I Just Got Screwed by Bank of America Credit Card
2Koncepts
America, and I am a EXTREMELY pissed off right now and wanted to VENT
and see if you think I am justified in being so PISSED OFF and what you
would do if you were in my situation.
Please read... and then give me your honest opinion of the situation. I
am seriously considering starting a class-action lawsuit; because I
know that I am not the only person this has happened to... in fact, I
bet it has even happened to YOU!
Here is the deal...
Recently Bank of America sent me a promotional offer to transfer my
higher interest credit cards to their company at a special 0% APR. Of
course I jumped at the deal and decided to transfer a balance from
another card with a higher interest rate.
Here is what I did and how I got screwed...
My credit balance was $0 and my credit limit on the Bank of America
card was $3,500 and I decided to transfer the whole $3,500 balance from
another high interest credit card. Sounds good right? Well, when I
received my first bill in the mail from Bank of America my new balance
was $3,545.48 a portion of which was for an OVER THE LIMIT FEE, so I
immediately called Bank of America and they claimed it was because the
transfer was subject to a 4% "Cash Advance Fee," but wasn't I
doing a "Balance Transfer?" Now here is the kicker... they also
proceeded to tell me that since I am now over the limit, my credit card
is no longer eligible for the 0% interest rate and my new interest rate
is 7.9%.
So, I thought that I was going to have a credit card with $3,500 owed
and an interest rate of 0%, but now I have a credit card with $3,545.48
balance and an interest rate of 7.9% and Bank of America absolutely
would not do anything about it. All they could say is that I should
have read the fine print; which I did. In my opinion, this is a total
scam and I want to know if this has happed to anyone else. Please, read
the offer for yourself and see if I am crazy or even stupid. I really
think that Bank of America is just trying to pull the wool over
people's eyes and trick them into transferring their balances in
order to deceive them into paying, not only and over draft fee, but
also a higher interest rate than what was promised.
Just one more thing... notice that in the first paragraph they clearly
call it a balance transfer, then in the second paragraph they call it a
cash advance. That is what I am having the most trouble with... why
didn't they just say that this balance transfer is subject to a 4%
fee?
Now I ask, do any of you think this is ethical or even legal?
Finally, does anyone know of a good attorney for a case like this? I
really don't think they should be allowed to do this to anyone
anymore.
Here is exactly what the offer stated in the fine print:
The Annual Percentage Rate for Balance Transfers made prior to August
31, 2005 and for balances created using the enclosed promotional
convenience checks, is a fixed rate of 0% (0.0% corresponding Daily
Periodic Rate) ("Promotional Rate") through 12/10/05
("Promotional Period"). Thereafter, a fixed rate of 7.9% (0.02165%
corresponding Daily Periodic Rate) will apply to these balances until
paid in full. If at any time during the Promotional Period we do not
receive at least the Minimum Payment Due, you exceed your Credit Limit,
or you close your account, your Promotional Rate will terminate and
thereafter, any remaining unpaid balances will accrue interest at your
standard contract Purchase Rate. Please note that, unless you are a
Financial Rewards member, you will not earn Rewards credit, miles,
points toward free travel or merchandise, nor will you qualify for
charitable donations from the use of these checks as stated in your
Cardholder Agreement.
The Cash Advance Fee is 4% with a $5 minimum and $50 maximum per
transfer or check used. This fee will post to your account as a cash
advance fee and receive a cash advance rate.
LOCATION OF SCANNED COPY OF FRONT OF OFFER
http://www.thefcff.com/bofa/0APR-FRONT.tif
LOCATION OF SCANNED COPY OF FINE PRINT
http://www.thefcff.com/bofa/0APR-BACK.tif
saving advice
jasonbarba
If I were you I would keep escalating until you reach someone who
doesn't want to tell their manager that they have an issue that they
cannot deal with and out of fear of looking bad to the boss, will do
what is right to fix this situation.
You are absolutely right and should stick to your guns.
InDebt-Ted
off of you. The promotional and introductory offers are always there to
lure your business, then they wait for you to screw up. They put a
slew of penalites in place so that you are highly inclined to fall off
the tight rope.
- Falling behind on a different card or other debt, will cause most
credit card companies to raise your rates...this indicates that you are
potentially going to be a higher risk so they boost your rates...
- What I find to be quite sad and funny is that the bankruptcy reform
act is coinciding with the credit card companies raising their minimum
payments...what this means is that they are saying you cant declare
bankruptcy for credit card debt (old utilities, or medical expenses,
etc if you make more than a certain income). Then they are also going
to require that you send more money towards your bills. Bottom line
being if you owe $10,000 right now, your payments are probably $200 a
month. By the end of the year they could be as high as $400. So those
people living on minimum payments are screwed.
I found a bunch of info on the internet about this, including
www.solveyourcreditproblems.com.
http://credit.about.com/od/creditanddebitcards/a/051805.htm
http://www.wjla.com/news/stories/0705/241351.html
if you are falling into the fringe category, keep in mind that entering
into a debt management plan can lock your repayment in at a lower
percentage...it isnt for everyone, but if you are struggling look into
it...I think the solveyourcreditproblems.com does debt management, but
I am not sure, anyway there are a lot of places that do.
You should take a look.
I would definitely attempt to get the problem with B of A sovled,
though. 7% is nt that bad, but it is a whole lot worse than 0%. In
some cases arguing your way to the top, coupled with making your own
concessions (pay the 4% fee and overlimit fee if they resore the
introductory rate). It might have been a mistake, but as I said, that
is what they are waiting for...
Best Luck
Ted