate was going up to 24.99%. That is double with I am at right now. I do even know if they can raise the rate with a closed account, but BofA is. My payment will be going up about $160 a month. BofA will NOT work with anyone it looks like. Does anyone know if your rate can be raised when the account is close. Payments have never been late by the way. Oh yea, guess this blows your opt out letters. You can get screwed even with a closed account,

[Michael Austin]

I also received a notice that my rate will be increased to 24.99% even though my account is closed. I have high credit scores and make payments on time. I called the credit card company and the reason given for the increase is that I am not paying enough in additional principle above the minimum payment amount. He said that even though my account is closed, there is a term that allows them to raise the interest rate if you are not reducing your outstanding balance fast enough, even if the account is closed and you are not using it. He said I can continue to keep rejecting notices as I receive them (opt out). This is the second time this year I have dealt with this situation. Of course both times I called they tried to sell me another Bank of America product that could be used to payoff the credit card at a better rate. As usual, they are preying on good paying customers to make up for their lossess in other areas and from other customers, as well as using the rate increase as an excuse to try and sell you something else.
I also received a notice from Bank of America that monthly fees for my checking account are going to be raised as well. Bank of America is getting way too greedy and I would recommend that people avoid them at all costs.

[Mary P.]

I just got a letter from Bank of America yesterday also saying my apr was increasing. I've never had a late payment and my balance isn't even high. Bank of America sucks!

[Kathy]

I just got mine. 5.99% up to 20.24%! I've been at 5.99% since I can remember. I hope I meet the rejection deadline, as with the holiday weekend, I can't mail it until 9/2 and my cutoff is usually around the 5th....I bet they've moved it up to try to beat me to the punch...

[FreeSpirit]

Bank of America is a sleazy and unethical company. Having a perfect credit history, low interest rates that spanned 15 years, this week, BoA CLOSED all my 8 credit cards. My FICO score dropped from 720 to 560. I'm considering a lawsuit. It doesn't seem ethical for a bank to close your account as if to tempt other credit cards to follow suit.

If anyone wants to file a class action, count me in or contact me.

[Brittany W]

Agreed! Anyone want to file a lawsuit? Iam with you!