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TARP'ed bank BofA to Boost Rates on Cards With Balances

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April 09, 2009 – Comments (5) | RELATED TICKERS: BAC

 

Story:  BofA to Boost Rates on Cards With Balances

 

Starting with June account statements, any credit-card customer who carries a balance and has an interest rate below 10% will see his or her rate jump into double-digit territory. A company spokeswoman declined to provide an exact number, saying the changes would affect less than 10% of the bank's card customers in the U.S. The bank has 70 million card customers world-wide, but doesn't break out the number of customers who are in the U.S. "It impacts a small portion of our cardholders," said Betty Reiss, the spokeswoman.

The bank's move follows similar rate increases that other banks, including Citigroup Inc., J.P. Morgan Chase & Co., and American Express Co. have implemented in recent months. The banks, facing rising delinquencies, blame the economic turmoil. Many have been tightening the screws on people with less-than-perfect credit, but now they're pinching a broader range of customers who have good credit records, but carry a balance.

 

 

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Most of their customers are US taxpayers who help keep BAC alive. Now it is returning the favors back. BTW, the credit card delinquency rate is going up. Higher rate will certainly trigger more credit card defaults.

 

 

Welcome to Banana Republic of USA!

 

 

 

 

5 Comments – Post Your Own

#1) On April 09, 2009 at 2:14 AM, alstry (35.42) wrote:

Interesting....taxpayers give BoA billions of interest free money.  BoA gives executives Billions in bonuses.  Executives direct Huge donations to politicians.  Politicans increasing taxes on taxpayers.

Credit card loans are defaulting, in large part, because taxpayers can't pay the higher interest rates.

Ask yourself why should BoA get interest free money and NOT taxpayers.  Aren't we both Americans???????

Soon everything you own will belong to BoA and its exectutives....and you will own little or nothing.

 

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#2) On April 09, 2009 at 8:49 AM, Gemini846 (48.98) wrote:

It affects a small percentage of thier card holders because they've already put most people into double digits already.

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#3) On April 09, 2009 at 9:39 AM, columbia1 wrote:

I just got my notice yesterday, It went from 9.9% fixed to 15.65% variable. According to the representative I spoke to, BofA has to pay interest on the money the Government forced them to take, so that was the reason for increasing rates. What a crock of $hit.

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#4) On April 09, 2009 at 10:26 AM, Schmacko (55.25) wrote:

My discover card jumped from 6% to 18.99%.  Due to saved up cash back bonuses I currently have a negative balance on my card (i.e. they owe me money).  USAA did something similar... my 4% apr jumped to 6%.  I will never use my discover card again..... unless it's some kind of crazy unforseen circumstance.

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#5) On April 09, 2009 at 3:29 PM, whitrt23 (< 20) wrote:

I received my notice yesterday also.  I had a fixed rate 7.9% with a $45,000 credit line and a FICO score of 785.   I owe about $250.  My high point over the last 2 years was about $1500.  The notice said it would go up to at least 13.65 variable.  My advice is to demand to speak w/ a supervisor.  After initially being told that there was nothing that could be done,  i requested a supv. and received a fixed 9.9% rate.  I dont know if I won or lost but at least its better than 13.65 variable.

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