Bank Of America CHANGED OUR CREDIT CARD FROM FIXED TO VARIABLE RATE Nationwide
I am reporting how Bank of America has changed our long-time (over 10 years) credit card rate from a fixed rate to a variable rate and how we had not signed up for such a rate on our card and never sign up for cards with variable rates. I understand that if a person has made late payments or only the minimum payment, the CC companies do these things.
I understand that under the law, the person is able to pay off the existing balance at the old rate, while the new rate would apply to only new purchases after the new rate kicks in. This is not the case with us. We have excellent credit, and we have never been late with a payment, and we always pay extra. (Usually close to double the minimum payment).
Bank of America is also not honoring the old rate to pay off the existing balance. They now say the existing payoff balance is subject to the new, variable rate! We are not allowed to "opt out" of the variable rate being applied to the existing balance and only applied to new purchases, oh no, the existing balance is payable under the variable rate. We used the credit card with the understanding that we had a certain fixed rate on those purchases, and now they change our rate on the existing balance in midstream.
Isn't this illegal? What can we do? It's bad enough that they give loans, credit cards and bank accounts to illegals, that they got bailout money from the taxpayers and that they used part of said money to buy that loser company Merrill Lynch at twice its value. Now they're claiming "tough economic times". They brought it on themselves, and they're helping to cause more "tough economic times" by these actions!!
Marinermama
LOVELL, Wyoming
U.S.A.
4 Updates & Rebuttals
Robert
Buffalo,New York,
U.S.A.
You are mistaken.
#5Consumer Suggestion
Thu, July 30, 2009
""I understand that under the law, the person is able to pay off the existing balance at the old rate, while the new rate would apply to only new purchases after the new rate kicks in.""
I believe you are mistaken. Every notice I've received in the past when my bank attempted to raise my interest rate indicated that if I continued to use the card (make additional purchases) that the NEW HIGHER rate would apply to the entire account balance.
Also, the "new law" you are thinking about does NOT TAKE EFFECT until LATER this year (partially) and fully NEXT YEAR. In the mean time you are stuck with the terms of the notice they mailed you. Further, the new law stipulates that they have to give you a longer NOTICE (time period) before the new HIGHER rate kicks in.
Either way, the higher rate can be applied to the entire account balance. The key question for you is WHAT the written notice that is mailed to you stated. That is what you can hold them to.
Ashley
Springfield,Missouri,
U.S.A.
Opt out
#5Consumer Comment
Thu, July 30, 2009
In order to opt out at the old rate, you would have had to call them and close the account before the new rate went in to effect. All your old purchases would be at the old rate. if you make a purchase under the new rate, that means you agree to the rate increase.
Its all in the paperwork they sent you, and it may be unethical, but its legal.
Ashley
Springfield,Missouri,
U.S.A.
Opt out
#5Consumer Comment
Thu, July 30, 2009
In order to opt out at the old rate, you would have had to call them and close the account before the new rate went in to effect. All your old purchases would be at the old rate. if you make a purchase under the new rate, that means you agree to the rate increase.
Its all in the paperwork they sent you, and it may be unethical, but its legal.
Ashley
Springfield,Missouri,
U.S.A.
Opt out
#5Consumer Comment
Thu, July 30, 2009
In order to opt out at the old rate, you would have had to call them and close the account before the new rate went in to effect. All your old purchases would be at the old rate. if you make a purchase under the new rate, that means you agree to the rate increase.
Its all in the paperwork they sent you, and it may be unethical, but its legal.