BofA raising rates

[larryg]

Hi all!
I just wanted to make a few comments in case anyone is interested.
1st.......I have been on the edge of filing for almost a year but have managed to hang on without making any late payments. Now I have received a letter form BofA tellling me they are raising my cc rate to 20.99% because my debt to income ratio is too high. I will be calling them to try and work out a lower rate tonight or tomorrow. But I don't have much hope. They will push me over the edge and I will not have a choice but to file.

2nd......Some one on here asked about Dave Ramsey. I personally think anything we do to educate ourselves can only help. My family resents me giving them books for Christmas so this year I sat 13 books on the table by the door and told them all they could take home any books they wanted. There were 8 books on personal finance and budgeting (4 by Dave Ramsey) and the rest were healthy cook books and adding humor and positive attitude to your life and health. We had 12 guests and after everyone had left I had 4 books left. All of the personal finance books were gone.

3rd.....Right now I'm directing my anger at BofA. Keeping the doors open for a small business is always hard but we don't have the option of the big bailout like BofA.
Thanks for listening.

[jribe]

my husband had a boa card that we were always on time on, and made extra payments of hundreds every month (over minimum) and we got a letter in August that they were raising the rate to 25%. When we called, they also gave the debt to income excuse- and the only way they would keep our rate the same was if we didn't use the card any longer. At all. They said even one small purchase and they would increase the rate to the 25%. So we had been making the payments, and just realized recently that we have no choice but to file for BK. We don't like them much either!

[jktrading]

I believe you can keep your current interest rate if you write them and refuse the new terms. They will close your account, and that means you can't use them anymore. That should be in the small print on your rate jack letter.

[sick of debt]

They are jerks

[larryg]

Thanks for the responses. I'll be glad to close the account and keep my current rate if they will let me do that. I may be a sinking ship anyway but I will never pay them 20%. If they lower the rate I will see what January brings if they don't lower it they wont be getting a January payment then everyone else will raise my rates also and I'll be on my way to BK court.
As for my checking account I've already opened a new account at a different bank and I will be closing the old one soon.

[kenshirley]

Well they can't raise the rate on my RV loan.
I had to surrender it last Oct. I was current but could not pay for it.
They have not sold it to this day. Nobody wants a 39' motor home.
I had offers of about 1/2 of what I had paid for it not counting the big down payment we had paid on it the year before.

[jeb]

I stopped paying all CC's and one BorA consumer loan on the first of Dec.

Two days after the due date of the BofA loan they called. Not one of the others have even sent me a late notice as yet. - jb

[larryg]

Well!!!!!!!!!!!!!!
I talked to BofA this morning. It is not possible to keep my current rate because they feel that although I have not incurred any debt in the past year and I have never missed a payment with them or anyone else my available credit to debt ratio says I'm a risky person to do business with. However, according to them they will review this in six months and if I have paid off substantial balances at that time they will consider lower my rate again. Like anyone could pay off balances at 21% interest in six months.
What jerks.

[jktrading]

Well!!!!!!!!!!!!!!
I talked to BofA this morning. It is not possible to keep my current rate because they feel that although I have not incurred any debt in the past year and I have never missed a payment with them or anyone else my available credit to debt ratio says I'm a risky person to do business with. However, according to them they will review this in six months and if I have paid off substantial balances at that time they will consider lower my rate again. Like anyone could pay off balances at 21% interest in six months.
What jerks.

Are you sure you read all of the letter that was increasing the interest rate? I had the exact same thing happen to me with B of A, and they stated "in small print" that I could refuse the increase by writing a letter to a certain department by a certain date. It was stated that a phone call would not work and that it had to be a written letter refusing the new terms.

[larryg]

Yes I read all the small print. I do not have the option to refuse the increased rate. Maybe my letter is different because it is a business account. Or they changed their letter because so many people were closing their accounts. I was hoping they would let me keep the rate if I closed the account but that was not an option.

[banca rotta]

my husband had a boa card that we were always on time on, and made extra payments of hundreds every month (over minimum) and we got a letter in August that they were raising the rate to 25%. When we called, they also gave the debt to income excuse- and the only way they would keep our rate the same was if we didn't use the card any longer. At all. They said even one small purchase and they would increase the rate to the 25%. So we had been making the payments, and just realized recently that we have no choice but to file for BK. We don't like them much either!

