• Report: #521116
Complaint Review:

Bank of America

  • Submitted: Sat, November 07, 2009
  • Updated: Wed, November 18, 2009

  • Reported By: Chris — San Jose California U.S.A.
Bank of America
PO Box 15128, Wilmington, Delaware 19850-5128 Wilmington, Delaware United States of America

Bank of America Formerly MBNA division Credit Card division has incorrectly calculated the closing date to misapply payments, and then uses it to authorize default interest rates. Wilmington, Delaware

*Author of original report: The end

*Consumer Suggestion: Every 30 days?

*Consumer Comment: Why so complicated?

*Author of original report: On time payments

*Consumer Comment: A little confusing..

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My argument with Bank of America (formerly MBNA) is over their Quantum Platinum Mastercard and the use of variable "Closing Dates" and billing period days.  For those that do not know what I am talking about, take two statements from consecutive months.  Take the later statement and you will find a "closing date".  Subtract from that date the number of "Billing Period Days" and you will arrive at the prior month's closing date.  What that tells you is the period of time being covered by the statement in hand.  Why they set these dates to be covered only subsequently and not tell you what the future period will be is odd and a bit misleading, but that is not my argument.  At any rate I have recalculated all of my statements back to June of 2008 and this has worked save one.

Rather, my argument is that on my October, 2009 statement I have a closing date of 10/5/2009.  On my November, 2009 statement I have a closing date of November 2 with 30 billing period days on the statement.  Take a moment and subtract 30 days from November 2nd.  You come up with 10/3/2009.  Please note, that in over a year of statements I have gone through this is the only time this mistake has been made by BoA.  My past 4 payments (their posting date) and applicable due dates are as follows:

8/07 - $500   Due 8/24

9/9 - $500   Due 9/30

10/5 - $500   Due 11/1 (A Sunday)

11/2 - $400   Due 12/1

The problem is with the payment made 10/5.  It was posted with my 9/9 payment even though it was past the due date and past what the correct 10/3 date should have been.  I received a letter 11/6 dated 11/2 (not bad for a company that advises 5-7 business days from the other side of the country) stating that my rate would be moving to 26.99% from 9.99%. 

Normally I'm a "deadbeat" (pay of balance each month) with a flawless history of payment since 1/97, but foolishly thought they would stick to the fixed rate when I took a $25K cash advance from them to make investments early this year which was at 0% interest until....October, 2009!  (Yes I made it a specific conversation point in taking the money, no BoA will not release the tape of the 12-12-08 conversation even though it is referenced right in their statement)

At any rate, they now want loan shark interest on my remaining debt (I've made no other purchases) of $17,402.22.  I'm very interested to see how they come up with finance charges on this bill going forward.  Also, why can they seemingly with no rhyme or reason alternate the Billing Period Days between 29-34?

Finally, they overcharged interest (which they weren't supposed to...0% remember) on my June bill, which they credited in July....but then recharged.  Also, between my July and August statements, the history doesn't "rollforward", magically .02 in their favor appeared.  Easy to spot when the interest rate is 0%, but it will be much harder when they start charging a rate. 

Just my note to beware.  The BoA execs/crooks are nibbling on the accountants' ears to take money where they can't earn more.  I'd love for it to go further, but I doubt it will.

This report was posted on Ripoff Report on 11/07/2009 11:29 PM and is a permanent record located here: http://www.ripoffreport.com/reports/bank-of-america/wilmington-delaware-19850-5128/bank-of-america-formerly-mbna-division-credit-card-division-has-incorrectly-calculated-the-521116. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 Author of original report

The end

AUTHOR: Chris - (U.S.A.)

13 years of paying the same way and this thing springs up for the first time now?  There's no way, especially when the oldest time frame was 14 days.  The statements all tie except this month.  Yeah right.  No follow through on agreements...perfect.  Statements can't be mathmatically recreated.  Why should they. 

