Bank of America Credit Card Scam 2

I little while back I wrote about a B of A credit card minimum finance charge scam.

Recall, they sent a notice out saying they would start charging a $1.50 minimum finance charge, UNLESS they received a written request to reject the charge. Recall that I heard about this from a friend who also has a pseudo liberal Working Assets Visa. At the time I wrote that blog entry, I hadn't even found the small print describing this fee, which I thought was buried in the Privacy Statement.

Well, I found the notification of the finance charge, and Bank of America has a reason for assessing this finance charge:

We added a Minimum Finance Charge to your account primarily due to a change in our business practices.

Well NO KIDDING. They've changed their business practices to ... collect a finance charge.

Bank of America has also changed its Monthly Minimum Payment. Before, there was a cap on the minimum payment required each month. Now, the minimum payment is simply a fixed percentage of the outstanding balance. OK, I can live with that. But, again, the reason they give is a bit pathetic:

As a result of federal guidance, we are changing the minimum payment calculation on your account.

This surely is intended to make it sound like the government is forcing B of A remove the cap on the minimum required monthly payment. However, the reality is probably more like the following. Credit card industry lobbyists bought off Congress to "modernize" the credit card laws and create more "flexibility" so they could compete in the global economy. Then, the credit card regulators were lobbied to change the regulations to remove the cap on the minimum payment. In response, the regulators revised their guidance, allowing credit card companies to remove the cap on the minimum payment. This might even be a part of the bankruptcy reform law, in which the credit card holders receive a favor from big brother, designed to help them keep up with paying down their debt and avoid bankruptcy.

A year or so later, the credit card company, B of A in this case, turns around and tells the public, "As a result of federal guidance," we're going to add a little more pain to your life.

Surely, if the people were in charge of this country, they wouldn't let this kind of thing happen.

How to Reject the Finance Charge:

By May 1, 2007

WRITE TO:
B of A
PO Box 15088
Wilmington, DE 19850

Identify yourself and your card number

Say: "I reject the minimum finance charge of $1.50."

Bank of America Privacy Policy Credit Card Scam

If you're like me, you receive "Privacy Policy" statements from various corporations, and you either file them or toss them. Recently, Bank of America hid a little gem in their Bank of America Privacy Policy of for Consumers 2007.

How do I know? Well, as I write this, it's NOT because I've found it in the small type. Instead, a friend who also has a Working Assets Visa card told me. "You need to send a letter to Working Assets (AKA Bank of America) to opt-out of a $1.50/month finance charge by May 1, 2007." It's a legalized scam.

Yes, that bastion of liberal innovation, Working Assets, once affiliated with Fleet Credit Card Services, is now serviced by FIA Card Services, National Association (Bank of America). Working Assets is now party to this legalized scam.

The scam is simple. Bank of America is allowed by the U.S. Congress to impose a $1.50 monthly finance charge, with the presumed Democrat compromise language that the "consumer" has to be given the option of saying "No, I don't want to pay." Gee thanks. Great opposition party, eh?

So, who pays? People who don't read the fine print. I blame Working Assets.

Contact Working Assets. Tell them that you blame them too.

Side Note 1: Bank of America started the credit card concept, according to Wikipedia.

Side Note 2: A Bank of America branch in Santa Barbara (Isla Vista) was burned to the ground April 18, 1970. Kevin Moran was shot and killed by Santa Barbara City Police after working put out the fire.

Side Note 3: At least the B of A Privacy Policy write the USA PATRIOT Act correctly (all capital letters to indicate it is an acronym for Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism).

Side Note 4: How to Reject the Finance Charge:
WRITE TO:
B of A
PO Box 15088
Wilmington, DE 19850

Identify yourself and your card number

Say: "I reject the minimum finance charge of $1.50."
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