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Post by ty on May 16, 2011 14:03:25 GMT -5
Bank of America to introduce 'penalty rates' for late paymentsdetnews.com/article/20110516/BIZ01/105160315Bank of America to introduce 'penalty rates' for late payments Rick Rothacker / / McClatchy Newspapers Charlotte, N.C.— Bank of America Corp. has started telling customers that it may increase the interest rate on their credit cards if they're late on payments. Notifications sent with bills this month say the Charlotte bank can apply a "penalty rate" of nearly 30 percent to future balances. A bank spokeswoman said a late payment won't automatically trigger a penalty rate. The bank will review the account to determine if the new rate is required, taking into account other risk factors. The change will go into effect June 25, according to a customer notice. If the new rate is applied, customers will be notified 45 days in advance. Under the new policy, the annual percentage rate, or APR, could reach as high as 29.9 percent, said the notice. If implemented, the new rate will apply indefinitely, but the bank will review accounts periodically to determine if the rate can be cut. The bank noted it has e-alerts to remind customers when payments are due. They can avoid the penalty rate by not using their card for new transactions. The bank said it hasn't raised interest rates on existing credit card balances since credit card reform legislation went into effect last year, even if the customer is 60 days late, and it doesn't have plans to do so. The bank didn't previously have a penalty rate, unlike some other issuers. Recently, Bank of America said first-quarter revenue in its card services unit, which includes debit and credit cards, fell 18 percent to $5.6 billion from the same period a year ago. At the end of the first quarter, the bank said it had average consumer credit card loans outstanding of $134.3 billion. About 4.8 percent of these balances were at least 30 days delinquent, an improvement from 6.8 percent a year before. From The Detroit News: detnews.com/article/20110516/BIZ01/105160315/Bank-of-America-to-introduce-‘penalty-rates’-for-late-payments#ixzz1MXlX7nRg
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❤ mollymouser ❤
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Post by ❤ mollymouser ❤ on May 16, 2011 15:00:02 GMT -5
I thought it was reasonably common in the credit card industry to jack up the rates on accounts that were past due.
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Post by Savoir Faire-Demogague in NJ on May 16, 2011 15:17:34 GMT -5
I thought it was reasonably common in the credit card industry to jack up the rates on accounts that were past due.
Yeah, like this is a big revelation.
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AgeOfEnlightenmentSCP
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Post by AgeOfEnlightenmentSCP on May 16, 2011 16:08:01 GMT -5
I'm no fan of B of A, but really- is this new, or something? I thought it was pretty standard.
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Post by bobbysgirl on May 16, 2011 17:02:42 GMT -5
B of A is not a bank I would choose to do business with.
They reported they did not raise rates after the legislation, but most banks did this before the changes to be prepared for the changes. Am I wrong in remembering it this way?
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cme1201
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Post by cme1201 on May 16, 2011 17:04:25 GMT -5
I haven't had nor needed a CC since '06. I haven't paid any attention to what they are doing intrest rate wise now a days
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deziloooooo
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Post by deziloooooo on May 17, 2011 22:50:00 GMT -5
I haven't had nor needed a CC since '06. I haven't paid any attention to what they are doing intrest rate wise now a days You don't travel, air, car rental or hotels ever...?
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cme1201
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Post by cme1201 on May 18, 2011 6:20:00 GMT -5
I haven't had nor needed a CC since '06. I haven't paid any attention to what they are doing intrest rate wise now a days You don't travel, air, car rental or hotels ever...? All can be done with a debit card tied directly to your checking or savings account, no intrest, no debt, no penalties.
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mmhmm
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Post by mmhmm on May 18, 2011 7:02:39 GMT -5
I don't know what's happening with interest rates on credit cards these days, as I pay mine off monthly. As far as I remember, penalties have always been charged for late payments, but I could be wrong.
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deziloooooo
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Post by deziloooooo on May 18, 2011 14:29:35 GMT -5
You don't travel, air, car rental or hotels ever...? All can be done with a debit card tied directly to your checking or savings account, no interest, no debt, no penalties. There are times I might run up some debt, that it is easier for me to pay some interest on and pay off over a short period of time. I had a Chase card that was a 5.9 % for years, and here , I might take a few months to pay off a travel expense rather then go to savings...but that changed when they went up to 10.9% and I had to cancel the card to protect the balance from going up too, had just vacationed and had about $3000 on it. Had the card for over 20 years, and asked it I could keep the balance at 5.9 % and any new purchases if used at 10.9%. Went to two supervisors , they agreed that it was nuts, don't want to lose a customer like me, one checked it out even farther, special solution, called me back with in a hour, apologized, said nothing they could do, had to lose me, cancel the card to keep the debt at 5.9% till paid off, and agreed , it was idiotic to lose customers like me...but ....so canceled.
