It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

Bank of America raising interest rates

page: 1
0
<<   2 >>

log in

join
share:

posted on Apr, 6 2009 @ 01:10 PM
link   
I just received a notice that Bank of America is raising its interest rates, if we want to keep our credit card. Otherwise if we close account, interest rate will stay the same until paid off. We have never missed a payment on any creditor including mortgage or this account. We have excellent credit. I see Bank of America must be hurting. Anyone else receive this letter?




posted on Apr, 6 2009 @ 01:44 PM
link   
I got a similar letter in my AMEX bill a couple of months ago. They raised my rate from a 7.99 to a 12.99. I got more than a little mad about this even though I have read several news articles stating this would be happening. I called AMEX and told them to put the rate back or I would cancel where I was redirected to a supervisor then to a manager with no success. I got so mad I hung up. They weren't willing to drop the rates back down even though I have excellent credit and have had an AMEX card for fifteen years.

Now I have to make a decision to live with the rates or cancel! The only reason I don't cancel is I have only two credit cards. Not to mention I have a boat load of points on the AMEX.



posted on Apr, 6 2009 @ 01:53 PM
link   
Some people are getting shafted even worse. One of my teachers at school had her rate hiked from 6.99 to 18.99, and she has a fairly wealthy husband.



posted on Apr, 6 2009 @ 02:12 PM
link   
I didn't receive any notice for Bank Of America rates going up.

I closed my accounts with them after they took bailout money.

Now the new issue is that US Bank took loot also... Much less than BoA but...

Now I consider closing those accounts too. Still mulling it over.



posted on Apr, 6 2009 @ 02:41 PM
link   

Originally posted by yesIAM
I just received a notice that Bank of America is raising its interest rates, if we want to keep our credit card. Otherwise if we close account, interest rate will stay the same until paid off. We have never missed a payment on any creditor including mortgage or this account. We have excellent credit. I see Bank of America must be hurting. Anyone else receive this letter?


You settle this by closing the account and not paying it off. In fact you will win in the end because they will call you and beg to settle for .10 on the dollar. Forget these crooks. If your credit is as good as you say it is it wont affect your score much. How do I know? I did the same thing to B of A after they did the same thing to me and my score only went down 20 points from 730 to 710 and I finally settled with the for $.10 on the dollar.

[edit on 6-4-2009 by mybigunit]



posted on Apr, 6 2009 @ 04:12 PM
link   
If you fail to pay them you score will be hit multiple times. First you will lose points for being 30 days late, then you will lose more when you are 60 and 90 days late too. It is true that they will eventually try to settle the account, however it wont be 10 cents on the dollar, maybe 25. Anyway if you do not pay you will be hit again when it is charged off then again when the collection agency put the collection on your account. I know someone who did what you are telling the OP to do and it ruined her credit for 6 years. Lost about 100 points for that one account. Your best bet is to call them and tell them you have been a good customer, never missed a payment and will be forced to close you account and transfer you balances to a lower interest rate card if they dont leave your interest rate where is was. Usually, if you are a good customer without missing payments, they will do this. They dont want to lose you as a customer and most people just let them raise their rates without complaining about it. Check out my profile page and click the credit card site, they are some real good balance transfer offers on that site, but whatever you do, dont listen to the guy who tells you not to pay them. It is terrible advice. Also, all the banks are doing this. Here is a good article for you to read. I still suggest calling first, harder to say no when you are talking to someone.
How To Stop Credit Cards From Raising Your Interest Rate


[edit on 6-4-2009 by tide88]



posted on Apr, 6 2009 @ 05:03 PM
link   
Reply to Tide88

No tide Im telling you exactly how it went down and exactly how it affected my score. I didnt pay it period. I pay my other bills but I quit paying just B of A because of what they did. They bugged me for three months and I told them I refuse to pay because of jacking up my interest rate for no reason. He wouldnt do anything about it. On the third month they were willing to settle for $.50 on the dollar. I told them to take a hike and the fifth month they were willing to settle for $.30 and I told them to fly a kite Ill settle for $.10. He checked with his manager and they settled. I checked my score and it only dropped 20 points. That is because I pay my other bills. What Im saying is 100% true but obviously you dont have to believe me.