A couple hundred thousand dollars spent and repaid on this card and I can't even get past some front line joker making $12 an hour.  Forget it then.  Pulled out $25K from the bank side today to establish elsewhere.  Had to laugh as I saw someone had recently tagged the signs and buildings in this very not gang infested neighborhood.  Apparently I'm not alone.  All my accounts will be closed as soon as activity wraps up.  They won't care, but I will.

Of course, some of us little individuals work at big companies. 

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#2 Consumer Suggestion

Every 30 days?

AUTHOR: JandJMommie - (United States of America)

I believe billing cycles are every 30 days, not every month ( which would explain the difference in date some months).Some months it will be sooner due to the fact the previous month had 31 days. Paying at least 15 days in advance will solve the problem all together. Hope this helps!
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#3 Consumer Comment

Why so complicated?

AUTHOR: Amftgb - (U.S.A.)

Why can't you just make your payments after your account bills and before the due date like everyone else? You are making things sound like some conspiracy. The terms of agreement I received with my credit card state the number of days in the billing cycle may change depending on the month and so forth. You sound like you are just mad because you had a little flub with making your payments and need someone to blame.
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#4 Author of original report

On time payments

AUTHOR: Chris - (U.S.A.)

Hello Ronny,

You are correct, I make the payments timely and try to pay very early because I know too well what happens if you get in their cross hairs.  The quintessential problem is that my October payment was applied with my September payment on the September billing cycle and my payment made November 2nd was applied to my November statement. 

When I look closer at the statements, they do not bear out this change.  In fact they conflict with each other.  What the credit card has essentially done is given the customer, without clarity, two time periods the cardholder must juggle.  The cardholder must make their payment before the due date, but not pay before the end of their billing cycle period. 

Perhaps this is legal.  But this other time period is never stated until after the time period has ended.  Additionally, what they have done is augment the variance between when a cycle ends and a payment is due.

But to simplify it, (it is complex because they make it that way) I made two payments.  One on 10/5 and one on 11/2.  I am being penalized for not making a payment in the 30 day cycle time (per statement) in between those two dates.  Pick any dates you would like, you can't fit a 30 day period inside a 28 day span.  One payment or the other would had to have posted during that period.

Unfortunately, I was unable to get a customer service representative to comprehend this today.  She got quite nasty actually that I didn't understand.  At least I got the $39 fee waived, but the real bogey of 26.99% interest is very much alive and well yet. 

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#5 Consumer Comment

A little confusing..

AUTHOR: Ronny g - (USA)

However..if the bank raised any interest rates without notifying you first..even if by "default"..you may have grounds against the bank.

Court Faults Default Rate Practice  <-- this link is to the details of a case against Chase Bank for Truth in Lending violations..and the customer prevailed.

As far as the inconsistency with the seemingly arbitrary number of days per billing cycle..perhaps someone can clarify that..I have no idea how they get away with that one. You would think it works as such to = 365 days or 365 divided by 12. However different months have different amounts of days so maybe that is how they determine? I think 30 days is the norm. As long as the payment is not late it shouldn't matter..it looks to me like you were making payments early so where were you late?

This is an example of billing cycles for a year with BofA..I guess you would have to ask them how they come up with this.

Start Date End Date CycleDays Due Date
12/4/2008 1/7/2009 34 1/6/2009
1/7/2009 2/5/2009 29 2/4/2009
2/5/2009 3/5/2009 28 3/4/2009
3/5/2009 4/4/2009 30 4/3/2009
4/4/2009 5/6/2009 32 5/5/2009
5/6/2009 6/4/2009 29 6/3/2009
6/4/2009 7/6/2009 32 7/5/2009
7/6/2009 8/5/2009 30 8/4/2009
8/5/2009 9/2/2009 28 9/1/2009
9/2/2009 10/4/2009 32 10/3/2009
10/4/2009 11/3/2009 30 11/2/2009
11/3/2009 12/4/2009 31 12/3/2009
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