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Skankingmike
April 13, 2009 1:59 PM
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find a new card, they do this all the time and don't need a poor economy to initiate this.

BOA seems to like high interest rate cards.

My wife and I both had issues with them and have moved on.

Citi has been great to me and Wachovia too.

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spamtasticus
April 15, 2009 1:52 AM
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@Skankingmike:

They did it to me and my credit is flawless and I have never made a late payment. I simply rejected the hike and will pay off the card and send them packing.

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Lisa Frank
April 13, 2009 3:45 PM
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@Skankingmike: Citibank was the FIRST to raise rates, they bumped mine to 18% after 10 years of paying balances in full and a credit score in the 760s. [www.creditmattersblog.com]

Bravo to Kevin for realizing that closing the account is not the answer. Keep that credit history!

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Skankingmike
April 13, 2009 5:08 PM
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@Lisa Frank: Never got the notice from Citi my rates are still 7% nor my Wachovia card. My sears master card went up to 29% or something ridiculous like that.

But Citibank never bothered me in fact; while this site reported they were lowering peoples credit lines mine increased in all my cards except Sears. (which who cares I got it for those stupid specials they sometimes run.)

You shouldn't close accounts but you shouldn't have 1000 open either eventually I will have to close one of my 6 credit cards.(I only use the one, and by use I mean paying off stupid debt I accrued over the years.)

BTW what's the deal with my Circuit City card I've gotten nothing in the mail as of yet.

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sleze69
April 13, 2009 4:29 PM
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@Lisa Frank: My US Airways mastercard raised its rates about a year ago. Of course, I pay off my balance at the end of every month so it makes no difference to me. Hell, raise the interest rate to 40% and give me rewards that I can take advantage of.


Kevin is in the same situation so while it is annoying in principal, it does not really affect him.

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TouchMyMonkey
April 13, 2009 6:03 PM
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@sleze69: Discover now puts ceilings on the amount of \"rewards\" they hand out. I guess they only want to bribe you to use their card a little bit.

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Joel0
April 13, 2009 3:29 PM
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@Skankingmike:

Raise interest rates on someone who pays their balance every month. Yeah, that will get some money. ?!?

I think everyone one reading this blog already knows this, but credit cards have always been (and even more so now.) an awful way to finance things. Use a consumer loan (e.g. car loan.) with a fixed rate and fixed term.

I pay my CC every month, and if I need a longer term debt, I take out a specific loan for that purpose (Fixed rate, fixed term.) In an emergency I have my HELOC whose rate is tied to the fed rate. My HELOC is at 3.25% right now.

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slyabney
April 13, 2009 2:02 PM
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I got a letter like this too. I have never had a late payment, always paid off, never gone over limit, etc, etc. High 700s credit score and my rate is going from 9.99% fixed to 15.74% VARIABLE.


Screw that, it doesn't take effect until May 1st, and if you use your card after that time you accept the raise in rates. So I plan not to use it until there's a emergency.


In the mean time, I'll rely on my Captial One card, who has of yet to raise my rate and find a new card.

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Triterion
April 13, 2009 11:31 PM
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@slyabney: I had the same exact thing. 7.9% APR to a 14.99 Variable. I called the minute I got it and declined the change. Chase Freedom has a better APR and you get grips of cash back from that one!

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ophmarketing
April 13, 2009 2:02 PM
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We've been over this. BoA is just the latest in a long line of what will no doubt be every credit card company. They're doing this in advance of the new law (which won't take effect until next year) which will only allow credit card companies to raise rates under certain very specific conditions (i.e. when the card holder is more than 30 days late with his payment, when he's receiving a promotional interest rate, etc.)

If Congress had any balls, they'd go back and make the new law retroactive to Jan 1, 2009 and screw these f*ckers over for trying to screw us over.

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pal003
April 13, 2009 8:09 PM
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@ophmarketing:
Call your Congress Reps Next Week - HR.627 and S.414 - House and Senate bills - Credit Cardholder's Bill of Rights.

These bills will be voted on next week and will prevent an Increase in interest rates on existing balances - and more changes to help consumers. Put pressure on Congress to help consumers now - not just banks. Toll Free Capitol switchboard 1-800-828-0498.

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TEW
April 13, 2009 3:45 PM
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@ophmarketing:
You also need to remember that the Credit Card Companies are getting their teeth kicked in from this recession. Most of these companies will try and get debt off their books and unsecured debt is most likely the first to go. If you noticed the HELOC have been cut and other lines of credit have been cut already so this is nothing new. The debt frenzy is now over.

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lalaland13
April 13, 2009 2:21 PM
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@ophmarketing: I wish they would do that. This new law's timing is irritating me as well-it's like saying well, you can murder people, but come summer of next year, you must stop! Because murder is bad!

I have little credit and creditkarma claims I have something \"in collections\" and that's why my score is low (uh no, actually I do not). But I won't be getting any new credit till next summer. This is crap.

