B of A got slapped in the news
Ξ February 7th, 2008 | → | ∇ Observations |
It seems that I’m not the only one that BofA increased the rate on. I saw an article here that says that BofA is raising people’s rates all over the country. It seems that they may have changed their standards internally, but they are remaining quiet about the whole thing. A common theme seems to be that people who have a balance higher than a certain percentage of their limit are getting enormous rate increases, even when their credit score remains unchanged and they pay all of their bills on time.
I don’t see how this is going to help their bottom line in the long run. They certainly prompted me to pay them off faster, and all of their income from me comes from the interest that I pay. By raising the interest rate to usurious levels, they end up with nothing.
Unless of course they know something that nobody else knows. Are they trying to ditch what they perceive as their worst customers in order to make some sort of play in the near future as the Fed keeps dropping the rate?
Somehow I doubt it.
on February 10th, 2008 at 5:57 pm
This happened to my husband — they raised his rate from 7.99% to 15.99% without explanation. We pulled his credit report to see if something had happened, but there was no explanation for it. We transferred part of the balance to a new card before calling them and they did lower the rate back to it’s original APR.
The cust service rep gave him the explanation that people were using lower-interest credit cards as a permanent loan, and they wanted to buck this trend by identifying people who “weren’t paying the balance down fast enough” with the economy heading into a recession. Sad, but relieved to know it wasn’t just us — we’re not going to be doing business with them again if we can avoid it… though we did get the same BT offer after paying it off like you did. Aye.
on February 11th, 2008 at 4:38 pm
How do I send you an email?
After reading your post on BofA - I was afraid to open my current CC bills. One went down 2 pts and one went up .0653% of a point. (?)
Thanks,
FW