Bank Of America Raised credit card APR for absolutely no reason - I've had the card for 7 yrs with the same rate until now! Wilmington Deleware

The most recent rate increase for BofA customers was specifically targeted against those customers with a rate under 10% who revolve their balances. The customers have a low rate of return and present some measure of risk because the bank is on the hook for those funds if the customer defaults. So by raising the rate above 10% (I believe I read the average is 13.99) they are able to make an increased profit on these customers to cover the increased risk of default.

I know it's hard to understand but the bank wants you to do one of two things: Make a lot of transactions and pay off every month (thereby earning the bank money through the bank interchange fees) or carry a high revolving balance and pay interest on that balance every month. Typically, transactors get lower rates than revolvers. Essentially the group that just got penalized was revolvers who were fortunate enough to get the rates enjoyed by transactors.

I don't need to go back to school, because I have my favorite books that I take into the mountains, and I memorize, and practice the techniques of the TRUE 'masters'.

Here are a few that may help you:

Do not fail
To learn from
The pure voice of an
Ever-flowing mountain stream
Splashing over the rocks.

- Morihei Ueshiba


The delight of mountains, rivers, grasses, trees, beasts, fish, and insects is an expression of the Art of Peace.

- Morihei Ueshiba



Day after day
Train your heart out,
Refining your technique:
Use the One to strike the Many!
That is the discipline of a warior.

- Morihei Ueshiba



Even the most powerful human being has a limited sphere of strength. Draw him outside of that sphere and into your own, and his strength will dissipate.

- Morihei Ueshiba



When you bow deeply to the universe, it bows back; when you call out the name of God, it echoes inside you.

- Morihei Ueshiba

Karl, you tool, I'm not rich and don't have a "black" credit card. I have a normal VISA platinum serviced by FIA.

My interest rate follows the prime rate and has actually gone done over the last 8 months as the prime rate has dropped.

I know that "they" are not raising interest rates for "everyone across the board" and if someone has their rate increased they should probably demand a written explanation as to why. I would think that raising the rate would be considered an "adverse action" according to the FCRA and the lender would be required to provide the debtor a written statement as to why as well as identify the CRA that provided the information that spurred the increased interest rate.

PS. Since your sister is so rich, maybe you could get her to front some tuition money so you can return to school. Maybe that would spare us from your silly "see d**k run" (ahem) poetry and other irrelevant rants.

Karl, you tool, I'm not rich and don't have a "black" credit card. I have a normal VISA platinum serviced by FIA.

My interest rate follows the prime rate and has actually gone done over the last 8 months as the prime rate has dropped.

I know that "they" are not raising interest rates for "everyone across the board" and if someone has their rate increased they should probably demand a written explanation as to why. I would think that raising the rate would be considered an "adverse action" according to the FCRA and the lender would be required to provide the debtor a written statement as to why as well as identify the CRA that provided the information that spurred the increased interest rate.

PS. Since your sister is so rich, maybe you could get her to front some tuition money so you can return to school. Maybe that would spare us from your silly "see d**k run" (ahem) poetry and other irrelevant rants.

Karl, you tool, I'm not rich and don't have a "black" credit card. I have a normal VISA platinum serviced by FIA.

My interest rate follows the prime rate and has actually gone done over the last 8 months as the prime rate has dropped.

I know that "they" are not raising interest rates for "everyone across the board" and if someone has their rate increased they should probably demand a written explanation as to why. I would think that raising the rate would be considered an "adverse action" according to the FCRA and the lender would be required to provide the debtor a written statement as to why as well as identify the CRA that provided the information that spurred the increased interest rate.

PS. Since your sister is so rich, maybe you could get her to front some tuition money so you can return to school. Maybe that would spare us from your silly "see d**k run" (ahem) poetry and other irrelevant rants.

Karl, you tool, I'm not rich and don't have a "black" credit card. I have a normal VISA platinum serviced by FIA.

My interest rate follows the prime rate and has actually gone done over the last 8 months as the prime rate has dropped.

