She might catch a few flies. Would work better with honey, but if that stunt was pulled on me, I don't think I could be sweet either.

Looks like its time to find a new business card. I was a little irked when my MBNA card became a BoA card last month-- and I didn't even notice this!

Unacceptable. Anybody have any good ideas for a business credit card with rewards?

This is why I loathe institutionalized usury.

I received an almost identical notice, though from FIA Card Services, the company that recently took over my card from MBNA. A lot of the text is the same, the due date for rejection is the same, and the PO box is the same.

Maybe this sounds like a dumb question, but . . . don't you always get a finance charge when you don't pay your balance in full every month? Isn't this just saying that if you have a really, really low balance so that the finance charge would be, say, one dollar, this would impose a minimum of $1.50? I must be missing something major here, because that doesn't seem like a big deal to me.

I have been riding on a $1000 maxed out credit card that I haven't been able to pay down. I know it's a bad thing...

I got the card through my local bank. My local bank then sold its credit card arm to MBNA. MBNA was then bought by BoA. Over the last 2 years, I've seen me get hit with overdraft fees twice due to the finance charges. I have seen my minimum monthly payment double, and my APR skyrocket. When I got this letter, I kind of shrugged it off.. Because I feared that if I rejected the finance charge, they would put my CC into default and I wouldn't have a way to pay it off.

I wish I had your e-mailer's courage.

I've seen minimum finance charges on some cards in the $2-3 range (if not higher).

None of mine, luckily...

That's my new client...

Don't hate me.

I do not see it in this letter from MBNA, but I have seen letters in the past that when you reject a change to the contract you are actually rejecting the terms of the new contract in its entirety.

It is similar to that adverse/material change scenario that people have been using to get out of cell-phone contracts. Except it is being brought to your attention by the company, instead of you bringing it up with the company.

I would call customer service to see what the case is before doing this. That is, if you care about them cancelling the card. It might be touchy if you're carrying a balance and then have to pay it off in full when the account closes.

What in the living hell is the "IJ110228668-51526-1158-2-DM11-N-5P-E-0-MB-05-01-8- -00-MB-1X-.00-1X.00--1X-1X-0-2-2-22-.00-1.00-15.00-2-3-1-1X- -C-Y-1X-0- -0- -2-8AGU-9597-329597" code printed at the bottom of the letter? That just screams "monolithic corporation".

I got this letter myself, and was equally angered by it. I went through the process to reject the institution of the minimum finance charge. I have paid off my balance in full every month since I got my card, and have enjoyed using MBNA's and then BoA's money for free for a few days. I guess now they are trying to get me back.

I'd like to move on from BoA, as I have not been impressed with their service for the credit cards or their banking products. Still, I am very much attached to my Working Assets credit card, which benefits progressive causes. Hmmm, what to do...

Screw 'em playing the credit card arbitrage game and then donate the money to progressive causes myself!

@timmus

That's your entire permanent record encoded in a format that only witch doctors can read, kind of like telling the future by reading chicken bones.

This should not be too troublesome for most people. You would need a very low balance to have your finance charge be less than this.

It is, however, wrong. A credit card is, after all, a credit card and meant to be a flexible loan from the bank at the agreed rate and borrowers shouldn't be penalized for keeping a low (or having a nearly paid off) balance. It is just a case of the bank trying to up their fees a bit. They make more money on the high balances because more of the bank's money is at risk and don't deserve a bonus because you don't tie up their assets.

Banks repeatedly say that it costs them to process things when it does not. Back in the old days of people doing the work, there was some justification for this but in the computer universe, it doesn't cost them anymore to process a low balance than a high one.

It is much like the overdraft charges of $25-$35 that many banks charge, claiming that it costs them to not pay the check. The odds are very good that no human being was involved at any point in bouncing a check, the majority of their costs coming from answering questions from the people they charged.

I challenge any bank to show me how it costs them $25 to bounce a check. If it does, they really need to be in a different business cause they don't know how to handle checking accounts efficiently.

Got that letter. I was afraid it was a phishing scheme. Guess I have to go do battle now.