I just don't know anymore. It just boggles the mind how they are adding to the crisis by jacking up rates, then pushing their customers into bk that had absolutely no intentions of filing. They will lose more money and ask for more TARP funds.

Either they are really as stupid as we all think they are or maybe they figure that most people will just keep paying these high rates for the rest of their lives.

Since most Americans have lost so much of their assets, IE home values, etc. the banks can't even recover anything when they push people into bk. What is their f*****g problem!! WHAT!

[Genenco]

I have my own personal chuckle at BofA expenses...

In Feb 2006, I was about to make my last payment on my 1996 Pontiac Grand Am. Never had I been so proud I'd kept up with payments (Only 3 late in 5 years!) and then a letter comes to me, that said "BofA had bought the note"

Hmmmm??? So I called, they (The previous note holder) said "Wait till they send you a statement"

I waited, and waited..Laid off in Feb, March came, April came. Then I get a statement from BofA saying "Pay us $275 and that's it" well, I sent the check, all of a sudden, my payday loans hit (whoops) and the account was shut.

Letter in mail from BofA "Here's your title, we thank you for your business"

Ummm..Gee, guess they didn't know the check would be returned...Hmmmm...

Now fast forward to 2008 June. Decided to check credit report..OK, yeah, repo, (Wells Fargo) note sold..Yeah..Debt sold to buyer....debt sold to buyer.... debt sold to buyer...(These were Durango, Lowe's and Citibank)

BofA...Account active, no lates, open good payment..HUH???

Oh well, guess they get to join the others one day..Heh!

[Flamingo]

Are you sure you read all of the letter that was increasing the interest rate? I had the exact same thing happen to me with B of A, and they stated "in small print" that I could refuse the increase by writing a letter to a certain department by a certain date. It was stated that a phone call would not work and that it had to be a written letter refusing the new terms.

JKTrading is correct - pull out the information/brochure you received when you first obtained your card (terms and conditions). I believe it is standard practice that if there is a percentage increase, you are given the option of writing to them within a certain period of time that you refuse the percentage increase and your account will be closed and the percentage will remain what it was and you cannot use your card anymore. They could be jerking your chain because they think you may not know any better or are not aware of that. Research your account or get them to send you a copy of your intial terms and conditions if you cannot find your original papers.

[banca rotta]

I have my own personal chuckle at BofA expenses...

In Feb 2006, I was about to make my last payment on my 1996 Pontiac Grand Am. Never had I been so proud I'd kept up with payments (Only 3 late in 5 years!) and then a letter comes to me, that said "BofA had bought the note"

Hmmmm??? So I called, they (The previous note holder) said "Wait till they send you a statement"

I waited, and waited..Laid off in Feb, March came, April came. Then I get a statement from BofA saying "Pay us $275 and that's it" well, I sent the check, all of a sudden, my payday loans hit (whoops) and the account was shut.

Letter in mail from BofA "Here's your title, we thank you for your business"

Ummm..Gee, guess they didn't know the check would be returned...Hmmmm...

Now fast forward to 2008 June. Decided to check credit report..OK, yeah, repo, (Wells Fargo) note sold..Yeah..Debt sold to buyer....debt sold to buyer.... debt sold to buyer...(These were Durango, Lowe's and Citibank)

BofA...Account active, no lates, open good payment..HUH???

Oh well, guess they get to join the others one day..Heh!

Hopefully I am wrong but sooner or later BOA will be looking for your payment. I had a very similar situation as yours once with a returned check, "bank a" bought "bank b" and they sent me the title along with a congrads letter.

After explaining it to these morons that this was an error they told me it wasn't. Six months later I almost got the car repoed due to non payment.

I hate hearing about layoffs but boy I just cannot cry for some of these people losing their jobs while letting this happen. Giving a payoff letter when it wasn't paid off.

[Genenco]

I hate hearing about layoffs but boy I just cannot cry for some of these people losing their jobs while letting this happen. Giving a payoff letter when it wasn't paid off.

I've debated for some time, in regards to wheather or not I should pay them off...In fact I was in MO and had BofA for a bank..After 2 incidents of checks being entered, removed then re-entered and bank account being charged for NSF charges I think they've made enough off me.

So, they get to join the others...Wasn't intending to screw them, but hey they've got to get their records straight. I surely ain't going to cry for them.