So tonight I get home from work and open my mail. I get a notice from Bank of America, who owns two credit cards that I have. Originally they were with MBNA America but became part of BofA a few years ago through a buyout. The notice tells me that, effective immediately, they are going to raise my rate from 7.99% to 13.65%.
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For full disclosure purposes I have never used the card beyond balance transfers and I have been making on time payments without fail. I pay a dollar or two above the minimum. The balance isn't increasing. It's steadily falling. My FICO score is well into the 700s.
So I called the number and the lady told me that this was a "business decision" and that BofA was doing this to everyone regardless of balance, spending pattern, or payment history. My only option was to "opt out of the change", which means that I am not to use the card. The second that I charge a purchase the interest rate rises.
I told the woman that I wanted to opt out of the change. She stated that she would send me a letter in writing through the mail indicating that I had opted out of the change and that my rate would stay the same, provided that I no longer used the card. Even though she said that I didn't need to do this, I also told her that I would be sending BofA a letter in writing indicating that I reject the changes. I mailed it tonight.
She did say, though, that they were getting lots of angry phone calls from borrowers who were paying on time, paying off their balance in full, and not overspending. She said that this decision was for all card holders, regardless of rating, status, payment history, or balance.
I told her that they were losing their best customers. I told her that I have been a cardholder with MBNA and BofA for twelve years now. I said that penalizing their best customers isn't going to improve their bottom line. She said that she would bringing this matter up at her "managers' meeting on Thursday".
I guess that I'm concerned because I also have a balance on another company's credit card at obscenely low rate. I have been making on time payments without fail. I fear that that this company may do the same to me.
Has this happened to anyone?