posted on Apr, 6 2009 @ 05:55 PM
link   
I think it is irresponsible to give the advice you gave. And even if it is true, just because your score only dropped 20 point doesnt mean the OP will too. There are many factors included in your credit score. Making on time payments is not the only one. The OP might have high utilization of his credit, maybe he doesnt have a large variety of loan types. Maybe his total credit lines are not that high. Maybe his BOA card has a 20,000 limit and he has only one other card with a limit of 3000. In fact if he cancels that card without even defaulting it could be a hit to his score. I could go on and on about the factors that effect his score positively and negatively, obviously someone with your knowledge in the credit scoring model shouldnt be giving anyone advice. The argument "well this happened to me so it will be the same for you" just doesnt work in this situation. It maybe the same if he had the exact same trade line, the exact same utilization of credit, the exact same length of history, etc. I could go on and on but I think you get my point. To the OP, here is a good site that discusses how a cancelled card in itself can be negative to your credit scoreCancel Card, Hurt Your Score Also if you want advice on what to do from people who actually know you might try Credit Boards Forum These people actually know what they are talking about. Very friendly forum. Pose your question they and they will steer you in the right direction. If this guy answered the way he did he would be banned for giving such awful advice.

[edit on 6-4-2009 by tide88]



posted on Apr, 6 2009 @ 06:13 PM
link   
Reply to Tide88

Call it irresponsible but as far as Im concerned when banks do what they are doing to us after getting bailed out by us its a declaration of war on us. I paid my B of A every month in fact I paid it in full off every month up until a year ago. They pulled a business line of credit from me in which I had no balance on and was keeping it as a safety net and then they jacked up my interest rate on my CC once again even though I never gave them a reason to.

Im sorry even if my score went down 50 points or 100 points I would of done the same thing. Credit can heal in no time but what these banks are doing is just plain wrong. These banks are covering up blatant theft and fraud with the help of the government and then they pick our back pockets to boot. As far as Im concerned Ill be happy as hell if B of A goes bankrupt but I know it wont happen because my tax dollars will be used to bail them out.



posted on Apr, 6 2009 @ 06:17 PM
link   
I also had BofA just send me a letter raising my interest rate.....Screw em, I'll pay the damn thing off so they get very little!!!!!



posted on Apr, 6 2009 @ 07:15 PM
link   
reply to post by habu71
 



The reason they are raising their interest rates and fees is because people like mybigunit arent paying their bills. They have to make it back somewhere. Mights as well raise the interest on the people who pay. The majority of people will suck it up and pay therefore offsetting some of the banks loses. By not paying your bill you are hurting your neighbor more then you are hurting the banks.



posted on Apr, 6 2009 @ 07:30 PM
link   

Originally posted by tide88
reply to post by habu71
 



The reason they are raising their interest rates and fees is because people like mybigunit arent paying their bills. They have to make it back somewhere. Mights as well raise the interest on the people who pay. The majority of people will suck it up and pay therefore offsetting some of the banks loses. By not paying your bill you are hurting your neighbor more then you are hurting the banks.


Haha so its "people like me" that caused the banks to raise their interest rates and yank lines of credit. Um no sir you have it quite backwards they were yanking lines of credit and raising not only interest rates but all sorts of other fees LONG before people went on a rebellion. As I stated all the other banks I deal with get paid on time or are already paid off because they stuck to their word. Bank of America renegged on their word so I renegged on paying them plain and simple as that. I recommend you do some searches right here on ATS there are PLENTY of threads about people complaining of raised interest rates, fees, and credit pulling long before the crap really hit the fan. Have you sat back and thought to yourself that after a huge credit expansion then pulling the credit might just of played a big roll in this situation? No no its people like me who are at fault....



posted on Apr, 6 2009 @ 07:42 PM
link   
reply to post by mybigunit
 


Guess you didnt read the fine print on your terms and conditions where is says they can raise you interest when ever they want. So it was actually you who didnt hold up your side of the bargin. And BTW if you dont pay and dont settle they could very well take you to court and sue you. It happens all the time. Google search it or go to the creditboards website I posted and you can see all the people that are getting served or taken to court. Sometimes they lose and have their wages garnished. Also they have been raising these rates for years now to offset the loses when people dont pay their bills. There were people defaulting long before now, it was just on a much smaller scale. And yes if everyone paid there bills and there were no default they wouldnt be raising peoples interest.



posted on Apr, 6 2009 @ 07:53 PM
link   

Originally posted by tide88
reply to post by mybigunit
 


Guess you didnt read the fine print on your terms and conditions where is says they can raise you interest when ever they want. So it was actually you who didnt hold up your side of the bargin. And BTW if you dont pay and dont settle they could very well take you to court and sue you. It happens all the time. Google search it or go to the creditboards website I posted and you can see all the people that are getting served or taken to court. Sometimes they lose and have their wages garnished. Also they have been raising these rates for years now to offset the loses when people dont pay their bills. There were people defaulting long before now, it was just on a much smaller scale. And yes if everyone paid there bills and there were no default they wouldnt be raising peoples interest.


