Bank of America pledges halt on card rate hikes

[bakalao2k]

WASHINGTON (Reuters) – Bank of America (BAC.N) said it will not change the terms on consumer credit card accounts ahead of reform legislation slated to go into effect early next year, according to a letter released by a lawmaker on Tuesday.

Christopher Dodd, chairman of the Senate Banking Committee, released the letter, dated October 5, and called on other companies to follow Bank of America's lead.

"In light of the concerns expressed to us by our customers, Bank of America will not implement any change in terms (risk or economic based) re-pricing of consumer credit card accounts between now and the effective date of the CARD Act," the letter said.

[Anonymous]

i work for the bank in the credit department for cunsumer cards and i can tell you that they are making a lot of BIG changes and are being very hush hush about a lot of it.

[creditwherecreditisdue]

Repricing, i.e. RJ, is only part of the AA arsenal. CLD seems to be BofA's flavor of the month right now.

[pattycake]

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@Anonymous wrote:
i work for the bank in the credit department for cunsumer cards and i can tell you that they are making a lot of BIG changes and are being very hush hush about a lot of it.

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Oooooh, do tell...

[Anonymous]

to be honest the higher ups aren't really giving out any info just little snippets here and there leak out onto the floor. i do know that several sites have closed their consumer card areas and transferred all their efforts over to business lending.

[Anonymous]

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@bakalao2k wrote:

WASHINGTON (Reuters) – Bank of America (BAC.N) said it will not change the terms on consumer credit card accounts ahead of reform legislation slated to go into effect early next year, according to a letter released by a lawmaker on Tuesday.

Christopher Dodd, chairman of the Senate Banking Committee, released the letter, dated October 5, and called on other companies to follow Bank of America's lead.

"In light of the concerns expressed to us by our customers, Bank of America will not implement any change in terms (risk or economic based) re-pricing of consumer credit card accounts between now and the effective date of the CARD Act," the letter said.

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Guess I'm confused or slow and dont understand the above cuz BofA raised my APR from 15.99% to 24.99% on my Accelerated AMEX.

[IOBA]

Copper - your identity is safe with us.

What else can you share with us about the changes that are being made?

I know that I have tried 3x over the last year to close my savings account and B of A will NOT allow it to happen.  They basically give me 3 months at a time, no fees, no minimums.   I have the minimum in there now, but they just won't let the account close.

The other thing I noticed is that they would not approve an overdraft protection connected to a B of A cc.  I thought that was really strange!  I have 19k in credit with them, never have bounced a check, have a high credit score, and was denied overdraft protection earlier (much earlier) this year??? 

[Anonymous]

i just got an email stating that i'll be making a transition to our business lending office effective immediately. honestly i think it's that most people are leveling out on their debts and or hardships and we are starting to see a trend or upswing in the consumer side of the business. truth is almost all of our business don't even report to the cra's at all so the bank is experiencing a higher loss on the business side of things. if i have to guess i'd say that business owners will now start seeing what cardholders have been seeing recently with rate increases and cld. i could be very wrong but somehow i don't think that i am.

[haulingthescoreup]

Glad they're keeping you on, anyway, even if you're switching offices! --in fact, maybe that will wind up being a semi-promotion or something.

[pattycake]

My sisters both work for BoA and I can verify they are shifting people around there.