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deziloooooo
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Post by deziloooooo on May 18, 2011 14:32:12 GMT -5
I don't know what's happening with interest rates on credit cards these days, as I pay mine off monthly. As far as I remember, penalties have always been charged for late payments, but I could be wrong. allways penalties, now penalties are very high i beleive. I just use debit card, credit, as said, only for something really big, big...usually now a few times a year for traveling...if small will pay it off. Now at 9.9 % lowest I have, would not run a balance either....pay it off.
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cme1201
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Post by cme1201 on May 18, 2011 14:33:37 GMT -5
All can be done with a debit card tied directly to your checking or savings account, no interest, no debt, no penalties. There are times I might run up some debt, that it is easier for me to pay some interest on and pay off over a short period of time. I had a Chase card that was a 5.9 % for years, and here , I might take a few months to pay off a travel expense rather then go to savings...but that changed when they went up to 10.9% and I had to cancel the card to protect the balance from going up too, had just vacationed and had about $3000 on it. Had the card for over 20 years, and asked it I could keep the balance at 5.9 % and any new purchases if used at 10.9%. Went to two supervisors , they agreed that it was nuts, don't want to lose a customer like me, one checked it out even farther, special solution, called me back with in a hour, apologized, said nothing they could do, had to lose me, cancel the card to keep the debt at 5.9% till paid off, and agreed , it was idiotic to lose customers like me...but ....so canceled. That's the difference between you and I, I have a mortgage and that's it, if I really need something (Like the new bedroom suit I bought in feb) I will look for a deal (said BRS 12 piece 699 +++ and 12 months same as cash, took the money placed in a seperate account, draw from it to make the payment). I got out of CC Debit years ago and I refuse to even "play" with them, the deck is stacked and it's not in your favor. If I want a vaca I will save up for it, makes actually taking it a lot easier when I can say I have x to spend and not I have x and that visa over there.
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chiver78
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Post by chiver78 on May 18, 2011 14:38:37 GMT -5
B of A is not a bank I would choose to do business with. They reported they did not raise rates after the legislation, but most banks did this before the changes to be prepared for the changes. Am I wrong in remembering it this way? you are absolutely right. they also slashed available credit on many accounts, including both of mine to about $500 over whatever my balance was at the time. it's no longer an issue for me, but at a time when I was still paying stuff down, it seriously hurt my ratios. I still have those accounts open, but don't use them for anything. I think one is linked to my checking account for overdraft protection, which I don't expect to ever need. (linking it removed a fee)
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deziloooooo
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Post by deziloooooo on May 18, 2011 14:39:56 GMT -5
There are times I might run up some debt, that it is easier for me to pay some interest on and pay off over a short period of time. I had a Chase card that was a 5.9 % for years, and here , I might take a few months to pay off a travel expense rather then go to savings...but that changed when they went up to 10.9% and I had to cancel the card to protect the balance from going up too, had just vacationed and had about $3000 on it. Had the card for over 20 years, and asked it I could keep the balance at 5.9 % and any new purchases if used at 10.9%. Went to two supervisors , they agreed that it was nuts, don't want to lose a customer like me, one checked it out even farther, special solution, called me back with in a hour, apologized, said nothing they could do, had to lose me, cancel the card to keep the debt at 5.9% till paid off, and agreed , it was idiotic to lose customers like me...but ....so canceled. That's the difference between you and I, I have a mortgage and that's it, if I really need something (Like the new bedroom suit I bought in feb) I will look for a deal (said BRS 12 piece 699 +++ and 12 months same as cash, took the money placed in a seperate account, draw from it to make the payment). I got out of CC Debit years ago and I refuse to even "play" with them, the deck is stacked and it's not in your favor. If I want a vaca I will save up for it, makes actually taking it a lot easier when I can say I have x to spend and not I have x and that visa over there. Not that much difference between us, I have all my toys, and the few times I have bought new ones recently, say a Hi Def, computer, did the same no interest deal with the retailer, and as far as vacations, if $ run up, rther then take from savings , accounts, might spread out and have , if reasonable 5.9 %, spread out over a few months to pay off, paying a small fee [interest} for convenience, however, now with no more 5.9 %, but best 9.9, probably this summer when go north, will pay off when bill comes in. It's my call , what I want to do, sometimes convenience is worth a few bucks to me. You are on the right track though ...no credit card debt, for some it's their curse.