I know that "they" are not raising interest rates for "everyone across the board" and if someone has their rate increased they should probably demand a written explanation as to why. I would think that raising the rate would be considered an "adverse action" according to the FCRA and the lender would be required to provide the debtor a written statement as to why as well as identify the CRA that provided the information that spurred the increased interest rate.

PS. Since your sister is so rich, maybe you could get her to front some tuition money so you can return to school. Maybe that would spare us from your silly "see d**k run" (ahem) poetry and other irrelevant rants.

to everybody!

My brother in-law & sister won't be effected because they have a 'Black American Express Card', just as many CEO's, & Hollywood Actors, & Actresses do! These people WON'T be effected. You see, if you spend about $150,000.00 a year on your American Express Card, you might be lucky enough to receive a 'Black American Express Card'.

You can't apply for one, it's given to the super-wealthy who are worth MANY MILLIONS of dollars. My sister used it to buy 3 outfits in Paris a few years ago. Those 3 outfits cost $90,000.00 & the purchase was put on their 'Black American Express Card'.

She told me that they're, quote- 'Treated like royalty' when they check into hotel rooms all over the world. So, you are right!!! Not everyone has been, or will be, effected by these rate increases!!!

I'll bet that the CEO's of Bank of America, Citigroup, Goldman Sachs, Morgan Stanley, Wells Fargo, BlackRock Inc.........& many other corporations all have 'Black American Express Cards'.

I'll bet that Bernard Madoff probably had one too! And I'll bet that Joe Nacchio had one! However, I don't think they're very useful in jail.

Have a nice day!

More poems coming soon!

Is this interest rate increase and limit lowering really happening to everyone? I don't think so.

My personal VISA is handled by FIA Card Services (BoA) and was initially opened through M & T Bank back in 1995. My interest rate on the card fluctuates with the Federal prime rate.

In the past 8 months, my interest rate has been reduced by 1.75 points. This was done automatically-I did not request a rate reduction.

I don't believe for a minute this rate increase and limit lowering is happening "across the board" with everyone. In fact, I know from my monthly statesments that it IS NOT.

Do I believe that I am the ONLY VISA card holder managed by FIA Card Services who has seen the interest rate of the card go down with the Federal prime rate?
No. Of course not. There is nothing special or unique about me or my personal finances and I'm certainly not "rich."

So, the question is ""WHY are SOME credit card holders having their interest rate increased and limit lowered?""

I don't know the reason but I have suspicions that it is because of a change in income, spending habits, unpaid cc balance, credit score, credit-to-income ration, etc. and for some reason the CC companies may not be responding to inquiries from consumers in a completely forth right manner. Some CC companies are switching to an "in house" formula (rather than FICO, BEACON, VANTAGE, etc) to make these determinations, and as such, they are not required by law to disclose the EXACT criteria they use for thier in-house "risk assessment."

It sucks, I admit that. But the blanket "they're doing it to everyone across the board" response some folks who post here doesn't fly either! They clearly ARE NOT doing it to everyone across the board.

Is this interest rate increase and limit lowering really happening to everyone? I don't think so.

My personal VISA is handled by FIA Card Services (BoA) and was initially opened through M & T Bank back in 1995. My interest rate on the card fluctuates with the Federal prime rate.

In the past 8 months, my interest rate has been reduced by 1.75 points. This was done automatically-I did not request a rate reduction.

I don't believe for a minute this rate increase and limit lowering is happening "across the board" with everyone. In fact, I know from my monthly statesments that it IS NOT.

Do I believe that I am the ONLY VISA card holder managed by FIA Card Services who has seen the interest rate of the card go down with the Federal prime rate?
No. Of course not. There is nothing special or unique about me or my personal finances and I'm certainly not "rich."

So, the question is ""WHY are SOME credit card holders having their interest rate increased and limit lowered?""

I don't know the reason but I have suspicions that it is because of a change in income, spending habits, unpaid cc balance, credit score, credit-to-income ration, etc. and for some reason the CC companies may not be responding to inquiries from consumers in a completely forth right manner. Some CC companies are switching to an "in house" formula (rather than FICO, BEACON, VANTAGE, etc) to make these determinations, and as such, they are not required by law to disclose the EXACT criteria they use for thier in-house "risk assessment."