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lalaland13
April 13, 2009 2:54 PM
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@RecordStoreToughGuy: I don't know what's supposedly in collections-no one I know has been trying to collect from me. I tried to get something from annualcreditreport.com, and it said there were problems and I needed to mail a form in with my social security card or pay stub or some other stuff.

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Penny
April 13, 2009 3:21 PM
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@lalaland13: You should definitely call one of the reporting agencies (I like Equifax) and try to work it out. It's probably an old utility bill or something.

Although, I find it odd that ACR.com would want your SSC or a pay stub, that sounds.....not right.

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lalaland13
April 13, 2009 3:40 PM
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@Penny Plastic: Or rather, a copy of that info. They said my account had been flagged or something and they needed to verify my identity.

I may have picked the wrong bank/the wrong amount in the \"information only you would know\" section to verify your identity. I was probably overthinking it, wasn't sure which bank for which loan and so on.

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dragonfire81
April 13, 2009 3:19 PM
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@lalaland13: The new law will be toothless anyway, the lobbyists will make sure of that. Congress loves to sound tough but its rare they ever follow through.

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LegoMan322
April 13, 2009 2:03 PM
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From now on I am stuffing my money under my mattress. Not one of the companies deserves (yes deserves) to use my money. Especially when they are bailed out with more of my money....then they charge me more for taking more of my money.

Kind of one sided don't you think?

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youbastid
April 13, 2009 8:43 PM
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@LegoMan322: I...think you're missing the point. This is about Bank of America's credit card division - they're not using your money, you're using theirs.

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LegoMan322
April 14, 2009 3:18 AM
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@youbastid: You might be right...but I was reading and I thought a similar article on the internet today about how they are using tax payer dollars, and then raising the interest rates even more.

I assumed (hate when I do that) that this the same article if not similar to what the other one was saying.

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TouchMyMonkey
April 13, 2009 6:16 PM
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@LegoMan322: THIS, except I'm keeping mine in a virtual mattress at my credit union. Before long, I'll have as much in there as I used to owe on my credit cards a few years ago.

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FreeShaggy
April 13, 2009 2:44 PM
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@LegoMan322: Hey I'm with you friend.

I'm thinking the best way to resolve the current Credit Crap is to go to a strict \"Cash Only\" diet. Find a good Credit Union or Bank with a card that doesn't screw you with ATM fees (Good luck I think) and just take out all the money you'll need for a day or week depending on what spending you're doing.

Yea, not the best policy for establishing a good line of credit, but you know, damn them.

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esarge
April 13, 2009 2:23 PM
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@LegoMan322:
Err... I'm rather hoping you're not suggesting doing that literally. It was a common reaction to the bank failures during the Great Depression and it still carries the same big risk: inflation. Because you're not earning any interest on that money it's value decreases over time because the value of goods you can buy with it decreases.

I'm sure if you like you can find a bank that you like and trust. A credit union perhaps?

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alexcassidy
April 13, 2009 10:47 PM
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@esarge: Really? And you'd be earning interest on it otherwise? Have you looked at interest rates lately?

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LegoMan322
April 13, 2009 8:01 PM
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@esarge: accruing interest is a farce, a big lie to get your money long term. I will not put my money under my mattress, ( I just told you my hiding spot!!) but I will not give it to banks.

They have completely screwed everything up and I am replused by the fact they are getting more money. And they make more money than you and I have seen in OUR lifetimes so far.

Do you really want to keep giving them money?

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slyabney
April 13, 2009 2:04 PM
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I had the same thing over the weekend and mine read's like Kevin's story.


Except my fixed 9.99% percent card went to a 15.74% variable rate card. Doesn't take effect until May 1st, upon which I will not use (using means accepting) and start researching other cards.

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Anonymous
April 13, 2009 2:10 PM
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I had them send a notification to me about the hike. I rejected it and then called and told them I was unhappy about this. They told me to hold for a moment, then came back on and told me that they would keep my rate the same and that I could use the card. I'm guessing that they will do this for many people if you just complain.

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humphrmi
April 13, 2009 2:19 PM
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The Wall Street Journal has a very different take on this story ... that the Congressional Oversight Panel is reviewing the fee & rate increases at banks that took TARP funds, like BofA.


[online.wsj.com]

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outoftheblew
April 13, 2009 2:19 PM
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My husband and I have separate Discover accounts, and we both received letters notifying us of a rate hike of about 3%. We usually pay in full, not always, and don't have late payments. I wonder if there are going to be any cards that DON'T hike rates.

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MaelstromRider
April 13, 2009 2:20 PM
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I was originally at 13.74%, then they jacked me up to 24.99%. I just got a notice that now it's going up to 28.99%. Fortunately, this time (unlike the last time) I can tell them where to stick their card.

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hedonia
April 13, 2009 2:25 PM
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I'm in the same situation, and I don't know what to do. Not only did they raise my interest rate from 8% to 20% (no late payments, FICO above 800), they also lowered my credit limit to within $100 of my balance.

I ended up with a $5000 balance on the card in the first place because I lost my job. (I have a new one now, lower paying). During that time, I always paid at least twice the minimum, but I carried a balance, so I assumed they would think I was an ideal customer.

