topic Re: APR increases due to "current economic climate" in Credit Cards

APR increases due to "current economic climate"

Anonymous — Sat, 09 May 2009 20:47:17 GMT

Just a rant...

Well, the only AA I have had so far is a rate jack on my Amex Blue and my BoA BankAmericard. The Amex Blue rate jack was late last year. November, I think. That's when I opened up my Citi card. Anyway, Amex finally lowered the APR back in February - and I didn't even have to call them. Next, BoA sent out their notices. There are multiple threads here on this.

Anyway, I called BoA a total of three times. And I was told: "Ms. Scout, your credit is excellent and you do NOT revolve a balance. The APR increase is due to the current economic climate. " I remained calm and professional. I explained that I will keep my account open and use it soley for my monthly Netflix charge. I told each CSR (supervisor, credit analyst, and manager) that I will use my other cards exclusively: Amex, Discover, Chase and Citi. I also told them that all of my other APRs are less that 10%.

My CCs are PIF each month. I try to only let one CC report a balance. So, I am done with BoA.

Re: APR increases due to "current economic climate"

GregB — Sat, 09 May 2009 21:03:53 GMT

Interesting,

My BofA Rewards (1% cash) card just went down from 10.24% to 9.24% to 8.24%. My Chase Starbucks reward (1%+ Starbucks) is 7.24%. My Discover remains at 13.99%, a rate I would never pay unless I was dying.

Are you sure your Discover is below 10%?

What difference does the interest make if you PIF? Perhaps they are trying to make their financials look better.

I wonder with all the combining of banks and cards if it is simply the specific type of card for the BofA card that went up.

Re: APR increases due to "current economic climate"

Anonymous — Sat, 09 May 2009 21:09:52 GMT

Yes, my Discover is at 8.99%.

And, no, the interest rate doesn't matter because I PIF. Just not happy with the rate jack.

My response to the rate jack is that I will use my BankAmericard only for my monthly Netflix charge and use my other CCs for everything else. And I mean everything else: groceries, gas, utilities, etc as they are all rewards cards. The other CCs have earned my business by giving me great APRs.

Re: APR increases due to "current economic climate"

haulingthescoreup — Sat, 09 May 2009 21:15:35 GMT

I hear you. It has to feel different when you're a prime customer.

I still think that this is a paperwork adjustment on their part. As you might have seen, BofA still has to show a ton of cash on hand as a result of the banking stress test. I realize that APR's aren't the same as having one's CL dropped so that they have more available cash, but I do think it's linked.

I had my CL dropped from $18K to $9K. When I called in hopes of getting it to $10K, they re-instituted the whole thing. But when I called yesterday to get them to stop sending me those freakin' checks, I had another 3rd-degree interrogation as to when and how I was going to start using the CL. I don't expect it to stay around for long.

I think that we're all just caught up in book-keeping wars. It's easy for me to say this, but don't take it personally. Because I don't think it's meant personally.

Re: APR increases due to "current economic climate"

athensguy — Sat, 09 May 2009 21:50:33 GMT

Also, telling them you're never going to use it will probably not convince them they need to give you an APR reduction.

Re: APR increases due to "current economic climate"

marty56 — Sat, 09 May 2009 23:15:47 GMT

@Scout1965 wrote:
Ms. Scout, your credit is excellent and you do NOT revolve a balance. The APR increase is due to the current economic climate.

Another perl of wisdom from a BofA. One I heard a few years back:

A 120 day late on your CR is only a sting.

So using BofA logic, I would tell the CSR that when they loose thier job when the company goes belly-up, that is only a sting to their employeemnt of course and is due to the current economic climate also of course.

Re: APR increases due to "current economic climate"

Itsmeagain — Sun, 10 May 2009 00:00:01 GMT

@marty56 wrote:
So using BofA logic, I would tell the CSR that when they loose thier job when the company goes belly-up, that is only a sting to their employeemnt of course and is due to the current economic climate also of course.

ROFLMAO !!!! . . . poetic justice.