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Has Your Bank Of America Credit Card Apr Increased?
Getting daily emails and comments from readers all across the country puts us in a unique position to spot trends in the financial world. One phenomenon we&39;ve been following for the last few months are dramatically rising Bank of America credit card interest rates.
As you know, Bank of America acquired MBNA in June 2005 and became one of the world&39;s largest credit card issuers. There were some technical glitches here and there as consumers had their accounts switched over to the new bank, but the process went pretty smoothly overall. Now, a few months later, Bank of America has been sending term amendment letters to card holders with rate and fee increases. Here are some of the stories we&39;ve heard:
- Del had his interest rate increased from 7% to 25% without ever missing a payment.
- Karl had his interest rate increased from 8% fixed to 22% variable. Bank of America told him it was due to his "high balance" on the account.
- Devender had his interest rate increased from 9.9% fixed to 19.99% variable with no explanation.
- Jim had his interest rate increased from 9.9% fixed to 25.24% variable. Bank of America told him it was due to his high balance and insufficiently large payments each month.
- Kim had her interest rate on a balance transfer increased from 3% to 22% before the end of the promotional period.
- Mitch had his interest rate increased from 5.9% fixed to 19.99% variable.
- Fiona had her interest rate increased from 9.9% to 23.99% without ever missing a payment.
- Bill had his interest rate increased from 14% to 23%.
- Shaun had his interest rate increased from 7.99% fixed (for 9 years) to 25.99%.
- Tammy had her interest rate increased from 9.9% to 22%.
- Brittany had her interest rate increased from 5.9% fixed (for 3 years) to 11.9%.
With 11 reported cases, this is more of an epidemic than a trend. If you have a Bank of America credit card, and chances are you do, check it today to see if your interest rate has increased. If they have, it doesn&39;t seem like there is much you can do to convince Bank of America to lower your rates. Your best bet is to pay off your balance or transfer it to an account with a lower APR. Here are few things to keep in mind:
- Yes, it is perfectly legal for Bank of America to raise your rates. Not necessarily fair, but legal.
- If you are transferring your balance, be sure to investigate the rates and terms for that with the new card. 3% balance transfer fees are pretty common.
- Avoid closing the Bank of America card. Closing older accounts can hurt your credit score. It is better to leave it open and unused with a high limit.
- Don&39;t forget to cash out any rewards or miles that you may have on the account.
- If you let your Bank of America card go "dormant," don&39;t forget to check in on it once in a while. Keep an eye out for sneaky annual fees or signs of identity theft.
- If you have complaints about your account, you can send them to the Comptroller of the Currency at Customer.Assistance@occ.treas.gov, the Federal Reserve Board, the Federal Trade Commission, Consumer Affairs, the Senate Banking Committee, and the House Committee on Financial Services.
And please keep us posted!
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25 Comments:
I have had the same thing happen to me..I had a fixed rate of 12% and they changed it to 25 % on two accounts. Also Chase did the same thing.
Sounds like bait and switch...you get a decent rate and once you charge up the credit card they hike up the rates.
Sounds like bait and switch...you get a decent rate and once you charge up the credit card they hike up the rates.
I called BofA recently and politely asked
for a lower APR. After transferring me to a supervisor he lowered it from 24.9 to 17.9. I didn't have to threaten to transfer my account at all. I had called two times previously and got no action. The trick is to place your call late Friday when they are in a good mood.
I found this blog after googling: bank of america credit high interest. I just found out that they increased my rate without warning. My rate rose from 9% to 15.99%, and I've never been late with a payment, my debt to credit ratio is low, excellent FICO etc. I called customer service and asked them to lower my rate, and she flatly refused, even while agreeing that I am a model customer. She told me to spend thousands of dollars more on the card and rack up more debt first!
Found this website after googling also. I have been customer since 1996 and when I called to check my APR (advice from my supervisor), it is 22% despite the loyalty and good credit score. Thanks for posting this website because BOA made it seem like the problem was on my end.
I had a Barclays Mastercard and they tried to raise the apr from 13% to 23%.
I found this site by googling it. My question is I was approved for the BofA Platium plus with worldpoints a couple of days ago. This will be my FIRST credit card. So my question is, is it worth opening? And if not any advice you have for someone who is first trying to establish credit, tips etc?