And they didnt get my verbal fine print when I called them and told them if they raise my rates Im not gonna pay them. They are raising rates because they took all sorts of leveraged risk they couldnt afford to maintain for the sake of short term gains for huge short term bonuses. Then just like they did in the 20s the banks just quit lending out of the blue. This caused mass defaults because anyone who understands our currency system understand that when money is created interest is attached to it meaning you have to perpetually create money to keep paying the previous interest off. When you cut money to the supply it causes defaults once again just like in the 20s. The only difference is the defaults were shifted to the peons instead of to the banks who got a back stop by none other than me the taxpayer.

Last I checked bankruptcies were skyrocketing for normal peons. How many banks have you seen go under or should I say allowed to go under? Hmmmm. Sorry dude youll get no guilt from me and if any other bank does what B of A did to me they will get the same treatment and that is a big D*** in the A**

[edit on 6-4-2009 by mybigunit]



posted on Apr, 6 2009 @ 08:11 PM
link   
reply to post by yesIAM
 


Don't feel bad even my very conservative and pro military bank that we have been members for over 25 years is now also telling us that they will be raising interest rate.

This is going to target those people that are behind in payments due to many reasons.

Still when you can not pay bills because you have lost your job, you really won't give a crap about interest and bills.

Remember that during the Bush administration the laws on bankruptcy were change to screw the consumer more, I always feel that they knew that the crap was going to hit the ceiling and they were getting ready for it.

While the banks get to screw the tax payer with the bailout, they also get to screw us more with their dirty manipulations of interest rates and favored bankruptcy laws.



posted on Apr, 6 2009 @ 08:18 PM
link   
reply to post by yesIAM
 


It depends how much available credit you have opposed to how much you owe. To get a decent rating your debt needs to be below about 25% of available credit. If say you are at 75% of your available credit in debt and not paying off cards every month, your rating plunges. When your rating drops they raise the rate as the risk of you defaulting increases greatly.

No B of A has not raised my rate. It has stayed the same. I canceled the ones who did and ended up with a new card with the best rate I've ever had. 8.9% That happened recently.

The other thing they are doing this for is if they can not confirm that your income matches what is on the application. If you exaggerate income on the applications you could see rates over 20%.



posted on Apr, 6 2009 @ 08:21 PM
link   
reply to post by marg6043
 


They changed the laws so people couldnt abuse the system and file chapter 7 and wipe clean their debts instead of repaying them. However it didnt work very well because the percentage of people declaring chapter 7 is higher now then it was before the laws changed. You still can file chapter 7 if you are unable to pay your debts, which a lot of people are unable to do because of loss of job or income is too low. So by changing the bankruptcy laws really has nothing to do with them knowing what the future had in store. Although they obviously did do it for the banks advantage, I agree with you there. And you can bet those banks donating a substantial amount of money to those that supported the bill. Guess we are lucky we dont live in dubai, they throw you in jail if you dont pay your debts.

[edit on 6-4-2009 by tide88]



posted on Apr, 7 2009 @ 05:32 AM
link   
reply to post by tide88
 


Oh, I know, I am going to tell you who help write the last bankruptcy bill it was the BofA and guess who co-sponsored and had it in congress in not time our own vice president Biden he was known as the BofA senator the irony.

He received large amount of funding from them when he was running for candidate to president.




posted on Apr, 7 2009 @ 05:57 AM
link   
perhaps the rate increase your reporting might be because the B of A and mbna credit card divisions are merging....


MBNA (maryland bank, north america) has a far flung enterprise with 'arms' in N.America, Europe and Asia...all the more reason to shield themselves from the expected increases in credit card defaults of the newly combined/merged BofA & mbna credit card businesses.


thanks,



posted on Apr, 7 2009 @ 06:00 AM
link   
And of course BoA doesn't require a SS number to get a credit card. I gusee those of us with SS numbers get to pay the bills of those that can't get one because they are illegal!!!



new topics

top topics



 
0
<<   2 >>

log in

join