The CSR at BoA that I called on Friday was extremely cold and rude, even though I was trying to be really nice when I called to see if I could get it lowered. She literally told me that I needed to hire a debt management company, because they're the only people that can lower my interest rate - and then she gave me the number of the one they're affiliated with.

I actually called the guy, sat on the phone with him for half an hour, gave him all my income, expenses, debt information - and he said that it would be more expensive to use a debt management company than to just pay the interest rate, because I have never missed a payment and I have good credit - the banks won't work with me because I'm not a risk! He told me I should see if I can get a 0% card and just do a balance transfer.

Now, BoA, when even your debt management company thinks I should OPEN ANOTHER CREDIT CARD at 0%, why exactly do you think I'm a 20% interest customer?

Now, to add insult to injury, I tried to open up a 0% card offer that was offered on Mint. They decided to offer me an interest rate of 18.99% after running my numbers. I was freaked out and so I went and checked my credit score/report again, and nothing has changed since last time I checked! I don't know if its my new job (?? same field as last time) or what, but it seems like having excellent credit isn't enough to even get the \"pre-selected\" offers anymore.

Anyone have any ideas on what I should do, re: moving the balance? My last resort, I think, would be to suck it up and pay as much as I can to the card every month, simply because I don't want to reward BoA for their shitty behavior. I really want to stick it to them, pay it off in full (via transfer, loan, magic lottery) and tell them to go F themselves.

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Penny
April 13, 2009 3:25 PM
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@hedonia: I would stop focusing on the 0% offers an try to find a decent rate under the double-digits.

You could try and get a personal loan. I consolidated to a Lending Club loan (as I said below). I feel much better giving random investors my money than CC companies.

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SadSam
April 13, 2009 4:43 PM
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@Penny Plastic:


I would also try calling BOA again until you get a better answer, sometimes it depends on which agent you get and how they are feeling on that particular day.

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Penny
April 13, 2009 5:25 PM
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@SadSam: Totally agreed, give it a few runs - you'll find a lot of different personalities at call centers.

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varro
April 13, 2009 2:55 PM
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@hedonia: Call up B of A and tell them that you talked to their debt management company and they told you to file for bankruptcy - then consider it.

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esarge
April 13, 2009 2:25 PM
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I wouldn't bother with an EECB on this one or complaining to anybody at the bank. They won't bother listening. They're doing this because they're very close to being insolvent and need to get as much money in as possible.

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Saboth
April 13, 2009 2:31 PM
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These credit card companies are going to price themselves right out of business. 25% interest rates might fly with the people with 600 credit scores, but when you work hard to maintain something like 750+, you expect better treatment. Citibank did this to me last year (although I called and had my rate brought back down to 9%). I'm currently in the process of using the snowball method to pay off my credit cards (although it will still take about a year). After that, they can look forward to me paying off my balance monthly.

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TouchMyMonkey
April 13, 2009 6:30 PM
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@Saboth: What would happen if we all decided to start paying cash for everything? Would the whole system collapse like a house of, er, cards?

I have serious doubts about the wisdom of squeezing one's best customers, the ones who have carried their cards for many years. Piss me off (FICO 830 and no balances), and I just shred your stupid card. When I run out of cards, I start using cash for everything.

Eventually, this recession will end, and those of us who are fortunate enough to not have any debt will be the ones who start the consumer ball rolling. I am the United States Fucking Navy, and the credit card company is this little pissant band of pirates farting in my general direction like Terrance and Phillip after a trip to White Castle. The SEAL team has already gotten the operations order. You do not want to piss me off.

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thebigbad
April 13, 2009 7:13 PM
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@HurtsSoGood: \"I have serious doubts about the wisdom of squeezing one's best customers, the ones who have carried their cards for many years. Piss me off (FICO 830 and no balances)\"

It doesn't matter how high your credit score is, if you have no balance then you aren't one of their best customers. They make very little money from you. Trust me, I worked for a credit card company. You may think since you have been a loyal cardholder since the invention of credit cards that you deserve some sort of special treatment and realistically you do. CC companies don't care. To be honest, someone who has had a card for 20 years and pays their balance in full is actually less valuable than someone who doesn't have a card at all. It is far easier to keep an existing card member than recruit a new one.

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PunditGuy
April 13, 2009 2:34 PM
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> always pay my balance in full

What's the problem, then, really?

Someone explain to me how much this affects him if he pays off his balance in full for purchases made during the billing period. Even if they're using Average Daily Balance to compute a finance charge, the difference between 15% and 25% APR for his charges in a one-month cycle is not going to be more than a few bucks, even if he charges a lot in that billing period.

If he decides it's worth walking for a few bucks, so be it. As an alternative, he could always just keep the card with a $0 balance, and charge a pack of gum to it every 6 months or so.

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nakedscience
April 13, 2009 2:53 PM
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@PunditGuy: Yeah, someone who has always paid in full can suddenly lose his or her job or get really sick or something. Shit happens.

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Murph1908
April 13, 2009 3:33 PM
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@nakedscience:
I pay my balance in full every month.

