Bank of America Doubling Credit Card Interest Rates Even on Good Credit!!
Countrywide Ceasing All Home Equity Lines of Credit!
In the past, consumers who did fall behind on their payments but kept their credit scores in good standing order did find their interest rates rising. However, now we are finding out that Bank of America is targeting some consumers who have not fallen behind on payments, but have good credit scores.
Analyst are saying that Bank of America is doing this to help improve their earnings going forward because of the poor performance in their fourth quarter earnings which was mainly the result of loan-loss in reserves for consumer credit, including rising card charge-offs and write downs in mortgage-related securities. To read further details on the MSN.COM article, click "here". This will surely cause more hardships for consumers as they are already tapped out as the result of higher consumer debt they are already carrying.
Ok, now have a sip of that coffee, and say "I am ok", three times. I have more news to share. On top of this, according to the LA TIMES.COM, Countrywide Financial is sending out 122,000 letters to customers informing them that they can no longer borrow off of their home equity lines of credit. To read further details on this article, click"here".
What is going on here? What are the banks telling us? Is this a trend starting? This surely seems that the middle to lower income class people are the ones that are getting targeted. Our voices need to be heard and they need to be heard loudly. When you go vote for the next President, you need to start thinking why our economy is in this mess; why weren't the banks more regulated; and who could be the best candidate to get us out of it? No matter who gets in, this is a problem that is not going to go away quickly and could ultimately be the straw that broke the camel's back. The consumer is what has held this economy up since the year 2000, not corporate profits. If the consumer is tapped out, what will keep us from going into a deep recession? We can only print so much money before we all have to pay the piper, no matter what income class you are in. Think about it!
Source: MSN.COM, LATIMES.COM
Published by Sea Shepherd
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22 Comments
Post a CommentBeware of the bait n switch. I have excellent credit, only use my B of A credit cards as CHARGE cards and pay the balances monthly. My June statement said a letter was sent in April and my interest rates would be increasing. Called the number on the bill and the "seemingly nice" rep handed me over to the credit division. I explained to him that my credit is excellent, I always pay on time, and was wondering if they can put the rate back to what it was at 9.99 percent. He said, sure. Let me get a little information, asked what my annual income is, and what field I work in, etc. Then he said, he would be able to change the rate back down to 9.99% on one of the cards, (the other is at 11.99%) and but that he would have to drop my CREDIT LIMIT from 19,700 to 5,000 and my other one from 10,000 to 5,000! (I am a little underemployed as of right now, but only by about 10,000 per year) and have ZERO to debt ratio! BEWARE B of A consumers! I am going to go with my WELLS FARGO and open a credit
Long Time...you said it perfectly...there will be a time when the credit card companies start charging annual fees and perhaps even charge you the moment you make a purchase...Little do they realize, not everyone depends on a credit card..like you..I have great credit...and I only use it to get rewards as it is paid off monthly..they are shooting themselves in the foot!
For 15 years I have had personal and business accounts, credit cards, LOC's, car loans with BofA. We've always paid off our loans and never missed a payment. They cut off our HELOC due to declining property values in 2008, which is understood. But I was shocked to receive the notices on our personal cards in January that our margins were being raised significantly. We just received the same notices on the business cards. If their intention was to get rid of me they succeeded. I've met with a new smaller bank & set up new accounts, credit cards and lines of credit. The new bank was thrilled to have us and bent over backward to accomodate our needs. The leaders of BofA haven't realized that the result of their use of mass credit models will create adverse selection...the customers with the freedom to move accounts will do so and BofA will be left with those customers who have no choice but to stay. Additionally, the higher interest rates will put many over the edge creating defaults tha
When interest rates were low in the 80's the maximum a credit card company could charge was about 16%. Now the rates are lower than ever and the cresit card companies are chrging over 30%. I have a Bank of America card with my credit score over 800, no late payments to ANY of my creditors, and Bank of America just changed my rate from 9.99 to 20.99 in 1 month, for no reason other then to make money. This should be illegal and unfair. I was "locked" into a low rate and the bank changed it for no reason. (They said read you account terms, we can change your rate or terms at anytime without notice, and we did.) What a poor way to do business. They make BAD DECISIONS and I have to pay for it? Congress just past credit card reform, but it doesn't take effect until next year, so the credit card companies MUST screw us all while they can until then. I hope they go out of business and that everyone with a Bank of America card that this happens to transfers the balance on their accounts.
I recieved in my PO Box yesterday 7 credit card applications (I have 1 card with zero balance)which I promptly eliminate all personal from their info and fill their envelopes with whatever lays around the counter at the Post Office. I am doing my part to help revenue for the US Post Office and trying to do my part to help the credit card employees opening the envelopes for job security. Seriously Banks are looking for revenue they have lost from the subprime disaster. They look at short term gain and forget the big picture of what they are creating. They are the problem because of their greed. I personally belong to my local credit union which I see the same folks working their from last year, not like Wells Fargo, US Bank, Bank of America, and Sterling Bank which employees come and go daliy. And yes the Credit Union does pay its share of taxes which Bank say they dont. Banks have created this hole and they need to solve it!!!!!
Great info!! This is a huge problem for all credit card holders, I have found alot of other banks & credit card companies are also raising their rates. It does'nt seem fair, especially w/ bank of america, because w/ my experiences they have horrible customer service and I see alot of other banks have alot more to offer their customers, this is one of the main reasons alot of people I know including myself is changing banks. Good Job
I heard about this and I think it is horrible. Thanks for the details.
Oh, boy, oh, boy... Why is it always a win-win situation for the banks?
Irene - Just came back to note that I heard it here from YOU first and now it is all over the news. Good job of reporting!
Excellent reporting. I have to check my credit card statement. We keep low balances so I'll check it and pay it off and then let them know what they can do with their business.....maybe. It gets complicated when you have credit cards that go back a long way. Fico scores,etc. Have to double check all that.