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chiver78
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Post by chiver78 on May 18, 2011 14:40:36 GMT -5
All can be done with a debit card tied directly to your checking or savings account, no interest, no debt, no penalties. There are times I might run up some debt, that it is easier for me to pay some interest on and pay off over a short period of time. I had a Chase card that was a 5.9 % for years, and here , I might take a few months to pay off a travel expense rather then go to savings...but that changed when they went up to 10.9% and I had to cancel the card to protect the balance from going up too, had just vacationed and had about $3000 on it. Had the card for over 20 years, and asked it I could keep the balance at 5.9 % and any new purchases if used at 10.9%. Went to two supervisors , they agreed that it was nuts, don't want to lose a customer like me, one checked it out even farther, special solution, called me back with in a hour, apologized, said nothing they could do, had to lose me, cancel the card to keep the debt at 5.9% till paid off, and agreed , it was idiotic to lose customers like me...but ....so canceled. besides this, some places - like gas stations - will put a hold on your account for much more than your actual total, until the transaction finally posts. that's annoying to me, it may not be to you.
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handyman2
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Post by handyman2 on May 18, 2011 15:08:08 GMT -5
If you read the fine print on your credit card statement that caluse has been around for at least a decade or more. Keep in mind that credit agreements always put in big print what you will like about their card and fine print on the items you won't like hoping you won't read it until it is to late.
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Post by Savoir Faire-Demogague in NJ on May 18, 2011 15:17:51 GMT -5
All can be done with a debit card tied directly to your checking or savings account, no intrest, no debt, no penalties.
So you have 10s of 1000s of dead money? I've had my BoA card for a very long time. Literally charges 10s of thousands, never paid a dime in interest nor any sort of penalty. To be honest, I do not even know what the interest rate is on the card. I have about six cards that I use on a rotating basis, numerous times per week.
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cme1201
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Post by cme1201 on May 18, 2011 15:23:01 GMT -5
All can be done with a debit card tied directly to your checking or savings account, no intrest, no debt, no penalties. So you have 10s of 1000s of dead money? I've had my BoA card for a very long time. Literally charges 10s of thousands, never paid a dime in interest nor any sort of penalty. To be honest, I do not even know what the interest rate is on the card. I have about six cards that I use on a rotating basis, numerous times per week. SF, I don't get what you are asking. No I do not have 10's of 1000's of dollars lying around. I do have an EF and I do have savings, no I am not going to spend it on things i want but do not need. I paid off LOT'S of stupid debt, I really don't want the temptation of buy now pay later being older and not really wiser I find it safer to force myself to save for what I want vs. pulling out a piece of plastic. For me it is an easy choice.
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Post by ladylove on May 18, 2011 15:30:07 GMT -5
This is a DIRECT result of Obama banking regulations! Everything he's done has hurt the consumer and he's passed it all by claiming he's helping us!!! Its laughable... well it would be if it didn't hurt so much!!!
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Post by Savoir Faire-Demogague in NJ on May 18, 2011 15:43:56 GMT -5
This is a DIRECT result of Obama banking regulations! Everything he's done has hurt the consumer and he's passed it all by claiming he's helping us!!! Its laughable... well it would be if it didn't hurt so much!!!
Everyone agrees the prez is way in over his head, but I do think it was really Congress where the blame should go. Just my observation.
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Post by Savoir Faire-Demogague in NJ on May 18, 2011 15:45:46 GMT -5
I don't get what you are asking.
Holds are put on your balances. When you rent a car, your CC or debit card puts more than a hold for the couple hundred dollars you will be charging. I'd rather use other people's money rather than tie up my own.