Assuming you had a balance where the periodic finance charge was less the $1.50, if your APR is 15%, that means you'd have to have (roughly) a balance of $100 or less to drop below the minimum periodic finance charge. If I only owed $100 on a card, I'd just pay it off.

On the other hand, this would really suck, I suppose, if you bought 2 iTunes songs for $1.98 and then got socked for $1.50 in minimum finance charges. It used to be that if you paid your monthly balance in full, they wouldn't charge you any periodic finance charges, but I think disappeared a long time ago too.

It certainly seems like a ploy to either make you carry a larger balance, or weed out those unprofitable souls who pay their bills on time (or at least make some money from them). Still, in the grand scheme of things, the loss of that $1.50 means not being able to afford a half-gallon of gasoline, or maybe a (small) coffee.

*Engage sarcasm mode*

Wait...a credit card company trying to screw somebody over..give me a second to looked surprised...how about now? Now? :P

Damn it....I'm going to talk to my friend who's a personal banker at BOA...this total crap...

homerjay....

Why don't you just get a credit union membership and get a credit card through them? I have been a member of a credit union for 12 years and when I finally looked and saw what bank were charging for "usage" fees and intrests rates, I just about pissed my pants from laughing so hard. Really my savings account alone is paying 4.85% intrest and a bonus at the end of the year. And on theri credit card, I don't even have the privledge of having to pay a fee to pay online!!! What a concept!

I got one of these letters but didn't open it until seeing this post. The outside of the envelope says "ANNUAL PRIVACY NOTICE AND IMPORTANT AMENDMENTS ENCLOSED", and I stopped reading after "PRIVACY NOTICE" thinking it wasn't going to be worth my time.

Anyway, if it's a company saying we're going to charge you $1.50 unless you do something, it's absurd. And exactly the type of thing the Consumerist is here for.

Stick it to the man, send in the letter. Even if you wouldn't ever pay it.

"This is primarily due to a change in our business practices."

That's my favorite part.

Continued, in my mind:

"Specifically, we have decided to bend you even farther over and fuck you rightly. Because we can. Higher standards (and fees) and all that. Enjoy."

With my card (Citi), every time they offer the opt-out, reject-these-terms, it actually CANCELS your account after the expiration of the card. Not particularly cool, that, seeing as I like to keep lines of credit open for my credit report.

This truly sucks. I don't have any personal experience with BoA (and from the looks of this, I'm glad that I don't) - but I've always had good dealings with MBNA.

When I first moved to the US, I had zero credit and an employee at MBNA spent quite some time explaining the US credit system to me. They gave me my first credit card and my first loan - and they did not charge extra fees because I paid off my credit card in full every month.

When I moved to Canada, MBNA made sure that my credit information was accessible and that I knew to push the banking/lending industry up here to use my US information. That way I didn't have to start over, credit-wise.

It's truly sad that people who try to be fiscally responsible end up being punished.

Here's a good question:

Does this only apply to former MBNA card holders, or to every credit card BoA offers?

I received one of these a month or so ago and promptly sent in the "fuck no" letter. I'm shopping around for a new card too. It's too bad since I've had that card for a long time.

I knew this merger would hurt when they kicked it off by stealing, namely from U2. However, this is less funny than that was.

@homerjay:

I've always used AmEx for my business cards. If the company is paying the bills every month, there's no reason to carry a balance. Best rewards in the business, i think...

Some of the commenters are missing something important, but to be fair, it isn't in my letter: That minimum finance charge means that you now have to make payments on cards with a zero balance. One of my two cards is empty, "for emergencies only"; this change would mean I have to start paying off the $1.50 (plus interest!) every month, or start accruing a balance!!

So basically my no-annual-fee card just got a MONTHLY fee attached to it. How nice.

