Why all the fuss about Bank of America's jacked-up interest rates?

Updated

The big fuss about Bank of America credit card interest rates has just gotten worse. First, we heard from those whose credit scores had fallen, because Bank of America noticed and raised their rates. It seemed unfair, especially when people who were completely current on their payments with Bank of America were penalized. They reasoned that they shouldn't have an interest rate increase because of other credit activity. They lost that battle based upon language in their credit card agreement.

But now the flap has gotten worse, as Bank of America has raised rates for customers who don't even appear to have any new adverse credit information. How did they do it? Simple. They told customers they would raise their rates, and they did.

Are you in the bad habit of throwing out all those little papers that come with your credit card statement? Did you quickly discard a letter from your credit card company, thinking it was more standard fine print? I recommend you take a good look at those, because that's how these customers got stung.

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