In Oct. 2006 BOA sent me an offer to transfer credit card balances at 4.99% until the balance was paid in full. What a surprise I received with the Oct. 2007 statement to see the rate had jumped to 24.98%. Mysteriously, after making 12 monthly payments by the due date BOA did not send me a statement in Oct. '07. What a clever way to get a cutomer to miss a payment. This scam must have been systematic and not just perpetrated on me. Are there others out there with a similar experience?
This happened to us too. We have a credit score in the 700's, have never made a late payment and have a balance less than 50% of our limit, yet our rate was increased to 24.99%! They can't give us a reason and refused to lower it. They did offer a solution, but when we investigated that soultion, it would subject us to an interest rate of 29.99%!
found your site googling also.
i wasnt 15 days late nor 30, or 45 days, but i was 4 days late getting a payment posted electronically via bill pay. my rate jumped to 26%. outrageous.
Just received a reject/accept variable APR ammendment form BOA.
I had to reject the ammendment which means they will wait in the shadows and if there is one single charge on my account the rates skyrocket to 27.99% !!!
Fuggin crooks!!!
Will close my account ASAP!
Just happened to me too, from 12% to 24% for no reason, thanks B of A!!! Please do not apply for their cards.
I have perfect credit, never late on paying Bank of America credit card. I currently have a 8% fixed rate but received amendment letter in mail today telling me it will go up to 16%. I'm closing the account and will never us them again.
I called BoA last night because my APR had gone to 16.99% and I asked them to lower my APR. I told him that I was a loyal customer since 1994 and I always pay ALL my bills on time. I told him if he could not lower my APR I would pay my bill and never use their card again. He told me there was nothing he could do. I hung up and 5 minutes later scheduled a payment online in full for the $1281 I owed and cut up the card in pieces. These people are crooks and don't care about customer loyalty.
I have owned a Bank of America Platinum Visa since 2004. I have just realized that they hitched my rate from 9.99% APR to 19.99% without notifying me. After a long conversation w/ Bank of America, they would not lower my rates... I just missed a payment on my account and it rose to 31.99% APR instantly. Is this like against the law or something?
I just had a similar experience in that I have had 10% for 3 years and now they want 25%. No reason, no negotiating. I had paid it down quite a bit lately as I had a Chase account. At least Chase inquired if I was unhappy with anything and wanted to keep my business. What is B of A thinking? Doesn't make any marketing sense to me!
I just got my statement which says:
Annual Percentage Rate for this Billing Period 35.92%
Amazing.
This is despite a solid credit rating. I pay my bills on time, etc.
My next step..I'm paying all of it down in one cycle. Whether or not they get more business from me depends on how they react.
I have two bank of america credit accounts. I have never been late on any credit card payment and I have always paid double the minimum payment, last year they tried to raise my larger account from 9.9% to 24% and now they are trying to raise my other card from 7.9fixed to 32%. My cards were orginally fleet master card but they sold out to bank of america and bank of america tried to really screw me.
I also have two Bank of America credit accounts. I have one account that I have never used and another account that I carried a balance. I have never been late and always paid more than the minimum payment. They tried to raise the APR in both accounts, so I opted out. I have since paid off my account through balance transfers. They have lost a good customer over this, as I will never have another credit card through them.
I'm right in there with all of you to a point. I actually have been with BOA since the days of NCNB in the late 80's, have a mortgage with them and a 6% card and this 18.99% card. It had been a 10.99% card and just realized that it is now at 18.99%. I called and asked for lower APR, was given 16.99% like that was a big deal. I'll just use my Citi card at 8.99% which I just negotiated 5 min before my call to BOA.
ok if u want sumting be done call and b nice noting will be solve if ur rude or disrespectful. if ur first word is lower my rate right now or if u cnt do it 4 me gt me a manager ur screwed.
people if ur late 2 or more times of course ur rate is gonna go up. and ur rate will nt be more than 32%. that 35% person dnt own a card gt sum education on wt that means. ur an idiot.
guys if u know u owe dnt wait for a staement. pay if u owe I dnt have my statement is nt an excuse. and guys ur rates go up bcuz ur a risk to the bank. like that u payoff faster and gt out asap. dy dnt want to do bussiness with u!!!
Not only did they Double my interest
rate from 11.99 to 25.00,They cut my
available credit from around 12,000 to
4000 leaving me with 125.00 of available
credit.To a creditor this looks like I
am maxxed out and will surely effect my
credit score.
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