However, there have been a few times over the past several years where I did carry over a balance, such as after my wedding/honeymoon, and when we did some work on our house. Both times I took an extra month to pay.

So yeah, I too would dislike a rate hike, even though it doesn't affect me often.

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Baccus83
April 13, 2009 2:50 PM
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@PunditGuy: What about if there was an emergency? Suppose something catastrophic happens and his emergency fund can't cover it. He'll need to use his credit card. In cases like that, 15% versus 25% can make a big difference.

But honestly I think it's more of a respect thing. We work hard to get our credit scores to a certain level. We do this so that we can be treated with a more than a modicum of respect by the people who are issuing us credit. What does it say when somebody who pays their bills on time and has a FICO in the 800's has their rate raised by double digits? What was all that work for?

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cc82
April 13, 2009 2:36 PM
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I still use my BoA card as my primary CC since I pay it off every month and it has a decent rewards program, but between this and them cutting my credit limit, I might start using my Discover cashback card instead...

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Goatweed
April 13, 2009 2:38 PM
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it used to be if a cc company was screwing around, I'd jump to one of the other bank cards that sent me great offers in the mail. Amazingly, all of those solid offers have dried up (except for Capiatl One, I think they feel if they send me enough crappy offers I'll take them up on it just so they stop sending me mail). So where does one go to get a decent credit card these days? Everything seems to have a variable rate attached to it.

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PencilSharp
April 13, 2009 2:57 PM
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@Goatweed: Again, I'll say it, until the sun falls from the sky:

Credit Unions are your best friend. Very, very few play fast and loose with your finances, and nearly everybody in the universe qualifies for at least three.

Credit Union Locator

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Goatweed
April 13, 2009 3:08 PM
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@PencilSharp:

Thanks! I'll take a look and see what offers I might be able to get. The wife has a BofA/Amex hybrid card that we use solely for Costco purchases (and some teacher supplies) with a low rate. We recently paid off a VERY large balance on it and have been keeping it at 0.00 or at most a few hundred dollars for a month or less so I'm sure we'll be receiving one of these \"thanks for being a great customer\" notifications any day now.

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Anonymous
April 13, 2009 2:39 PM
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Wait, Kevin \"always pay[s his] balance in full\" but now decides that he \"may just pay off [his] balance\"?

If you ACTUALLY always pay your balance in full, why does it even matter what your APR is? I have never, ever, carried a balance on my credit card. Why should I care if my bank wants to make my APR 1000%? I don't spend money that I don't have.

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Anonymous
April 13, 2009 2:42 PM
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Yep, BoA increased my two cards with them. One card had 7.9% fixed jumps to 23.95 variable, the other 7.9% fixed to 13.95% variable. Plus on the new higher interest rate card, they claim a change in my credit file as the reason for the increase, even give an Experian contact number to call to get a FREE copy of the report. Problem is on calling the number, Experian claims no one has accessed my credit file in the past 6 months.Just BS.

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wcnghj
April 13, 2009 7:49 PM
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@SurotamaNanobug: SIGH

Go to experian.com/reportaccess

Click the requests for my credit history. You will see it there as a soft inquiry.

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nakedscience
April 13, 2009 2:52 PM
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CRAP. Working on trying to pay a BofA MasterCard now as we speak.


Whatever. Not something I can overly worry about, I guess. Just keep on truckin'. I need it for car emergencies (I travel a fair amount in the middle of the desert), so I don't want to cancel it. Sigh.

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econobiker
April 13, 2009 2:56 PM
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Discover just sent me a % rate change notice in the mail. The letter notice said that I could opt out by sending a letter to a certain address by a certain date to close the card and pay off the balance.


This notice also said that if I used the card after that date ~~~even if I had sent a letter opting out already~~ that the card use would be considered approval of the new rate.


Question: how can use of the card be considered agreement to the new rate or acceptance of the new contract rate? If this is so then can I send a letter to Discover saying that my new rate is 1/2 of their %rate offered and acceptance of my next payment check is aggreement to this 1/2 rate?


I do not understand how the card companies can say just using the card accepts this rate change yet I cannot do the same. Anyone care to explain this to me?

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Coles_Law
April 13, 2009 3:19 PM
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@econobiker: It's in the Terms of Service, sadly.

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econobiker
April 13, 2009 3:46 PM
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@Coles_Law: That the consumer cannot change the contract with them is in a \"Terms of Service\"? I thought both parties could change contracts as long as each notified the other?

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floraposte
April 13, 2009 3:49 PM
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@econobiker: No, they both have to agree. You agreed to their being able to change things when you took the card. They've never agreed to your being able to change things.

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econobiker
April 13, 2009 4:29 PM
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@floraposte: Ok, now I understand that their contracts are written to prevent the consumer from changing anything. Your explaination makes sense in that they prevent changes from the start since we know these companies completely stack the deck against the consumers.

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Mike Lisi
April 13, 2009 2:57 PM
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I too, just received notice of a rate hike to 24.99% on my M&T credit card. I work at a credit union so I asked the people here what they offer and they have a fixed rate 7.9% platinum card and a 10.9% fixed gold card. Needless to say, I'll be switching over very shortly. It might be worth the trip to your local credit union to see what they have to offer.