It sucks, I admit that. But the blanket "they're doing it to everyone across the board" response some folks who post here doesn't fly either! They clearly ARE NOT doing it to everyone across the board.

B of A are liars and are basically setting people up to fail. Something has to be done, these people are taking advantage of hardworking loyal customers that have
been nothing but responsible and payed their bills. how can u go from 13.99% to
27.99% just because they say they can???? I wonder what the default APR is for
people who don't pay their credit card on time? Back in the day 27.99" was for
people that either defaulted or were always late. Something has got to give !!!!!

that MILLIONS upon MILLIONS upon MILLIONS of Americans aren't paying additional money eacch month towards their mortgages, wouldn't you agree?

I believe there's a MORTGAGE CRISIS going on in the USA, isn't there?

There are also over 650,000 JOBS being lost each month, since late 2008, & into the first 3 months of 2009, right?

Perhaps YOU should run for President in 2012, & FIX AMERICA!!!!

Please read 'FIX AMERICA POEM' which was posted right here at Ripoff Report last year!!

'Google' this- RIP OFF REPORT TOYOTA MOTOR CORPORATION USA MANIPULATION, and 'FIX AMERICA POEM' appears as an Update to Charlene's Ripoff Report.

POWER TO THE PEOPLE

Coming soon, where 'CUOMO POEM', HARVARD PROFESSOR POEM', & 'DEEPAK POEM' are posted will be- MADONNA POEM

Thank you.

I'm starting to 'get into the groove', huh?

I was going to mention the opt out option where you can pay off your existing debt under the old interest rates provided you do not add any new debt but I see you are already aware of it. I get the fealing that when you called BofA and asked if they would raise your rate they thought you were asking if you would be forced to pay a higher rate on the debt you were already carrying and obvioulsy the answer is just as they told you, no one is going to force you to pay a higher interest on the debt you accumulated under the old agreement.

Banks have been accused (rightfully so I think) of aggresive lending policies. Of providing more credit than a consumer can possibly pay off and leading us into a financial disaster. A bank plugs your credit info into a formula that tells them how much credit they should make available to you and how low of an interest rate they can offer you. All banks are now re-working this formula in an atempt to "fix" the problem of lending more money than they should and at a rate that makes them insolvent and unstable.

Of course CC companies use interest rate increases and lowered limits as penalties for people who exceed their credit limit or miss payments but do not confuse that with what has happend to you and me.

We did nothing wrong and we are not being personally penalized. The very same credit info that we have had and maintained is being entered into a "new" formula and the reduced limits and increased interest rates are the results of the new formula working on our old data.

I can't say I like it but I like the mess we are in even less so I will deal with a higher interest rate and lower credit limit.

I would suggest you pay off the outstanding balance on the card, contact BofA's retention department and ask them to switch you back to the lower rate. It worked for me (with Chase not BofA but it was the exact situation you are in with BofA).

Laurie - thanks for being the voice of reason! Too often people here on ROR blame the banks for all kinds of things that are just plain business decisions.

To the OP - sure it sucks. But there's nothing you can do about it. It's happening to all of us and we just have to go with the flow. Unless you're like Karl (of course) who wants to rant and rave in his true paranoid fashion that there are all kinds of enemies out there waiting to take advantage of us. The truth is, we're our own worst enemy when we buy on credit, spend more than we make, don't keep an accurate checkbook balance (on paper!) and make bad purchasing decisions.

I once found my grandmother's financial ledger from 1928-1930. She had every penny accounted for and nothing was purchased on credit. Sure, they didn't live in a giant house with all the latest modern appliances, but they didn't sweat every time they opened the mail to see how much BOA raised their interest rate! Now, a lot of us are just making it from one payday to the next.

I empathize, I really do.

Yes you can spend hundreds of thousands of dollars on interest payments - IF you make the only the minimum payment over the 30 year period.

