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Established Contributor
dizzier
Posts: 733
Registered: ‎10-23-2007
0

BOA is changing my varibale rate formula to screw me out of rate decreases...

[ Edited ]
So BOA is changing my Variable APR formula to a new formula which will, most likely, end in a higher interest rate.

So currently, my APR is based on the amount of the US prime rate in the Wall Street Journal on the last publication date of the month

After Dec. 19, 2007 my rate will be based on the highest US prime rate at any time within "the immediately preceding three months, including the month in which the index was determined"

Is this happening to anyone else?
:smileysad:

ETA: changed the title to more accurately reflect the height of my pissed-off-ness!

Message Edited by dizzier on 12-11-2007 09:45 PM
____________________
FICOs: (as of 12-10-08): EX 759 | (as of 01-24-10): EQ 794 TU 756 EX ? | (as of 3-17-11): EQ 794 TU 790 EX ?

Until Chase lowers my ridiculously high APR they can kiss my patootie! Their card has been retired to the sockdrawer. :smileymad:
Valued Member
ksiss
Posts: 37
Registered: ‎09-15-2007
0

Re: BOA is about to raise my rates. Is this happening to anyone else?

Hmm.  I have a World Points card that's still in it's 0% intro APR, so it'll be interesting what they give me after that.  I just posted about how I got a decreased APR with my 3 month old USAA card without asking.  Wonder why BOA feels they need to jack everyones rates up while USAA can afford to cut them.  I guess BOA is on the wrong side of this credit crisis.
 
 
 
 ***Hugs USAA card***
TU: 766 EQ: 732 EX: 759 in April 08
Scores after securing a motorcycle loan:
TU: 705 EQ: 718 EX: 726 OUCH!!!!!
Established Contributor
dizzier
Posts: 733
Registered: ‎10-23-2007
0

Re: BOA is about to raise my rates. Is this happening to anyone else?

of course this means that i will not be able to take advantage of the lower fed rates.

this will change my effective prime rate from 7.25 to 8.25. BASTARDS!!!!

anyone else, or is this just me? I suggest all you BOA customers check to see if you've been sent a letter amending the terms of your cards.
____________________
FICOs: (as of 12-10-08): EX 759 | (as of 01-24-10): EQ 794 TU 756 EX ? | (as of 3-17-11): EQ 794 TU 790 EX ?

Until Chase lowers my ridiculously high APR they can kiss my patootie! Their card has been retired to the sockdrawer. :smileymad:
Moderator Emeritus
Brammy
Posts: 5,436
Registered: ‎03-10-2007
0

Re: BOA is changing my varibale rate formula to screw me out of rate decreases...

[ Edited ]
Hmmmm..... Looks like BofA is trying to pocket the difference in the anticipated Fed cuts. So the quarter point nad the expected additional cut at the Fed JAnuary meeting will not make it to your pocket til April of next year.  That is ONLY if the Fed doesn't reverse any cuts in the meantime.....
 
BofA sucks.
 
Used to be the highest rate in the rolling thirty day period.


Message Edited by Brammy on 12-12-2007 07:50 AM
Moderator Emeritus
Timothy
Posts: 9,252
Registered: ‎03-19-2007
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Re: BOA is changing my varibale rate formula to screw me out of rate decreases...

2007-09-18 7.75
2007-10-31 7.50
2007-12-11 7.25

Based on how I read you post- they are delaying the .5 and .25 reductions in your APR.

SO you will get a .25 increase now then a decrease in Feb and March/April

I guess it is an amazing what a .25 or .5 basis points means to a huge company like this-
Moderator Emeritus
Brammy
Posts: 5,436
Registered: ‎03-10-2007
0

Re: BOA is changing my varibale rate formula to screw me out of rate decreases...

[ Edited ]


Timothy wrote:
2007-09-18 7.75
2007-10-31 7.50
2007-12-11 7.25

Based on how I read you post- they are delaying the .5 and .25 reductions in your APR.

SO you will get a .25 increase now then a decrease in Feb and March/April

I guess it is an amazing what a .25 or .5 basis points means to a huge company like this-

Since they are going by the highest APR in the three month rolling cycle, the OP will get this oe onl if the fed doesn't reverse itself sometime withint the three month rolling period.
 
Not so much amazing taking into consideration how many billions of dollars in credit card debt this bank holds.  Makes a pretty penny they get to pinch when you add it all up.
 
Thought the ratecute was to stimulate the economy by increasing consumer confidence and spending.  Didn't know it was meant to fatten the bank's wallet.



Message Edited by Brammy on 12-12-2007 08:15 AM
Moderator Emeritus
Timothy
Posts: 9,252
Registered: ‎03-19-2007
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Re: BOA is changing my varibale rate formula to screw me out of rate decreases...

It is expected fro the FED to reduce another full point over the next 12 months-



Brammy wrote:








Timothy wrote:
2007-09-18 7.75
2007-10-31 7.50
2007-12-11 7.25

Based on how I read you post- they are delaying the .5 and .25 reductions in your APR.

SO you will get a .25 increase now then a decrease in Feb and March/April

I guess it is an amazing what a .25 or .5 basis points means to a huge company like this-




Since they are going by the highest APR in the three month rolling cycle, the OP will get this oe onl if the fed doesn't reverse itself sometime withint the three month rolling period.


Not so much amazing taking into consideration how many billions of dollars in credit card debt this bank holds. Makes a pretty penny they get to pinch when you add it all up.


Thought the ratecute was to stimulate the economy by increasing consumer confidence and spending. Didn't know it was meant to fatten the bank's wallet.




Message Edited by Brammy on 12-12-2007 08:15 AM


Member
TXturnaround
Posts: 7
Registered: ‎11-13-2007
0

Re: BOA is changing my varibale rate formula to screw me out of rate decreases...

I received the same letter for 2 accts that I have w/BOA and one of them is a closed acct.  I sent a letter rejecting the APR increase.  The address should be in the statement.  It's funny how they always send these "agreement changes" that go in effect always in January.  People are already trying to recover from holiday shopping in January & then turn around & you have a change to your credit card payments at the beginning of the year.  Timing is everything!! 
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Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: BOA is changing my varibale rate formula to screw me out of rate decreases...


Timothy wrote:
It is expected fro the FED to reduce another full point over the next 12 months-

I'm licking my chops. My USAA HELOC's variable rate is WSJ prime minus 0.95%.


***Hugs USAA HELOC!*** :smileywink:
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Moderator Emeritus
Timothy
Posts: 9,252
Registered: ‎03-19-2007
0

Re: BOA is changing my varibale rate formula to screw me out of rate decreases...

I don't know if BOA is the same- but normally when you reject these kinds of changes- they close your account right?



TXturnaround wrote:
I received the same letter for 2 accts that I have w/BOA and one of them is a closed acct. I sent a letter rejecting the APR increase. The address should be in the statement. It's funny how they always send these "agreement changes" that go in effect always in January. People are already trying to recover from holiday shopping in January & then turn around & you have a change to your credit card payments at the beginning of the year. Timing is everything!!




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