Is Anyone Else Getting Screwed by Bank of America

[Jayscott]

I recently got married, and my wife has a Bank of America Visa. There is about $8000 worth of debt on the card. They raised the interest rates from 10.99 to 26.99 out of nowhere. And how they did it is absolutly laughable. First they cut her available line of credit by $1000. That caused her credit score to go down, then they raised the interest. IT WAS A PROBLEM THAT THEY CREATED! She did nothing to cause her score to go down. No missed payments, NOTHING. THEY DID EVERYTHING. And they have been doing this to people across the nation. Is there anything we can do?

I recently got laid off and finding work has been difficult, if not impossible in this economic enviorment. So we have very little money as unemployment copensation only goes so far. We have not missed a single payment, but money is running out. One suggestion has been to just pay off the balance, we have nothing to pay the balance off with.

The payment is now doubled. It seems to me that the banks should be trying to help the situation with this economic crisis that we are in. Not make it worse! What was the bail out package that the financial industry got? Because it seems to me that that $700 billion they got went straight to the pockets of the already mega wealthy bank owners, and shareholders. And even though they got "bailed out" from their horrific business practices, they are still not passing any help on to you and me!

One more thing, the fed lowered the interest rates to the lowest they have been in a very long time, to spur economic growth by giving more money to the banks to loan. Why are the banks not loaning money then? Why is credit so hard to come by? They have been bailed out and it cost so little for them to loan. The dollar is getting destoyed and these banks are srewing people! It seems there is more going on behind the scene.

[maat55]

Thats why Dave Ramsey calls them snakes. I pay in full and hope they find no way to bite me.

[GREENBACK]

I have a boa card but don't use it much. I believe my rate is the same. I have no balance so I only get balance transfer offers from them. I'd call them and ask to have your rates lowered (sometimes works). I know with cc companies it pays to read the fine print. I'll bet in your boa agreement it says "rates and conditions are subject to change without prior notification" or words to that effect.

[Superhuge]

BoA did the exact same thing to me a few years ago. Here's the sequence of events:

1) Increase Credit Limit (unsolicited)
2) Mailed me Balance Transfer offer (unsolicited)
3) I transfer a balance, putting me within $1k of my new credit limit
4) BoA ratejacks me from 8.9% to 19.9% (rate was even higher than the balance I transferred!)
5) I give BoA a swift boot to the curb.

I messed up with them by refusing to pay them altogether out of principle. I was in college and although I did care about credit, I felt that stiffing them would somehow vindicate my situation. To do this day I still owe them on a judgment they got against me.

My only advice is I believe you can cancel within 30 days of their ratejack and still be able to pay off your balance at the old rate, which is what I should have done. You may need to read your disclosures though.

[disneysteve]

BoA did the exact same thing to me a few years ago. Here's the sequence of events:

1) Increase Credit Limit (unsolicited)
2) Mailed me Balance Transfer offer (unsolicited)
3) I transfer a balance, putting me within $1k of my new credit limit
4) BoA ratejacks me from 8.9% to 19.9% (rate was even higher than the balance I transferred!)
5) I give BoA a swift boot to the curb.

Step 3 is where you went wrong. If you charged more than 30-50% of your credit limit, you caused your FICO score to drop. That made you a higher credit risk and gave the bank a reason to hike your rate.

Credit cards are a very useful financial tool, but like all tools, you need to know how to use them safely.

[SacredFaerie]

BoA screws people over left and right. Military families all over hate them with a passion because they like to be shifty concerning POAs.

Pay them off and run away.

[poundwise]

Anyone with a BOA savings account (Keep the Change anyone?) is getting screwed; whether they know it or not.

[Superhuge]

Step 3 is where you went wrong. If you charged more than 30-50% of your credit limit, you caused your FICO score to drop. That made you a higher credit risk and gave the bank a reason to hike your rate.

Credit cards are a very useful financial tool, but like all tools, you need to know how to use them safely.

I'm not sure I agree with you. A balance transfer doesn't effect overall utilization. It may make me a riskier proposition in the BoA model, but not the FICO model.

The logic you're describing would suggest to spread a balance thin between as many accounts as possible (I know there's a "too many accounts component" to the FICO model as well). Lets say I went to buy a $5k TV and I have 10 credit cards. As long as I won't trigger the 30% of any one given card, I should spread $500 to each card to not change my credit score. I'm sure retail would put their hands up over all of the transaction costs from people splitting payments into small amounts between accounts.

[boosami]

They raised the interest rates from 10.99 to 26.99 out of nowhere.

Due to the nature of most agreements you "sign" with a credit card company, they don't have to have a reason to raise your APR. Unfortunately, there's not a lot you can do.

Try the following:
1. Find out if you can opt out of the increase, and do it. This will prohibit future charging on that card, though.
2. Call and plead with them to lower you APR. Ask for a manager.
3. White a letter threatening account cancellation if they don't lower your APR.
4. Move the balance elsewhere!

[boosami]

As long as I won't trigger the 30% of any one given card...

I'm pretty sure that's what Steve was referring to--the card utilization, not overall credit utilization.

[kork13]

ugh... BoA... My car loan is with them. Without getting too deep into it, I find their management of my loan unreliable at best.... Hard to work with, for one. More importantly, I don't have the paperwork to prove it, but I'm fairly certain that they've "misplaced" $1500 worth of payments that I've made, but aren't appearing in their records. Let's just say that I'm on track to have it paid off NLT April (hoping to do it in March), then I'm done with them forever. Never going to even consider using them again for anything, because I've lost all trust in their services.

[spicy14lingo]

I have a BOA card and (so far) haven't had any problems with them. However, my mother had the interest rate randomly increased with them about a year ago. I am working to just pay off my BOA card now and be done with them. It's really terrible the way that they do business.

[Ralph]

I have been ok but I am getting ready to transfer and I don't want to get screwed!

So far they have been good to me over many years, but I worry that if I make big moves I may get screwed, especially if I get way too much money with them, near the top of my credit limit with them.

In general, I tend to use most of the credit line on a card with a 0% offer. My FICO score varies within 708 to 768 for 2008. It seems to get low right after Christmas when I am in trouble, and rise throughout the year as I get it paid down, then dive near 700 again.

I'll ask in a new thread if I can get a FICO score benefit from making a small amount over the minimum payment, since making just the minimum payment apparently hurts my FICO score. But would it have to be a substantial amount, like double? Or would $1 over minimum do it? Probably not, seems too easy (not to mention sleazy!).

[arthurb999]

I've used them for many years and have had great expeirences. They have the best online banking ive seen and good credit card deals for people with good credit.

I have my auto loans with them as well and I set up auto withdrawl... very easy. Not sure why the above poster is having trouble with their auto loan...

[Multima$tery]

BOA screws people because they can. They're large and very corporate. And usually when businesses get to big for their britches they start throwing their weight around because they don't really need you. They know whatever they do, there will always be someone waiting in line to bank with them.

I have been a BOA customer for years as well. The only reason that I have stayed this long with them is because I at least have some history with them and they are basically nationwide with lots of convenient locations and ATMs. Also the name Bank of America in itself holds financial clout.

I don't agree with all their fees at all. I am seriously considering leaving BOA alone for good!