Wednesday, February 27, 2008

B of A increases Credit Card Interest Rates

GOOD DAY FOR: Burning plastic, after Bank of America started notifying credit card holders with good credit and no late payments that their interest rates will more than double, to as high as 28 percent, for no apparent reason. "Either Bank of America has more financial troubles than it is willing to admit or it has a level of institutional arrogance that is unacceptable," said Credit-dot-com CEO Adam Levin.

My take
Their profits should be good & this is probably trying to extract more $$$ from people not paying down their cards when they have the ability to do so or they are trying to contain their exposure to people who have balances so high, relative to their income, that they warrant more concern.

Either way, looks like they might get some political heat based on the article and December Congressional hearings.

Dan Ross

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