However when you pay extra towards principal each month and pay it down - you pay far less interest.

I had a 30 year mortgage that I paid off in 9 years. Saved me thousands in interest.
I also was pre-approved for my mortgage before I started looking so I knew exactly how much I could afford and I still found a nice home with acreage while staying 20K below my pre-approval total.

Same thing with credit cards - you cannot pay off a debt until you start making larger payments.

Basically it is up to the individual to make the final decision on which is more important - being in debt or not. I chose NOT.

I never said I agreed with the rate increase or that it was correct

As a matter of fact I clearly stated that the banks are making their GOOD CUSTOMERS pay for their bad business decisions.

So many people use the term NO VALID REASON, because they are assuming the bank did it BECAUSE THEY THE CUSTOMER DID SOMETHING WRONG.

When it has been all over the news about the across the board rate increases by all credit card companies and so many people act like they have no idea what is going on.

That is my objection to the term NO VALID REASON in these reports.

The banks will come up with any VALID reason they can to justify the increases.
As stated in the cardholder agreement - they can change the terms anytime they want.

'Google' this- DR MANDELSTAMM OF KIEFF, and click on the site that says- 'Page 88', and read the passage entitled- 'The Talmud And The Ghettoes'

Read it 3 or 4 times- very slowly!

You see, there are a group of people who have wanted CONTROL over the masses for thousands of years, and the way that the masses are now being controlled, or better- 'corralled', is by putting them deep into DEBT!

Once a person falls for their scheme, it's almost impossible to get out! Take for example, a house payment! Mortgages in the USA are for 30 years, correct? And if you calculate the interest paid on a 30 year mortgage at a fixed rate of 5.7% for a $260,000 mortgage, you will see that the INTEREST alone equates to a little over $280,000.00

And guess what? That DOESN'T include PROPERTY TAXES!!!

The payment on a 30 year mortgage at a fixed rate of 5.7% for $260,000 is $1,509 per month. That's a little over $540,000 in total payments over 360 months, and it DOESN'T include PROPERTY TAXES!

It DOESN'T include any upkeep, or maintenance on the home either!!!

By 'corralling' the masses, and keeping them in DEBT, the ones who want CONTROL are able to attain their GOAL!!! However, they got a little TOO GREEDY, and their plan has BACKFIRED!!!

Guess what? They also control most of our government, and they DO CONTROL the BANKING SYSTEM in America, & in Europe! They also control much of Wall Street.

Simply take a look at what IS HAPPENING, & you can figure this out. Isn't it interesting that the American TAXPAYER is bailing-out these same BANKS with HUNDREDS of BILLIONS of dollars in TAXPAYER'S money?!!

The 'McGlaughlin Group' reported two Fridays ago that the American taxpayer has been put on the hook for $5.32 TRILLION since March of 2008! In only ONE YEAR it's cost $5.32 TRILLION in total TAXPAYER OUTLAY!!!

WHY?

Answer: FRAUD, DEEP CORRUPTION, GREED, DECEPTION, MANIPULATION, LIES, & the CONSTANT PURSUIT TO FINANCIALLY INJURE THE INNOCENT people of America, & the innocent people of Europe, & others!!!

WELCOME TO AMERICA- IN FRAUD WE TRUST!

P.S. The CEO of Goldman Sachs made $42.9 MILLION in fiscal 2008. That comes out to $825,000.00 per week! Or, $165,000.00 PER DAY!! Or $20,625 PER HOUR!!! Guess what? Goldman Sachs received $10 BILLION in TAXPAYER'S money in the Fall of 2008!!!

'Google' this for proof- GOLDMAN CEOS PAY PACKAGE DECLINED WITHOUT BONUS, and read it. This is just ONE case! There are other banks that received 'TARP' money, & AIG received about $180 BILLION in 'TARP' money. These banks are all 'linked' to AIG in one way or another!!

Americans are getting the 'shaft', in my opinion.

But that's just BUSINESS IN AMERICA!

