Bank of America Will Not Raise Rates Ahead of Reforms
While credit card issuers are racing to raise interest rates on existing balances ahead of the reform provisions that will strictly forbid them from doing just that, refreshingly, Bank of America said that they will refrain from raising interest rates on their cardholders.
It really is beyond me that while the credit card companies as a whole are seen in a, shall we say, less than flattering light by their customers, that they would be jacking up rates and fees on cardholders before the credit card protection reforms kick in, but they are doing just that.
I myself just received a letter from American Express a few weeks ago saying that they would be raising my interest rates even though I have never, ever been late on a payment. I guess that’s my reward for being a good customer.
Bank of America credit cards have been hit every bit as hard, if not harder, than the other credit card companies during this recession. They had to go to the federal government for a massive financial bailout and are still being hurt badly by record high defaults.
Yet I must give them credit for having some integrity. The whole purpose of credit card reform is to stop abusive practices, so when we see credit card companies raising interest rates at the zero hour ahead of the provisions taking affect we see clear evidence of yet more abuse.
Key members of Congress on the finance committee have expressed their desire to see other credit card companies follow suit and abstain from raising interest rates ahead of the provisions which are set to take full effect in February 2010.
Only time will tell if they do in fact decide to be good citizens and not stick it to their customers yet again. In the meantime, Congress is scurrying to move the effective date of the final provisions up to December 1, 2009.
My question is, why in the world didn’t they make the provisions effective immediately when they drafted the legislation? How could they have not seen this coming? And then when it does happen they feign disgust? Talk about a dog and pony show.
Related Information:
- Issuers Raising Rates Ahead of Consumer Protections Find out how credit card issuers are rushing to raise credit card interest rates prior to reforms kicking in....
- Capitol Hill Moves To Immediately Freeze Interest Rates See how the call of Congress to freeze interest rates will affect you....
- Bank of America Introduces Its Credit Card Clarity Commitment Program Bank of America is attempting to be a little more user-friendly for their account holders....
- Bank of America Posts a $1 Billion Quarterly Loss Bank of America reports a $1 billion quarterly loss....
