Bank Of America Cridit Card RIPOFF - changing contracts at will Wilmington Delaware
Due to financial difficulties, that this bank didn't help with, my account with BOA was closed about 2 yrs ago. Since then, and up until then, I had made my payments every month on time. I received an ebill from them today showing that they have raised my minimum payment to more than double what it had been for the previous 2 yrs. I have had this card for 15 yrs.
I called and spoke with an account rep, who explained that they have changed the way they calculate payments due saying that they now calculate the interest, + 1% of the principle. (she then tried to get me to apply for a debt consolidation loan, I was not amused at all)
I am sure that I am not the only one this is a serious issue with. How can they just up and change the way they calculate your payment? Especially when it creates such an increase? I didn't sign and additional account contract with them. According the the rep -Alice in Pacadina, CA a notice of this change was sent out last Jan - I told her that, I may have received it, but how many people are going to remember something they received 11 mos ago that they wouldn't understand without a lawyer anyway?
This is just plain wrong, and I don't see how they can get away with it.
I have a 100% disabled husband and an 8 yrs old, so every penny, every month counts - I cannot afford to pay this new payment they have assessed and this will force me into bankruptcy - isn't there anything that can be done?
I have notified the Attorney Generals office in FL, of whom I have had a lot of assistance regarding this company in the past - I just hope they can help with this new issue.
Something has to change with the way the govt lets these banks do anything they want!
Mary McCarthy (Pompano Beach, FL)
Mary
Pompano Bch, Florida
U.S.A.
1 Updates & Rebuttals
Stile
Phoenix,Arizona,
U.S.A.
Not a ripoff
#2Consumer Suggestion
Thu, November 08, 2007
This change was actually a federally mandated change late last year, but may have only been recently applied to collection accounts. Essentially, the logic behind the government's decision was that if a customer only pays their minimum payment, it may take them many years to pay off a balance. However, if they are forced to pay a fixed percentage of the debt plus interest, then they will pay off the debt much more quickly (a few years, instead of 10 or 20). It's actually to your benefit to pay it off faster, even though it hits your wallet harder.
As far as the statement insert, you have to read everything you get from your bank. You have a contract with your bank that can be amended at any time. Banks typically send out updated agreements on a yearly basis, but they may send amendments any time. When you ignore your statements, particularly on your credit card, you're apt to get an unwelcome surprise.