Bank of America follows the pack by raising interest rates in June

Posted by Lauren at 04/09/09 09:56 AM

BofA announced that it will increase interest rates for all customers who have current rates below 10% and carry a balance. Even those of you who never pay late, have great credit scores, and are longtime BofA cardholders will see an increase.

This is clear evidence that credit card companies are just trying to make as much money as possible from all of their customers during the year and a half before the Fed’s credit card rule goes into effect. After July 2010 these companies won’t be able to raise rates on existing balances unless you are 30 days late in making a payment. But for now, everyone has to watch out. NOTE: Congress may also pass consumer friendly credit card protections that could go even farther than the fed rule.

Unfortunately you don’t have all that many options to deal with these rate hikes, but here’s a couple things you can do:

1. The best way to deal with this is to pay off your balance, if at all possible.

2. The next best option is to opt-out of the increase. Basically this means that you lock in your current low interest rate while you pay off you balance. But remember if you opt-out, you can’t use the card for new purchases until it’s paid off.

Are you a Bank of America credit card customer? Tell us your story.

Comments (3)

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1 Posted by Marc at 04/10/09 01:14 PM

I am furious at BofA new tactic to soak loyal customers. I have been a BofA customer for 27 years! I asked why they were changing me to a variable rate and raising that by 5 points. No real response besides the form letter. I have never been more than 5 days late and only then because they won't give your a firm due date on my charge account. I called once when I found out I was 4 days late on a payment. I called and said if I made the payment on a certain date last month(and it wasn't late), then why is the payment late when I made it by the same date this month. I let that go because they refunded the late fees.I have twice the amount in cash in my BofA accounts as I owe on my credit card (my only card)and am only 1/2 at my limit. This is the last Straw. I'm moving all my accounts to a local Credit Union who still has personal contacts and all the services I need. 27 year account holder, and they treat me this way!!So I payed off the card and Bye Bye BofA.

2 Posted by Lauren at 08/11/09 09:48 AM

My credit card company raised my rate during the last statement period. When I called today to ask about that, I was told that all credit card interest rates were frozen pending the federal regulation on credit card reform. How come they can raise it but I can't ask to have it adjusted, given loyalty - 15 years+, great payment history, etc? What do federal guidelines say about interest rate freezes - or is that a line of bull?

3 Posted by jack hooper at 05/24/11 03:29 AM