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pepper112765
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Post by pepper112765 on May 18, 2011 15:52:14 GMT -5
There are times I might run up some debt, that it is easier for me to pay some interest on and pay off over a short period of time. I had a Chase card that was a 5.9 % for years, and here , I might take a few months to pay off a travel expense rather then go to savings...but that changed when they went up to 10.9% and I had to cancel the card to protect the balance from going up too, had just vacationed and had about $3000 on it. Had the card for over 20 years, and asked it I could keep the balance at 5.9 % and any new purchases if used at 10.9%. Went to two supervisors , they agreed that it was nuts, don't want to lose a customer like me, one checked it out even farther, special solution, called me back with in a hour, apologized, said nothing they could do, had to lose me, cancel the card to keep the debt at 5.9% till paid off, and agreed , it was idiotic to lose customers like me...but ....so canceled. besides this, some places - like gas stations - will put a hold on your account for much more than your actual total, until the transaction finally posts. that's annoying to me, it may not be to you. Every gas station I frequent takes $1.00 until the full charge goes through.
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Post by ladylove on May 18, 2011 15:52:51 GMT -5
This is a DIRECT result of Obama banking regulations! Everything he's done has hurt the consumer and he's passed it all by claiming he's helping us!!! Its laughable... well it would be if it didn't hurt so much!!! Everyone agrees the prez is way in over his head, but I do think it was really Congress where the blame should go. Just my observation. Yes congress the democrat congress and Obama who pushed through regulation that was supposed to protect consumers and prevent the government from having to bail out the banks again... hence the slush fund increased fees and taxes and new rules and regulations.
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Post by ty on May 18, 2011 15:55:53 GMT -5
I don't know what's happening with interest rates on credit cards these days, as I pay mine off monthly. As far as I remember, penalties have always been charged for late payments, but I could be wrong. I was doing that with my BofA card until they sent me a notice telling me that they were going to charge me a $59 dollar fee for having their card. I called them and canceled my card. Now that a lot of people have canceled their cards with BofA, they dropped the $59 dollar fee. They sent me a new card and asking me to come back. I cut it up and mailed it back to them with a letter that if they want me back as a card holder, then you need to pay me $59 a year for my service.
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deziloooooo
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Post by deziloooooo on May 18, 2011 23:52:11 GMT -5
This is a DIRECT result of Obama banking regulations! Everything he's done has hurt the consumer and he's passed it all by claiming he's helping us!!! Its laughable... well it would be if it didn't hurt so much!!! Everyone agrees the prez is way in over his head, but I do think it was really Congress where the blame should go. Just my observation. You just don't get it , here on this zone, we blame the PONTUS for everything, and if it is a slow day, not much happening..we make it up.
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Deleted
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Post by Deleted on May 19, 2011 8:36:21 GMT -5
They sent me a new card and asking me to come back. I cut it up and mailed it back to them with a letter that if they want me back as a card holder, then you need to pay me $59 a year for my service.
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Post by bubblyandblue on May 19, 2011 9:38:01 GMT -5
Well, I would like to see the justification for the fee(s). With todays technology you would think that any fee charged is based on a transactional cost of a few mili-pennies. Is there any law regarding price gouging or, because they are "service fees" they can gouge all they want. Frankly, I don't consider it a service to get bent over my these guys.
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ugonow
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Post by ugonow on May 19, 2011 9:57:08 GMT -5
When my bank started charging to count my coins, I asked if they would just take my word for what it was and they didn't go for it.... hey that was a long time ago...it was Bushhhhhh that did it...Oh Bushhh caused the transaction fee too, for using a teller more than twice a month [that lasted about 6 months] .This fee bit is nothing new, imo.
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Post by bubblyandblue on May 19, 2011 10:59:35 GMT -5
It's amazing that when the automated teller came out, the banks were saying what a grand thing it was... it would lower the cost of services by eliminating the teller and, those cost savings would be passed on to the consumer - that worked out well for the consumer didn't it? It's the old George Carlin line - the big print giveth, while the small print taketh away.
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deziloooooo
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Post by deziloooooo on May 19, 2011 11:03:59 GMT -5
When my bank started charging to count my coins, I asked if they would just take my word for what it was and they didn't go for it.... hey that was a long time ago...it was Bushhhhhh that did it...Oh Bushhh caused the transaction fee too, for using a teller more than twice a month [that lasted about 6 months] .This fee bit is nothing new, imo. My bank, bank atlantic has a coin counter in the lobby..Publics, supermarket too. Free, so far.
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