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

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

Anonymous — Wed, 12 Dec 2007 06:45:02 GMT

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?

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

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

ksiss — Wed, 12 Dec 2007 06:35:38 GMT

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***

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

Anonymous — Wed, 12 Dec 2007 06:35:38 GMT

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.

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

Anonymous — Wed, 12 Dec 2007 12:50:10 GMT

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

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

Anonymous — Wed, 12 Dec 2007 13:11:14 GMT

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-

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

Anonymous — Wed, 12 Dec 2007 13:15:57 GMT

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

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

Anonymous — Wed, 12 Dec 2007 13:38:07 GMT

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

@Anonymous wrote:

@Anonymous 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

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

TXturnaround — Wed, 12 Dec 2007 14:06:00 GMT

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!!

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

haulingthescoreup — Wed, 12 Dec 2007 14:08:32 GMT

@Anonymous 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!***

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

Anonymous — Wed, 12 Dec 2007 14:13:24 GMT

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!!

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

TXturnaround — Wed, 12 Dec 2007 14:32:48 GMT

No, they don't close your acct. If you use your account after the effective date, your APR will increase to the new rate. I've rejected one notice already back in June & my BOA account wasn't closed. I'm in the process of paying down the balance so the "APR increase" thought is helping me get there quicker.

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

Anonymous — Wed, 12 Dec 2007 14:45:26 GMT

so you are saying that if i reject the increase they won't close my account? that sounds unlikely. they can raise my rates whenever they want. that is in my initial terms and conditions. how is it that i'd be able to reject it and keep the old rate?

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

Anonymous — Wed, 12 Dec 2007 14:46:43 GMT

Most bansk will either close or refuse to renew with a rejection of a change in terms....period.

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

Anonymous — Wed, 12 Dec 2007 20:20:11 GMT

I looked at my husband's account online this morning and noticed that there's a statement about a notice in change of terms enclosed. I'm sure its what you've described.

I just apped last weekend for a pre-approved offer for a card in my name and the disclosure doesn't say anything about the rate being a three month rolling number. It will be interesting to see if this new policy will affect that account too. Its got a 0% fixed for 12 billing cycles, so it won't hit for a while.

The biggest gripe I have about credit card companies is that they can change the terms on you and if you decide to not obey they can close your account and ding you credit score! When's my chance to change the terms!!!!

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

Anonymous — Wed, 12 Dec 2007 21:18:23 GMT

it sucks... it really does. I'm still ticked off about this!

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

haulingthescoreup — Thu, 13 Dec 2007 00:38:43 GMT

@Anonymous wrote:
I looked at my husband's account online this morning and noticed that there's a statement about a notice in change of terms enclosed. I'm sure its what you've described.

My DH's statement came yesterday, and there was an enclosure saying that the dates on the notice they had sent previously were changed from January to April (which would be when the 12 months are up.) The same thing is on the website, but I can't find the original notice anywhere, and it's also not posted on the site. So I'm stumped whether he got this same notice or what.

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

Anonymous — Thu, 13 Dec 2007 00:47:06 GMT

I was readin today that BofA is experiencing some losses and expecting more. Would rather them pinch these pennies than to start hiking interest rates on custys.

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

Anonymous — Thu, 13 Dec 2007 01:53:51 GMT

@Anonymous 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-

*25 or 50 basis points 100 basis points = 1%

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

Anonymous — Fri, 14 Dec 2007 18:10:12 GMT

i'm still really pissed off about this

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

moonman — Sun, 16 Dec 2007 04:49:20 GMT

i have created my own personal credit card blacklist over the years and one of my policy is that when i pay my obligation faithfully with a cc company and my reward for doing that is changing my apr for nothing.my response is to close the account and tell them to shove it.regardless of a hit or not, get this card out of my sight.