Complaint Review: Bank Of America

After refusing to pay anything to B0fA for 5 months, they lowered my interest rate to 4% and removed all late charges.

Everything is done by computer and once the computer has posted the fees, they may be very difficult for the supervisor to change. I would imagine the supervisors have to answer to why they refunded your fee and lowered your rate. In the past, it was probably fairly easy for them to do so, but today, when they need all the fees they can get, it is probably much more difficult for it to be done. Due to your history with them, they could have taken off the fees for you and lowered your interest rate to have good customer service, but they don't care about that anymore.

You see, this is exactly what they wanted you to do. They wanted you to screw up a payment so they could charge you the fees and raise your rate. You finally did it and they jumped.

Anyway, your line of thinking will hinder you a lot more than them. First, they may not send your account to collections for about 6 months. During those 6 months, they will add a $39 late fee and a possible over-limit fee (I don't know your limit) every month. Then they will send it to internal collections who will try to collect while they are tacking on those fees. Then they will send it to an outside collection agency who will also add those fees, plus. Your credit score will probably drop around 50-70 points and everyone will hold it against you for the next 7 years.

You need to make the next payment until you really decide what to do so you don't have a 30 day late on your credit report.

As a note, the collection agency may tack on their collection fee, but statutes state they may only tack on what is allowable in your state as reasonable collection fees and they may only tack on that fee if it is included in your contract with the original creditor. I have been trying to figure out what is reasonable in my state, and I think it's 10%, but I cannot find a definite figure. My state's law is very vague about this.

I would say first to try calling again to see if you get another supervisor. Do not get aggravated with him or he may do something else to your account, like close it. You can also try to get another card that you can transfer the balance (which pays BOA), but will lower your rate again.

Keep in mind, almost all credit card companies are playing hardball these days. As I previously stated, they want you to screw up and it is almost impossible to get them to revert your account to the way it was.

Everything is done by computer and once the computer has posted the fees, they may be very difficult for the supervisor to change. I would imagine the supervisors have to answer to why they refunded your fee and lowered your rate. In the past, it was probably fairly easy for them to do so, but today, when they need all the fees they can get, it is probably much more difficult for it to be done. Due to your history with them, they could have taken off the fees for you and lowered your interest rate to have good customer service, but they don't care about that anymore.

You see, this is exactly what they wanted you to do. They wanted you to screw up a payment so they could charge you the fees and raise your rate. You finally did it and they jumped.

Anyway, your line of thinking will hinder you a lot more than them. First, they may not send your account to collections for about 6 months. During those 6 months, they will add a $39 late fee and a possible over-limit fee (I don't know your limit) every month. Then they will send it to internal collections who will try to collect while they are tacking on those fees. Then they will send it to an outside collection agency who will also add those fees, plus. Your credit score will probably drop around 50-70 points and everyone will hold it against you for the next 7 years.

You need to make the next payment until you really decide what to do so you don't have a 30 day late on your credit report.

As a note, the collection agency may tack on their collection fee, but statutes state they may only tack on what is allowable in your state as reasonable collection fees and they may only tack on that fee if it is included in your contract with the original creditor. I have been trying to figure out what is reasonable in my state, and I think it's 10%, but I cannot find a definite figure. My state's law is very vague about this.

I would say first to try calling again to see if you get another supervisor. Do not get aggravated with him or he may do something else to your account, like close it. You can also try to get another card that you can transfer the balance (which pays BOA), but will lower your rate again.

Keep in mind, almost all credit card companies are playing hardball these days. As I previously stated, they want you to screw up and it is almost impossible to get them to revert your account to the way it was.

Everything is done by computer and once the computer has posted the fees, they may be very difficult for the supervisor to change. I would imagine the supervisors have to answer to why they refunded your fee and lowered your rate. In the past, it was probably fairly easy for them to do so, but today, when they need all the fees they can get, it is probably much more difficult for it to be done. Due to your history with them, they could have taken off the fees for you and lowered your interest rate to have good customer service, but they don't care about that anymore.

You see, this is exactly what they wanted you to do. They wanted you to screw up a payment so they could charge you the fees and raise your rate. You finally did it and they jumped.

Anyway, your line of thinking will hinder you a lot more than them. First, they may not send your account to collections for about 6 months. During those 6 months, they will add a $39 late fee and a possible over-limit fee (I don't know your limit) every month. Then they will send it to internal collections who will try to collect while they are tacking on those fees. Then they will send it to an outside collection agency who will also add those fees, plus. Your credit score will probably drop around 50-70 points and everyone will hold it against you for the next 7 years.

You need to make the next payment until you really decide what to do so you don't have a 30 day late on your credit report.

As a note, the collection agency may tack on their collection fee, but statutes state they may only tack on what is allowable in your state as reasonable collection fees and they may only tack on that fee if it is included in your contract with the original creditor. I have been trying to figure out what is reasonable in my state, and I think it's 10%, but I cannot find a definite figure. My state's law is very vague about this.

I would say first to try calling again to see if you get another supervisor. Do not get aggravated with him or he may do something else to your account, like close it. You can also try to get another card that you can transfer the balance (which pays BOA), but will lower your rate again.

Keep in mind, almost all credit card companies are playing hardball these days. As I previously stated, they want you to screw up and it is almost impossible to get them to revert your account to the way it was.

Jim,

It is ILLEGAL for a collection agency to "add fees" to a collection account, ESPECIALLY 20%!! Collections "fees" are ILLEGAL in all 50 states. FEDERAL LAW.

The ONLY "fee" a collection agency can add is contract stipulated interest until charge off, and then after charge off a much lower interest rate as stipulated by federal law.

Don't make comments or give "advice" if you don't know what your talking about.

Now, for the OP,

If your payment history was good with BofA prior to this one mistake, all it would have taken would have been 1 polite phone call to BofA customer service, and the fee and interest rate hike would have been reversed. Guaranteed.

I dealt with BofA for 15+ years. No problems. Although, I have made similar mistakes, and just made the phone call. Done.

FYI...A "short" payment is treated like NO payment. That is why it is called a "MINIMUM payment". And, if you are only making the minimum payment, you are already in financial trouble.

Address that issue next.
Good luck.


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Submitted: 10/19/2008 10:57:13 PM
Modified: 10/20/2008 11:01:41 AM Jim
Anaheim, California
U.S.A.

You Haven't Thought This Through Very Well
Expect the collection company to have you come up with $12,000. See, the collection agency will generally tack on as much as a 20% fee when they buy your debt from BofA. The bank will get their money - don't worry about that because they will sell your $10,000 to the collection agency. I suspect you'll have much more to worry about than the bank will. By the time you're done with lawyers and the like, you'll wish you paid the bank.....

I would seriously reconsider what you're planning on doing, because you're setting yourself up for some serious problems you could have avoided. Best of luck.


>>>

When you see how this impacts your credit score.

Expect the collection company to have you come up with $12,000. See, the collection agency will generally tack on as much as a 20% fee when they buy your debt from BofA. The bank will get their money - don't worry about that because they will sell your $10,000 to the collection agency. I suspect you'll have much more to worry about than the bank will. By the time you're done with lawyers and the like, you'll wish you paid the bank.....

I would seriously reconsider what you're planning on doing, because you're setting yourself up for some serious problems you could have avoided. Best of luck.