BUSTED: Bank Of America Caught Lying About Not Raising Credit Card Rates

bank of america credit card

We were so naive. We honestly thought that the major banks and credit card issuers would engage in a big campaign to clean up their image (if only for show), while getting behind some self-serving consumer financial protection regime.

But no. They reall seem hellbent on making their customers hate them, while giving ammo to zealous regulators and consumer-advocacy types.

TheStreet.com: It seems Bank of America (BAC) has already reneged on its Oct. 6 promise to stop raising interest rates on existing customers’ credit cards.

A week after making the pledge, Bank of America said it would begin introducing annual fees, ranging from $29 to $99, to select customers next year. The two announcements result in a net win of zero for consumers as well as an unethical bait-and-switch. Why? Because, according to regulations, interest rates and annual fees fall under the same umbrella. They are both considered finance charges.

The introduction of new annual fees to existing credit-card accounts will result in increased finance charges. For insight, consider that the addition of an annual fee of $50 on a credit-card account with a $500 balance and a 10% interest rate would double total yearly finance charges. Bank of America is simply using the introduction of new fees as a way to shore up its credit-card portfolio in the face of narrowing profit margins. Read the whole thing >

This, of course, comes amid a flurry of alleged bad behaviour on the part of card issues, ranging from shock cut-offs to insane APRs. It’s like they’re making it too easy for their haters.

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