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bilge
April 13, 2009 2:58 PM
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Call the bank and ask if they'll lower your rate. No need to get argumentative, just something like \"I have another card with a lower APR that I'll probably use instead of my BoA card unless you can lower the rate for me.\"

If they don't lower the rate, go shopping for another credit card and throw the BoA card into a drawer.

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Penny
April 13, 2009 3:18 PM
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My score is only in the low 700s and I carry balances, so of course I've seen my rates go up. A few months back I consolidated some debt onto a Lending Club loan and I've stopped using my cards.

My parents, on the other hand, have a very high score and don't carry balances. Their rates have gone up.

Seems like everyone's has.

I agree with bilge about giving them a call. It couldn't hurt. However, must people can't shop for cards right now, so turning to another lender may not be a possibility. Doesn't mean you can't bluff, however.

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Cocoa Vanilla
April 13, 2009 2:58 PM
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So, they're pulling the same stunt Chase pulled? Seems the only options the customers have is to reject the increase, pay off the balance, and close the account, or accept it.

I'm not sure if \"pay off\" means continue making the minimum payments, or if it means send a check for the whole thing. But if it means the latter, then this is ridiculous.

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tbonekatz
April 13, 2009 5:32 PM
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@Cocoa Vanilla:
\"Payoff\" means you keep making at least the minimum payment until it's paid off.

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floraposte
April 13, 2009 3:02 PM
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Over on LiveJournal there's somebody at a third-party call center that handles the BOA calls, and she's getting swamped with people calling just to complain about the hike. Clearly people are really, really unhappy.

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Guvmint_Cheese
April 13, 2009 3:02 PM
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I canceled my BofA credit card along with my bank account a few years ago when I switched to a credit union. I then shopped for the best rewards card, and at that time it was the Citi Platinum Dividend card, which paid 5% back on gas/groceries/drug stores. Then they figured out their reward was too good, and lowered it to 2% or something, so I shopped around again. I've got an HSBC card now that pays the 5% back on those items, and I love it (aside from some customer service issues, which I grudgingly accept because the reward is so good).

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Guvmint_Cheese
April 13, 2009 3:53 PM
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@Guvmint_Cheese: One additional footnote, the APR on the Visa card at my credit union is 6.9%, and it's always lower than whatever the lowest going APR is at major banks. Stop using banks, you'll love it.

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TCama
April 13, 2009 3:16 PM
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I just paid off my BofA balance a month or so ago, and as of the last statement, my rate is 6.99%. But I got the card less than a year ago, so maybe I'm still in a honeymoon period.

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duckman66
April 13, 2009 3:20 PM
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My rejection letter to BoA:


FIA Card Services, N.A.
P.O. Box 15088
Wilmington, DE 19850


Dear FIA Card Services, d/b/a Bank of America,


On April 9, 2009, I received a letter from you informing me of Amendments to my Credit Card Agreement of my Bank of America Platinum Plus Visa card, which include an APR increase from a fixed 7.9% APR to a variable 16.95% APR.


I am hereby rejecting the Amendments noted in the above correspondence, and demand the existing terms of my Credit Card agreement (which include a fixed 7.99% APR) remain unchanged.


Name on the card: (My legal name)
Account Number: (the account number)


I have been a loyal credit card customer since 2004, as well as maintain a mortgage with Bank of America. Despite this relationship, and the fact I have always paid more than the minimum balance on my credit card ahead of schedule, you have reduced my credit limit by $7200, and have now proposed to increase my APR 212%, since February 2009. I find these actions quite detrimental to our relationship, and am currently considering taking my business elsewhere.


Your cooperation in my rejection of your Amendments to my Credit Card Agreement is appreciated.

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Sunflower1970
April 13, 2009 3:29 PM
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WTF?

Greeaatt. First Time Warner Cable is gonna cap my 'net usage, and now BoA is going to jack up my rate?! (Rate's at 9.90% now, so I'm sure I'll be hit) Luckily the card will be paid off this month. I don't want to close it, since I've had it for over 10 years and my credit rating's near 800, but I sure as heck will not be using it any more. :-(

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JE
April 13, 2009 3:33 PM
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I have two credit cards and one line of credit with BoA. I am currently carrying a balance on one CC (balance transfer) and the LoC.

BoA raised the rate on the CC I'm not carrying a balance on. It's now close to 20%

I have no idea what their criteria are, but thankfully it's the best possible scenario for me.

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rainbowsandkittens
April 13, 2009 3:41 PM
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I got the same letter last week and was not pleased. They wanted to take my 8.99% fixed and increase it to the 16.99-24.99% variable rate. When I called the number on the letter to reject the change, I did not press 1 when prompted--if you wait about 5 or 6 seconds, you'll be given a second option to speak with a card member services rep.

