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Old 10-10-2009, 01:39 PM
 
Location: The Milky Way Galaxy
2,240 posts, read 3,605,540 times
Reputation: 1430
Default Bank of America Gold Option Loan Fixed to Variable Rates???

Does anyone have this? I opened up one a couple years ago before the market crashed and I opened it up because it was a fixed rate for the life of the loan. I moved over some variable rate school loans over to this one for the obvious reason that I wanted to keep my rates fixed since at the time the rates were moving upwards like crazy. So I got a loan for $15K fixed at 8.99% over 5 yrs.

Well today I received a letter in the mail from BoA saying the rate will now be changed to a variable rate. The variable rate will be 5.74 (margin) plus the index (3.74%) which is my current 8.99%. Basically once the fed started raising interest rates, so does my loan rate.

I called the BoA rep and the representative stated I needed to read the fine print in the beginning then because it says they have the right to change it to a variable rate anytime they wanted to. He also stated this is happening with all their Gold Option Loan customers. I believe this to be absolute BS but unfortunately I don't have my original paperwork to read any fine print.

I believe this to be a very misleading type of loan they marketed out hard 2 yrs ago and I feel very vulnerable about the situation. I tried to find information on my loan to see if I could find anything about this clause and I could not. I have always paid my payments on time and my credit score avg is 730.

What protection and options do I have as a consumer here? I am hoping more Gold Option owners come forward and complain about this as I just received the letter today.

Please post only if you have some good advice to share. Flamers keep out.
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Old 10-10-2009, 01:58 PM
 
Location: Great State of Texas
73,363 posts, read 33,555,639 times
Reputation: 17427
Quote:
Originally Posted by mgt04 View Post
Does anyone have this? I opened up one a couple years ago before the market crashed and I opened it up because it was a fixed rate for the life of the loan. I moved over some variable rate school loans over to this one for the obvious reason that I wanted to keep my rates fixed since at the time the rates were moving upwards like crazy. So I got a loan for $15K fixed at 8.99% over 5 yrs.

Well today I received a letter in the mail from BoA saying the rate will now be changed to a variable rate. The variable rate will be 5.74 (margin) plus the index (3.74%) which is my current 8.99%. Basically once the fed started raising interest rates, so does my loan rate.

I called the BoA rep and the representative stated I needed to read the fine print in the beginning then because it says they have the right to change it to a variable rate anytime they wanted to. He also stated this is happening with all their Gold Option Loan customers. I believe this to be absolute BS but unfortunately I don't have my original paperwork to read any fine print.

I believe this to be a very misleading type of loan they marketed out hard 2 yrs ago and I feel very vulnerable about the situation. I tried to find information on my loan to see if I could find anything about this clause and I could not. I have always paid my payments on time and my credit score avg is 730.

What protection and options do I have as a consumer here? I am hoping more Gold Option owners come forward and complain about this as I just received the letter today.

Please post only if you have some good advice to share. Flamers keep out.
I would say not much you can do since it was in the fine print.
If you cannot pay it all off then you might want to start shopping around.
Credit Unions are fairly decent but still, ask before you sign any papers and definitely read the disclaimers.

Also, you can ask the bank to send you a copy of the Gold Loan paperwork so you can verify the terms and conditions yourself.
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Old 10-10-2009, 03:52 PM
 
Location: Warwick, RI
1,911 posts, read 2,113,640 times
Reputation: 2804
Quote:
What protection and options do I have as a consumer here?
The best consumer protection option available to all of us IS us. You have the option to read the fine print BEFORE signing it and entering into an agreement with the bank. If you don't like the terms, don't sign for the loan. If enough of us started telling banks to pound sand with their terms, the terms would be better. If you choose not to understand the terms of your loan, don't complain after the fact - the bank is just doing what they said they might do. Learn a lesson, pay them off as quickly as possible, and never do business with them again.
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Old 10-10-2009, 04:28 PM
 