QUOTE: 'Who controls money controls the world.' - Henry Kissinger, as seen in the documentary entitled- AMERICA: FREEDOM TO FASCISM (you can 'Google' it & watch it on the web!)

Good luck to you!

By the way, you can believe whatever you want! This IS America, right?????

'Laurie'.
The sour economy is no excuse for a company to reneg on an agreement, especially one sucking on the TARP teat. It is nowhere near a VALID reason, it is theft, pure and simple. Using your same logic, since the economy is bad, I should be able to get everything for less money because I have less of it right now.

Looks like another member of the POSITIVE PERCEPTION KEYBOARD COMMANDOES to me! ...you're outed, move along.


Dakine,
Welcome to the I GOT SCREWED BY BANK OF AMERICA club. Please stand by as numerous self-appointed experts tell you how this is now your fault, you had it coming, the bank is right to take whatever it feels is theirs, and to please stop whining.

'Laurie'.
The sour economy is no excuse for a company to reneg on an agreement, especially one sucking on the TARP teat. It is nowhere near a VALID reason, it is theft, pure and simple. Using your same logic, since the economy is bad, I should be able to get everything for less money because I have less of it right now.

Looks like another member of the POSITIVE PERCEPTION KEYBOARD COMMANDOES to me! ...you're outed, move along.


Dakine,
Welcome to the I GOT SCREWED BY BANK OF AMERICA club. Please stand by as numerous self-appointed experts tell you how this is now your fault, you had it coming, the bank is right to take whatever it feels is theirs, and to please stop whining.

'Laurie'.
The sour economy is no excuse for a company to reneg on an agreement, especially one sucking on the TARP teat. It is nowhere near a VALID reason, it is theft, pure and simple. Using your same logic, since the economy is bad, I should be able to get everything for less money because I have less of it right now.

Looks like another member of the POSITIVE PERCEPTION KEYBOARD COMMANDOES to me! ...you're outed, move along.


Dakine,
Welcome to the I GOT SCREWED BY BANK OF AMERICA club. Please stand by as numerous self-appointed experts tell you how this is now your fault, you had it coming, the bank is right to take whatever it feels is theirs, and to please stop whining.

'Laurie'.
The sour economy is no excuse for a company to reneg on an agreement, especially one sucking on the TARP teat. It is nowhere near a VALID reason, it is theft, pure and simple. Using your same logic, since the economy is bad, I should be able to get everything for less money because I have less of it right now.

Looks like another member of the POSITIVE PERCEPTION KEYBOARD COMMANDOES to me! ...you're outed, move along.


Dakine,
Welcome to the I GOT SCREWED BY BANK OF AMERICA club. Please stand by as numerous self-appointed experts tell you how this is now your fault, you had it coming, the bank is right to take whatever it feels is theirs, and to please stop whining.

I think there are probably better choices for your loyalty.

Please read your credit card agreement someday. The fact that you believe that your rate would never change leads me to believe you've never read BofA's or anyone else's card agreement. The fact that you would claim loyalty is rather laughable. Don't get mad, just read the agreement and you'll see what I mean.

I'll give you a preview : The bank determines what interest rate you'll pay. The bank determines what the miminum payment will be. The bank can change any part of the agreement at any time with 15 days notice. You have little to no say in any of these matters. Does that sound like something that deserves your loyalty?

BTW - When you say, "I am never using a card from you again", does that mean you're under the impression that other credit cards deserve your loyalty? Guess again. They're all the same. The only way to avoid problems like this it to refuse to borrow money under a bank's credit card terms. If you need money, get a real fixed rate loan. At least you'll know what the repayment terms will be from one month to the next.

They have a valid reason - ITS THE ECONOMY

If you were paying attention to the all the news about the financial crisis we are all in - ALL THE CREDIT CARD COMPANIES ARE DOING IT ACROSS THE BOARD.

Basically making their GOOD CUSTOMERS pay for their BAD BUSINESS DECISIONS.


SO YES THEY HAVE A VALID REASON AND IT HAS NOTHING TO DO WITH YOU!