Recently Bank of America sent me a promotional offer to transfer my higher interest credit cards to their company at a special 0% APR. Of course I jumped at the deal and decided to transfer a balance from another card with a higher interest rate. Who wouldn't? But now magically because of the fine print, I am stuck with all kinds of fees and a higher 7.9% interest rate. Read how they did it...
(PRWEB) August 23, 2005 -- Recently Bank of America sent me a promotional offer to transfer my higher interest credit cards to their company at a special 0% APR. Of course I jumped at the deal and decided to transfer a balance from another card with a higher interest rate. Who wouldn't?
View the actual advertisement I received in the mail here:
Front of offer:
http://www.2koncepts.com/bofa/0APR-FRONT.tif
Back of offer:
http://www.2koncepts.com/bofa/0APR-BACK.tif
Now, here is exacly what I did and how they took advantage of me and probably everyone else that responded to this same ad.
My credit balance was $0 and my credit limit on the Bank of America card was $3,500 and I decided to transfer the whole $3,500 balance from another high interest credit card. Sounds good right? Well, when I received my first bill in the mail from Bank of America my new balance was $3,545.48 a portion of which was for an OVER THE LIMIT FEE, so I immediately called Bank of America and they claimed it was because the transfer was subject to a 4% Cash Advance Fee, but wasnt I doing a Balance Transfer? Now here is the kicker they also proceeded to tell me that since I am now over the limit, my credit card is no longer eligible for the 0% interest rate and my new interest rate is 7.9%.
So, basically I thought that I was going to have a credit card with $3,500 owed and a promotional interest rate of 0%, but now I have a credit card with $3,545.48 balance and an interest rate of 7.9% and Bank of America absolutely would not do anything about it. All they could say is that I should have read the fine print; which I did. In my opinion, this is a total scam by Bank of America.
Please read the offer for yourself and see if I am crazy or even stupid and if you would have done the same thing I did. My main problem with the whole issue is their use of verbiage in one paragraph to the next. In the first paragraph they clearly call it a balance transfer, which is what we did, then in the next short paragraph they changed the word to cash advance fee, which I didn't think applied to me, because I was doing a balance transfer. My understanding and probably everyone else's idea, including a jury's, of a cash advance is when you go to a bank and take cash from a credit card. Obviously they do this on purpose so people will make the same exact mistake that I did. Also, from talking to one of Bank or America's own customer service reps, I was told that they get these kinds of calls all of the time, so it sounds like there are probably lot's of other upset people having this same problem.
Now I ask, do any of you think this is ethical or even legal?
Here is exactly what the offer stated in the fine print if you cannot view the scanned items above:
The Annual Percentage Rate for Balance Transfers made prior to August 31, 2005 and for balances created using the enclosed promotional convenience checks, is a fixed rate of 0% (0.0% corresponding Daily Periodic Rate) (Promotional Rate) through 12/10/05 (Promotional Period). Thereafter, a fixed rate of 7.9% (0.02165% corresponding Daily Periodic Rate) will apply to these balances until paid in full. If at any time during the Promotional Period we do not receive at least the Minimum Payment Due, you exceed your Credit Limit, or you close your account, your Promotional Rate will terminate and thereafter, any remaining unpaid balances will accrue interest at your standard contract Purchase Rate. Please note that, unless you are a Financial Rewards member, you will not earn Rewards credit, miles, points toward free travel or merchandise, nor will you qualify for charitable donations from the use of these checks as stated in your Cardholder Agreement.
The Cash Advance Fee is 4% with a $5 minimum and $50 maximum per transfer or check used. This fee will post to your account as a cash advance fee and receive a cash advance rate.
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