Like I’m sure many of you have, I received a notice in my bill a couple months ago that the interest rate on my credit card was being jacked up (more than double what it was). I called to opt out of the increase and thought I could continue using the card at the previously agreed rate until it expired – this is how it’s worked with other cards, and the representative I spoke to gave no indication otherwise.
This month I was shocked to see that I was still being charged the same exorbitant rate. I called back and was told that since other charges had been made to the account (two monthly subscriptions totaling less than $25), the entire balance was now subject to the higher rate and it was “non-negotiable”. They claim that a notice was sent out earlier this year explaining this part of the policy, but I received no such notice, nor was I notified in the statement that told me about the rate increase or on the phone when I called to opt out. I find it hard to believe that unilaterally changing the terms of my account without notifying me or obtaining my consent is legal.
I have a significant balance on this card, and the higher interest is pushing the minimum payment to a point where I cannot afford it. Even if I could afford it, I can’t stand the thought of giving these thieves another couple hundred bucks a month just because they’ve decided it’s a good time to screw me.
I’m still engaging with the bank, but so far they’ve shown no signs of budging. I’ve filed a complaint with my state attorney general, but the bank is in a different state so I’m dubious that anything will come of it. What other options do I have? What should I be prepared for? Is it important for me to dispute the charge in writing rather than on the phone? What can I do to protect my credit rating as much as possible during this dispute?
I’m not an expert, I’m sure others will chime in with more detailed info. Two points, though:
First, yes, ALWAYS communicate disputes in writing. The fine print of most credit agreements even state this.
Second, I’ve never seen a case where opting out of an increase meant you could continue to use the card at the previous rate. In every increase notice I’ve ever seen, opting out meant you were closing the account. You could continue to pay off the existing balance as usual, but you could not use the card any more.
The other card I had in mind was a Shell MasterCard issued by Citi. When I opted out of their recent rate increase, I was told that the previous terms would apply until the card’s expiration date, and I have in fact used it since then.
I have also seen the terms you describe, where opting out meant I could pay off the balance at the previous rate but the account was otherwise “closed”.
What surprises me is the policy this bank is trying to impose, by which opting out is temporary and conditional: they apparently want to keep the account open and allow new charges just so that they can misrepresent the policy and lock me into the higher rate against my will.
It goes both ways… I have had cards closed when I opted out (but continue to pay off the balance at the interest rate in effect prior to the opt-out) and I’ve also had cards left open until the expiration date on the card.
I expect that most banks will take an opt-out to mean that you cannot use the card any longer.
My recent Bank of America card rate-increase form said that if I opted out by a certain date, then any use of the card after that time meant I accepted the new conditions after all. I opted out and will be closing the card after the current balance is paid off (for several reasons, not just the rate change).
My other recent rate-increase (Chase) said that the account would be considered closed if we opted out. I wouldn’t put it past them, should we opt out, to not refuse additional charges, but instead to treat such charges as saying we’d decided to go with the new rates. As we don’t maintain a balance on that card, it doesn’t matter either way.
I’d suggest scrounging up the cash to pay the card down as fast as possible, meanwhile investigating other options for servicing that debt (new card with balance transfer, card with credit union, signature loan, etc.).
Hmm. The account in question is with none other than those swindling, deceitful parasites at Bank of America. It sounds like you got off lucky: they told you what the deal was before it was too late.
Oh, the things I could do if I had cash to scrounge up…
Yeah, ain’t that always the trouble. If you can swing even an extra 10 bucks here or there, that’s 10 bucks sooner you’ll be free of the parasites.
I feel a bit sad at closing the account, it’s descended from one I’ve had for most of 30 years (no joke). When they were North Carolina National Bank, they were the only bank that offered credit to students. So I got a card, with a 200 dollar limit, and that was my first step on the way to building credit. Then they became NCNB, then BofA bought NCNB. So far so good. Then last summer, I got a bill showing a late fee, interest rate jacked up, etc. Bwuh? Got online - and found that the automatic payment I’d had set up (it was supposed to automatically go to my checking account for the minimum payment) never got made.
See, a few weeks before, they’d sent me a new card, with a new number. Gold upgraded to Platinum, or Platinum upgraded to Unobtainium, or Tin upgraded to Messwithitjustforthehellofitium. The balance (a few hundred bucks) transferred over, but the payment instructions did not.
A couple of phone calls and they backed down. Paid that off a month or so later, then foolishly took advantage of a courtesy check to pay for Moon Unit’s orthodontia. Zero percent through this October, then reverts to existing cash advance interest rate which wasn’t too insane.
Now they’re charging me 1.50 a month in interest (minimum finance charge? WTF?). I need to raise heck with them about this, but I suspect they won’t be terribly accommodating seein’ as how I’ve already opted out of the other rate increase. We’ll pay off (or transfer) the balance when the promo rate expires, then bye bye BofA.
My Bank of America Visa was at 9.5% for years, then all of a sudden it went to 14%. They said that they notified me in April, but I didn’t ever read that. Silly! Also, they recently reduced my available charge balance from 20000 to 12000. Why? I always paid my amount due when it was due. Never late…never! I am not using it any more and when I pay off the balance, I will cancel the account. I have others that work better for me. Screw off BofA!!!
Oh, man, you don’t know the half of it. At this point I would love to be paying only 14%.
I don’t see how it can be legal for them to interpret anything I’ve done as an agreement to accept these new terms when I wasn’t aware of how they were going to interpret it. Is there a class action suit related to this issue? Surely I’m not the only one who’s gotten this treatment.
So, let’s see, if I send the bank a letter which they may or may not read or even receive, stating that by using the word “unfortunately” on the phone with me they agree to reinstate the lower rate… and then they use the word “unfortunately” on the phone with me… does that mean they agree to reinstate the lower rate? Because they have just as much evidence that I sent them that letter as I have that they sent me the one they’re trying to hold me to! :dubious: