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I have to admit I was a bit relieved and actually thought it was pretty cool after hearing when Bank of America "...first declared its pledge not to change terms between now and February in a letter dated Monday to Rep. Barney Frank, D-Mass., who heads the House Financial Services Committee." (CBS Online 10/7/09)
A bit of goodwill towards their customers? A way to get a bit of good press after recivieving all that TARP money?
Or just a way to snow over the committee members until BOA had a chance to get out all their terms of change letters before the Credit Card Act could be implemented any earlier?
Mmmm.
Well I got my letter yesterday. Did anyone notice how the letter was dated rather abiguously "October 2009"? "Gee Mr. Frank we sent out the letter about the change of terms BEFORE our October 5th pledge..."
I checked my original "Exclusive Offer" document which is peppered with terms (actually highlighted by BOA) like:
"This competitive rate will not be tied to an index, such as the Prime Rate, so the rate will not automatically fluctuate when the index changes."
"Since it's not based on a variable rate, it won't automatically fluctuate when the index changes."
On the other hand they never mention a "Fixed" rate it's only described as a "non-variable" rate.
And of course the biggest fine print loophole off all time: "We reserve the right to change our credit terms at our descretion."
The problem with these "offers" is that they are writted by contract lawyers on one side and read by non-contract lawyers on the other, in other words, us. And they know this.
The worse part of about all of this is that there is no "opt-out" option. So the consumer is effectively locked in a variable rate contract after he/she was heavily, heavily led to believe it was fixed rate contact. In my opinion that is the definition of deception.
Sounds like a class action lawsuit should be forthcoming.
Lesson here: Close all Bank of America accounts. Find a credit union if you have to carry debt. Send a fedex to the CEO and tell him why you are moving your account. If even 100,000 good customers did this there would be reform without Congress lifting a pen.
Done. I closed the account, moved my business accounts and was able to transfer another small loan to my wife's credit union.
Their reaction? Well, we're sorry, you're a great customer w/ a good standing with us, and we're sorry, but you have to do what you have to do. I'm actually considering using some savings to just pay it off and be done with it, but that would kind of defeat the original purpose.
I hope I get the letter, but after dealing with them, I'm not holding my breath.
Agree, I will be watching/waiting closely by the mailbox. I still have not heard by phone or e-mail anything. You should post a pic of the body of your letter & copy of the correspondence that they would return ALL accounts to previous states, so that it is out there and people can refer to it.
Great news.
The letter they sent to me was pretty specific to my account and had self-protective language everywhere in it. The committment the office of the CEO made to me was over the phone and unfortunately not in writing. Let's see what happens over the next week or so...
BofA executive branch called me today to let me know that my loan will remain fixed and I will receive me letter in 7-10 days SO WE WON thanks to the other post that had the link to lodge a complaint I think thats what worked.
Just got off the phone with customer service rep. OH look my rate has been restored to 7.99% fixed APR on MB Goldopt account. Great job to all of us for taking the time to file complaints with State AG's etc. Finally a win for us little guys! I still plan on sticking it to BofA any chance I get after this sleazy stunt!
What should we take on next!!!???
Just finished talking with BoA. Some Gold Option LOC customers will be returned to fixed rates, however it is not across the board and is not applicable to all customers even those who were MBNA customers.
They couldn't tell me if my account was going to be restored or not, just that it was pending to be under review because of my complaints and questions.
Just finished talking with BoA. Some Gold Option LOC customers will be returned to fixed rates, however it is not across the board and is not applicable to all customers even those who were MBNA customers.
They couldn't tell me if my account was going to be restored or not, just that it was pending to be under review because of my complaints and questions.
I had a feeling it would be like this. I couldn't really believe BoA would return every customers rate back just like that. They know the majority of people will just suck it up. Fortunately mine hasn't moved yet and I'm paying mine off entirely real soon. I suggest those of you who can't get rid of your debt with them soon to call them and voice your anger and threaten complaints to your state AG since that seems to be working for some people here.
I had a feeling it would be like this. I couldn't really believe BoA would return every customers rate back just like that. They know the majority of people will just suck it up. Fortunately mine hasn't moved yet and I'm paying mine off entirely real soon. I suggest those of you who can't get rid of your debt with them soon to call them and voice your anger and threaten complaints to your state AG since that seems to be working for some people here.
Personally I am writing a letter that includes a copy of the original statement that "your interest rate will not be tied to a variable yada yada yada." I will tell them that my lawyer has indicated that yes, this is bait and switch and grounds for a class action lawsuit - I will then give them until January 2nd to return my account to non-variable and to indicate this to me in a letter or I will start the class action lawsuit in California.
No calling the AG, no calling a Congressman, simply starting a class action lawsuit and turning it over to my lawyer....
Done. No complaining, no wasted time with calls.... I don't have time for that crap.
after doing research, it seems we don't have a leg to stand on it seems. Comptroller of the Currency even says that unsecured LOC's...CAN have their terms changed at will like credit cards. This is the only bit of good news then since "offically" the LOC's have to be treated like CC's...but the rates can be turned to variable at a whim.
I called BOA on Tuesday to ask about this and the rep immediately told me that the change in terms had been reversed and everything was staying as it was. She absolutely left me the impression that this was across the board for everyone, but I have no way of know as I did not ask that question explicitly. I then asked if I would be notified about this in writing and she told me that "all of that has already been processed and mailed out".
I have not received anything in the mail yet, but these things can take a few weeks from decision to printing to mailing and then actually receiving it. I decided to just pay off the line anyway and if I want to make a new draw on the account I can be sure the terms are iron clad before taking out the money. I just do not trust this situation and figured this was the best way to go. Sometime in spring the variable rates ARE going to start trending upward and I did not want to get stuck having been lied to about this.
If I get a letter I will post again when it arrives!
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