Location: The Milky Way Galaxy
2,240 posts, read 3,605,540 times
Reputation: 1430
Quote:
Originally Posted by treasurekidd View Post
The best consumer protection option available to all of us IS us. You have the option to read the fine print BEFORE signing it and entering into an agreement with the bank. If you don't like the terms, don't sign for the loan. If enough of us started telling banks to pound sand with their terms, the terms would be better. If you choose not to understand the terms of your loan, don't complain after the fact - the bank is just doing what they said they might do. Learn a lesson, pay them off as quickly as possible, and never do business with them again.
I should've mentioned I read the fine print before signing it and just don't remember anything about the rate being able to be changed. I just don't have the original paperwork anymore.

And I dunno why you bother even responding. I already said flamers keep out I don't need to hear your condescending crap.
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Old 10-10-2009, 04:29 PM
 
Location: The Milky Way Galaxy
2,240 posts, read 3,605,540 times
Reputation: 1430
Quote:
Originally Posted by HappyTexan View Post

Also, you can ask the bank to send you a copy of the Gold Loan paperwork so you can verify the terms and conditions yourself.
Thanks thats a good idea
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Old 10-11-2009, 07:32 AM
 
Location: Warwick, RI
1,911 posts, read 2,113,640 times
Reputation: 2804
Quote:
Please post only if you have some good advice to share. Flamers keep out.
Funny, I thought I WAS posting good advice.


Quote:
I already said flamers keep out I don't need to hear your condescending crap.
I honestly do not mean to put you down personally in any way at all, really. What I posted was in no way a flame, nor was it consdescending in any way. It was just good old common sense, and it was a lesson that I personally had to learn the hard way many times over the years. That lesson being that, ultimately, the only person who will watch out for you is you. Why do we all look to others, namely the government, to provide protections that we are responsible for ensuring for ourselves? And why does everyone get so offended when someone preaches simple common sense? If more people understood that we are each responsible for our own protections, maybe we wouldn't be in such a mess in this country today.

But I guess you'd rather have a thread full of responses from others who will try to figure out how you can get out of a bad deal that you agreed to, or who will comiserate with you about how evil the big bad banks are, because that's easier, right? Again, I apologize if this isn't what you want to hear, and I mean no offense, but this should be about learning a lesson and getting smarter about future transactions, and not about what makes us feel better.
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Old 10-11-2009, 02:54 PM
 
10 posts, read 29,923 times
Reputation: 12
I receieved the same shocking letter! I found my original terms which state in underlined text "Even better, this is not a variable rate tied to an index." Please see below for my post on NYtimes.com and a copy of the email I sent to Barney Frank.

BoA has been getting plenty of press this wee about their announcement they would freeze rate increases. How sly to - the prime rate is at the lowest level since 51. Average for the past 10 years is about 7%.

Bank of America Makes Pledge on Credit Card Act - DealBook Blog - NYTimes.com
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Old 10-14-2009, 11:53 AM
 
4 posts, read 15,495 times
Reputation: 11
I just got it last night. Fine print? I opened my line over the phone, never signed anything. There is no fine print! What the heck can I do??
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Old 10-14-2009, 12:46 PM
 
Location: Castle Hills
1,054 posts, read 1,521,124 times
Reputation: 525
Quote:
Originally Posted by mxbxr View Post
Please see below for my post on NYtimes.com and a copy of the email I sent to Barney Frank.
Did you just say you sent a letter to Barney Frank? As in the irrational gay house of representative Barney Frank? lol at that. You just made my day!
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Old 10-14-2009, 12:47 PM
 
Location: Castle Hills
1,054 posts, read 1,521,124 times
Reputation: 525
Quote:
Originally Posted by catmann View Post
I just got it last night. Fine print? I opened my line over the phone, never signed anything. There is no fine print! What the heck can I do??
Pay off your debts and stop crying about it. Thats the best advice I can give you.
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