Bank of America increasing my APR… So long BofA
Posted by Lau on April 10, 2009
I received a “Changes to your Credit Card Agreement” letter 2 days ago from Bank of America. I always read them. They include terms in these that they hope you won’t find out about until it’s too late.
What is in store from BofA?
Annual Percentage Rate: We are raising APR on your account. We will use the Variable Rate formula with a margin of 12.95%. The index being used is 4%.
What it means for me: my APR is jumping from 7.90% to 16.95%. Ouch!
Transaction Fee: We are adding or increasing certain transaction fees. New fee will be 4% on the following: Balance transfers, cash advances and equivalent, etc.
What it means for me: These fees used to be (as for the majority of credit card companies) at 3%, with a cap anywhere between $50 and $100. No mention of a maximum is made, so I have to assume there is none. For me, it doesn’t mean much since I’ve never done any of them with that card. But if I was thinking about doing any balance transfers, I now know I won’t be doing it.
Foreign Transaction Fee: The definition of what constitute a “Foreign Transaction” is expanded to include transactions in US dollars if they are made or processed outside of the United States.
What it means for me: again, not much. I don’t use this card outside of the US.
Bottom line
Big mistake on my part: I have a (quite considerable) revolving balance on my BofA card. My finance charges for the past few months has been around $50. The APR increase means I would see the finance charge more than double. Thank you, but no, thank you!
First step is to convert all the points I can to cash. Then, I go hunting for the “How to reject these changes” section. And I find it. I can call (877) 432-9925 or write to FIA Card Services, NA, PO Box 15088, Wilmington, DE 19850. The deadline is May 1, 2009.
Next step: pay this off!
Conclusion
I have been trying with a passion to avoind Bank of America. I don’t have anything against it particularly, but it’s just too big a financial institution for me. MBNA was bought by BofA within a few years of me getting this card. Now Countrywide (my mortgage company) is being bought by them as well… I guess next is my list will be to get rid of that loan. This just never ends
