This news makes me very glad I'm not a Bank of America credit card customer:
(headline is linked)
The nation's biggest bank is doubling interest rates for some of its most
responsible credit card customers.
Credit card issuers
have drawn fire for jacking up interest rates on cardholders who aren't behind
on payments but whose credit scores have fallen for other reasons. Now, some
consumers complain, Bank of America is increasing rates based on no apparent
deterioration in their credit scores at all.
The major credit
card lender in mid-January sent letters notifying some responsible cardholders
that it would more than double their rates to as high as 28%, without giving
explanations for the increases, according to copies of five letters obtained by
BusinessWeek.
Fine print at the
end of the letter -- headed "Important Amendment to Your Credit Card Agreement"
–- advised calling an 800-number for the reason, but consumers who called say
they were unable to get a clear answer.
more at the linked article...
I've known for a long time that Bank of America (and MBNA) are evil
businesses, but this really takes the icing on the cake. Customers who've
done absolutely nothing wrong finding that the interest rates they are required
to pay for their credit cards are doubling?!!? As much as I normally
despise government interference in the free market system, this really does cry
for the government to step in and smack the crap outta these corporations for
these predatory practices. For many of these customers these increases
will result in creating a spiral that leads straight to bankruptcy, except, oh
yeah, by the way, MBNA and their lobbyists already bought off the Congress to
make walking away from debts like these via bankruptcy much more difficult.
MBNA and Bank of America, etc., have done their best to create a steady
stream of the highest income levels (for themselves) that they can. When
is enough, well, enough?
I guess when the masses rise up and really demand change via calls to their
elected representatives to do something, anything, to improve the situation.