Because I also keep a checking and a large money market account with BoA, I explained to the rep why I am an ideal customer and don't deserve the new terms. She tried to explain that it was the economy and not me--to which I replied that good customers like me were all the more important for their business. In the end, they raised my rate by 1% to 9.99 fixed, but across all credit lines, including the cash advance. While this is a feature I hope to never have to use, the overall new terms ended up being better than my old ones. Given all of the horror stories I frequently read here and considering the inflexibility of my and my husband's other cards (I'm looking at you, AMEX) overall I've been very happy with how BoA has treated me.

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Sunflower1970
April 13, 2009 5:17 PM
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@rainbowsandkittens: Thanks for this tip. If/when I get a letter I'll try this out.

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econobiker
April 13, 2009 4:31 PM
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@rainbowsandkittens: Watch out that the phone call does not actually affect the change. Get their new terms in writing and forward these in a letter to the opt out address.

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Anonymous
April 13, 2009 3:52 PM
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I got the notice of increase. I don't use the card more than once a year for $20 to keep it active, almost always 0 balance, account goes back probably a decade, and my credit is perfect.

It seems pointless for them to want 17% from me instead of 13%. 17% of $0 isn't going to make them more $$ than 13% of $0. Already wasn't my favorite card, still isn't.

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Josh Ford
April 13, 2009 3:59 PM
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What a craptastic move. This happened to my wife too. We were HUGE BOA fans until this. We're pulling everything out of BOA. They can go to hell.

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TShK
April 13, 2009 4:21 PM
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I just got my 7% B of A card hiked to 14%. It's a shame, that was my first and primary credit card. Upon notification I declined the rate hike. My account made B of A money too. I guess I'll take my business to my 10% US Bank card

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DailyRich
April 13, 2009 4:23 PM
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Got the same letter, about a month after they lowered my credit limit to about $200 above my balance. I haven't been using the card at all, just trying to pay the balance down, so it seems like they're trying to get as much money as they can out of accounts that aren't being used much.

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Anonymous
April 13, 2009 4:29 PM
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My wife and I put $3000 worth of building materials on our BofA card just to find out a couple of weeks later that we got caught up in the rate increase dragnet. As with others, we have an 800+ credit score and pay of the balance each month.

As with many other people, we called customer support and got treated with disdain so we told them to just close the card. My wife said the rep was on the verge of gloating when he said \"closing a credit card with a balance will be a big negative on your credit report.\" She told him we had no intention of closing with a balance and would he please debit our bank for the amount of the payment and close the card? Apparently this flabbergasted him so much that he couldn't get a coherent sentence out for the rest of the transaction. :-D

Good-bye BofA, never liked you anyway! Hello Credit Union-related credit card!

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kidthunder
April 13, 2009 4:35 PM
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I think that BoA is hitting all the old MBNA customers that they bought as I have 3 old 7.9% fixed MBNA card and got notices on 2 of them that they are going from a 7.9% fixed(so much for that idea) to a 8.99%+prime. So the new rate they are adding to the prime is more than the whole rate was before. Both of these card are carrying no balance so I do not know how this fits their \"group\" they are raising unless they are just raising all the customers with these rates. I had an arugement with them when they wanted to raise my cash advance apr from 7.9% fixed to 24.99%. I went around and around with a manager at the time and he said why should I care as I never use my cash advance but they had to raise it due to the risk involved with taking a cash advance. I then countered with if I never took a cash advance then how do I represent a risk. no answer of course except the same line.

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Kat@Work
April 13, 2009 4:40 PM
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Yup, BoA lost me as a customer once I got that damned letter last week. I have excellent credit, never ever late on any payment (and not just to them) and have a balance of $4,000 (I pay $500 a month - we're remodeling an apt.) on an $11,000 credit line. My interest rate is jumping from 7.99% FIXED to 14.99% VARIABLE.

Screw you BoA. I'm rejecting it this week, credit ding it will cause and all.

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TShK
April 13, 2009 5:08 PM
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@Kat@Work: This is exactly what happened to me right down to the interest rate and going from fixed to variable. That whole \"fixed\" to varible really ticked me off

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Deanna Lidiya
April 13, 2009 5:10 PM
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Wow. Makes me glad I don't have a credit card anymore. When I need a loan, I'll stick with a loan shark. Sure, it comes with a basic kneecap liability standard, but there will be fewer surprises and the interest rate is about the same.

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Anonymous
April 13, 2009 5:21 PM
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I received a notice this weekend that my rate was going up from 9% fixed to 15% variable (same story, high FICO, never made a late payment in my life, etc.). I contacted my credit union and was able to get a card with a 7% fixed rate and a great intro APR, as well. I transferred the BofA balance and will not do business with them again.

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Brian Taylor
April 13, 2009 5:28 PM
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I just received my letter the other day, rewarding my patronage with a doubling of my rate. CSR patched me over to apply for a BoA business card, saying that I don't need to even have business to get one, and can retain a lower interest rate. Sounds fishy to me.

It is sickening that these jackasses have taken billions from our pockets in bailout money, just to turn around and take more from us in increased interest rates. Merry Christmas, BoA. F*** you.

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Anonymous
April 13, 2009 5:28 PM
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Back in November, BoA raised our rate from 8.49% to 24.99% -- and I didn't notice until the statement came with a significantly higher minimum payment. Yes, we carry a balance. And yes, I didn't notice the amended terms and missed the period in which you can reject the changes.

But I wrote a strongly worded letter anyway saying that we were good, long-standing customers and if they didn't rollback the rate change I'd do everything possible to immediately pay off the balance in full -- and thereby give them nothing more in interest payments. I demanded they reply in writing within 10 days.

I heard back on the 9th day that they'd honored our rejection, our interest rate was lowered back to 8.49%, and the addition interest assessed was refunded.

As a result of this, I swore never to use a credit card again, and I won't. But our account wasn't closed, and our available credit just continues to increase as we pay off the balance. I presume that if we did use it again, the new rates would apply, but I don't know exactly.

FWIW.

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josh8241
April 13, 2009 5:39 PM
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I have a balance of around $1,500 on my Bank of America card. You can bet I'll be using some of my tax return money to pay that off!

It used to be my lowest rate credit card...it's now my highest rate credit card. And I've never been late on my payments.

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hankrearden
April 13, 2009 5:45 PM
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<---- pays in full anytime something posts.


Meh. F 'em. Pay it off then drop the card. They aren't worth your time.

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failurate
April 13, 2009 5:46 PM
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I think this is Ken Lewis' attempt at getting fired by the Government.

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jacromer
April 13, 2009 5:49 PM
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I want to say that I've read somewhere that a person's zip code could affect their credit card interest rate.

For example, I may be a totally responsible, pay-in-full credit card holder, but if my zip code area is experiencing a high amount of foreclosures or CC delinquencies, then my interest rate would be increased.

I cannot recall what website I read this on... maybe bankrate?

But nonetheless, what BofA is doing is legal, it's just not right if they can't specifically explain why.

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Anonymous
April 13, 2009 5:50 PM
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I got the same letter last week.Perfect credit score. Good, long relationship with BoA. I have 3 cards with BoA this is the only one that carries outstanding balances and is the only one that got the rate hike, how convenient. And this was an MBNA AmEx that got taken over back when MBNA was bought by BoA. Whatever. time to pay it off and start using another card. I'll keep it open to buy packs of gum or coffee.

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xip
April 13, 2009 6:00 PM
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Ya, they did that to me. It went from 7.9% to 12.9%. It's kind of annoying but not unexpected.

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Anonymous
April 13, 2009 6:42 PM
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My Visa is now 27.99% fixed with a 15k+ balance. Ouch. I called on a weekend and a rep told me to talk to credit services and that I'd be eligible for a better rate. When I called back I was told this was not true, they couldn't do anything and there was no way to know if the rate would ever be lowered.

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Felix the Cat
April 13, 2009 6:43 PM
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Over the years I have been an on & off again BOA customer. Just a few months ago I decided to forgive them for past screwups and open a new checking account for my direct debit SSN payments.


Boy was that a mistake. With no notice at all and after just two days of having this 'new' account, they abruptly closed it and it took about 6 weeks to get my opening deposit back.


I won't bore you with it you can see the full details at: [bankofamericageorgiasucks.blogspot.com] if you are interested.


I can say that during the time I was trying to get this nonsense sorted out with their 'Executive Customer Service' I did some online research on other BOA complaint sites and I concluded that this bank is a VERY VERY bad place to try to do business. My little complaint pales in comparasom to the total crap they have given so many other people. You really need to look at some of these online sites and complaints before you decide to open accounts with BOA. Here is one site FYI:


[www.bankofamericasux.com]

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gnubian
April 13, 2009 7:12 PM
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My interest rates have gone down over the course of the last 2 months .. 9.99% -> 8.99% -> 8.74%(current)

Are they targeting customers who were originally MBNA card holders? No .. my card was originally an MBNA.

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kwsventures
April 13, 2009 8:28 PM
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The best way to break the credit card debt addiction in this country is to raise rates and fees and make it too painful to rollover credit card debt month to month. The good old days of buying junk, putting it on the old credit card and never paying it off is, hopefully, going to be over soon.

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MsClear
April 13, 2009 10:05 PM
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I started with a MBNA card back in 04, which came with a 5.2% interest rate. It got bought out by B of A, which raised it to about 11%. For a good year, it was steadily dropping, till it got to about 7.37%. I got one of the notices last week. My interest rate is going up to 13.74%. Whatever. I no longer allow myself to carry a balance. I finally figured this out when I saw a $5 finance charge on some little balance I hadn't paid odd compared with my ING savings interest. Took me long enough, but at least I got it in time not to have to worry about this latest crap.

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Anonymous
April 13, 2009 11:17 PM
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I'd like to add one positive to this ordeal (of which I am a member)I canceled my Xbox Live auto-renewal that was attached to this card. I had paid for 12 months, good through November 2009. Xbox Live said they'd send me codes to replace my Gold Account as I was already signed up till November. They sent me four 3 month renewal codes !

4 months of Xbox Live for free !

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Anonymous
April 14, 2009 12:58 AM
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Wow! My letter came, and the rate is raised to \"only\" 20.74% from 10.99%. Luckily I have no balance, so I will needle them with tiny charges here and there so it costs them money to have me as a customer.

I wish they would stop sending the bi-weekly balance transfer checks. It's like they are two different banks. First, they discourage my business, then encourage it. BoA, make up your mind!!

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Tankueray
April 14, 2009 1:20 AM
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They offered me another card as a consolation prize. I called, argued that I have perfect credit, yada yada. It's not you, it's the \"financial climate\". We can't go back to your 7.9%, but you're eligible for an upgrade! How about an alumni MasterCard at 8.9%? No thanks, I don't need any cards. I had just grown fond of the platinum Amex. Back to regular, non-credit Amex for me.

The only reason I keep bank accounts there is because it's a condition of my mortgage. Maybe they'll go under because of all this and my mortgage will be forgiven by the Government! [/sarcasm]

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Grrrrrrr, now with two buns made of bacon.
April 14, 2009 4:27 AM
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BoA pulled this on me too. My 7.99% card goes to 13.99% variable. I figured BoA looked at my account and said..\"hey, this guy has a balance and probably can't pay it off, so we'll jack up the interest rate on him and there's nothing he'll be able to do!\"

The truth is, I only use the card for convenience...I always have the cash in the bank to cover it. So, I sent them a check and paid off the balance.

So, there you go, BoA..into the \"credit cards I don't ever use\" drawer it goes. Instead of doubling the amount of interest you'll make from me, now you won't make anything at all. Your loss. I'm sure with an 800+ FICO score, I won't have any problem finding another card.

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u1itn0w2day
April 14, 2009 4:45 AM
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Didn't Bank Of America declare a multi-billion PROFIT last quarter ? How much TARP did BoA get ?


It's like a sense of entitlement to gouge and screw the customer along with the economy and credit card industry . And what does this have to do with opening up the lines of credit or even \" securing \" their own credit . How does raising the interest rates encourage the use of your product or make it easier or more likely for your customer to pay YOU back WITH interest/profit for YOU .


At this point I could actually empathize witht the BoA credit card customers that start walking away from their bills like these foreclosures .

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gman863
April 14, 2009 6:48 AM
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BoA is attempting to rape consumers under the assumption most will do nothing more than lay back and enjoy it.


Customers with a good payment history and credit rating can call BoA's bluff with a simple phone call stating \"I have a pre-approved offer from (name of other bank) for a 9.9% fixed interest rate - do you still want my business or should I switch?\" If this fails, opt out of the change in terms and be sure to cancel any auto-payments (utilities, gym memberships, etc.) so the card is not used/billed after the change in terms date.


Finally, a warning on Credit Union cards: Many credit unions (including mine) have turned their credit card operations over to a division of BoA. Before you decide to switch to a new card, ask about this. If it's a BoA card disguised with the Credit Union logo, you may end up with the same shitty service and not be able to transfer \"other BoA balances\" (as noted in the fine print) to it.

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AstraBabble
April 14, 2009 5:04 PM
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hmmm, yet another reason say to to hell with FICO. It so doesn't matter. companies are going to do what they want anyways. Screw credit altogether, pay cash. you don't need credit if you always pay cash. And it is more than possible to pay cash for cars and houses. If we did, perhaps people would be more frugal when buying and the housing market wouldn't have gotten so inflated.

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Anonymous
April 14, 2009 6:48 PM
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Just got off the phone with a CSR. I told her my 800+ FICO and near-perfect 11-year history with them didn't justify them raising my rate from 7.24% to 13.24%, mentioned that I had been approved for a 9.7% offer, and asked whether they would like to keep my business. She condescendingly said, \"You must not have read the letter that came with your notice. It's not because of your FICO, but a change in our business practices.\" Of course I read the #@$%ing letter. So I'll get the new card, transfer the balance, and BOA will lose my business. I've actually liked their service over the last 11 years... I'm a little sad. Weird.

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Anonymous
April 14, 2009 9:20 PM
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Unfortunately, the company I originally got my card through sold the account to BoA about 6 months ago. At first, I was pleased with their service, but I also got one of the rate increase letters last week.

They wanted to raise my rates from 6.9% to 22.9%. I ended up rejecting the raise in the rate. This is the 3rd card that has tried to do this to me. Each time I reject the rate increase and pay off the card as quickly as possible.

Mind you, I'm also one of those customers who always pays on time, always pays much more than the minimum payment, and has never gone over my limit or been late on a payment.

Greg

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Shali
April 15, 2009 12:27 AM
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We received a notice also, being a good customer carries no weight anymore.

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adrew
April 17, 2009 2:47 AM
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I just got a letter about my BofA Platinum Plus Visa. I have a $15k limit on it and frequently carry a balance on it, though it is paid off right now.

I assumed mine was going to be the same nastygram y'all got, but it just said that there will be higher transaction fees on balance transfers and cash advances, and that foreign transaction fees are going up.

That's it. I guess I'm their friend.

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