Damn right I'm sending the letter. ;)

My BoA card (which was MBNA) just sent me an additional letter informing me that they were also going to change the way my APR was calculated. It is currently around 6.99, and it will now be a base Variable APR of 8.something, + the margin which is usually at least 7%. That = 15%, or more than double my current APR. The reason they are doing this, I am told, is that I transferred a balance from another credit card (which had a higher rate) and have thus far not paid down the balance very much. This was about two months ago. I have never missed a payment on any card or loan, in seven years of having credit, and they are raising my rate, because of the fact that I am giving them more money a month in interest charges, which means I should give them more money a month in interest charges. It's a good thing I don't have a degree in philosophy or my head would explode...oh wait....*

(I rejected the changes to my APR, which, in this case, means I can no longer use the card. If I do so after May 1st, I am agreeing to the changes, despite written notification to the contrary.*)

*- Pop.

You are misreading it. The minimum finance charge only applies if your balance is not paid off in full.

At least her letter was written in an adult-like manner. The dollar signs in "ass" scream maturity. I'm sure BoA is very concerned.

I'll spin this and say that BoA is performing a public service. You shouldn't have CC debt. If you don't want to pay a penalty, pay it off. Or...don't use a credit card! Pay for things with money you actually have! Novel, I know.

WOW!

There are a BUNCH of people on here freaking out about this change. I am not aware that any of these are new. BOA isn't breaking any new ground, although they may be pushing the envelope.

1. emilayohead is right. If you carry a balance, you will be assessed finance charges, and have been for decades.

2. Mary Marsala with Fries is INCORRECT. If you actually read the letter it states "You will be assessed a minimum finance charge in each billing cycle in which your total Periodic Rate Finance Charges are less than the minimum amount specified below, but more than zero." This means, no balance = no minimum finance charge.

I currently work in the service industry but I worked for a credit card company about 6 years ago. A few years before I left, they instituted a minimum finance charge of $.50 on any unpaid balance, increase late fees and over limit fees to $15, etc.

ALWAYS read your statements and notices, even if it starts with "ANNUAL PRIVACY NOTICE..." and don't carry a balance if you can avoid it. If you pay it off, you don't get finance charges, late fees or over limit fees PLUS the credit card company will HATE you because you are a credit card deadbeat. Always think for yourselves!

I got this letter, and decided I would not reject the change. Rejecting the change would force close the account at the expiration of the current card. If anyone knows of another card with 5.9% fixed APR, plus rewards, please let me know and I'll be happy to switch to that one.

Yes, oh great guru Billy. We should all not have credit card debt, and the credit card companies would all just roll over and go out of business if only we hearkened to your wise words.

/STFU
//GBTW

that wasn't the only difference in my ToS. my fixed 11.99% card SINCE 1997 just became a variable based on some index + 11.29835532 (or whatever), so now i'm sitting pretty at 19.99% variable.

thanks BoA!

i'll just pay that card off & let it sit there. i used to use it b/c it was a rewards card for my university, but f/i. i'll send them a check & use it as a write-off.

@homerjay: Advanta
http://www.creditcardguide.com/advanta.html?gclid=CNiCvpXw...

@Mr. Gunn:

I didn't say i wanted them to go out of business. You seem to be encouraging cc debt, yes? Sounds like a great idea. Car payments are also smart, you should always finance depreciating assets. I have an ARM i'd like sell you for your next home too.

For God's sake if you can't manage to spend less than you make every month then maybe you aren't ready for something as advanced as credit.

@Athenor:
"I have been riding on a $1000 maxed out credit card that I haven't been able to pay down. I know it's a bad thing..."

Perhaps you should look into a loan through Prosper.com. You could probably get a lower APR and pay off that card in full.

GAH. I have a Working Assets credit card that was on MBNA (not exactly a treasure trove of good customer service/consumer practices either), which was purchased by BOA. The first thing BOA did was switch my account due date to the beginning of the month instead of the end of the month, resulting in a late payment. They were good about it, thank goodness; reversed the late charge and changed the due date after I complained. But what about those other shmucks out there who just pay their bills automatically? Why not just keep folks' original payment date?

The ONLY reason I'm keeping this card is because BOA hosts my Working Assets (www.wald.org) credit card... every time you use the card, $.10 goes to a progressive nonprofit, and you even get to vote each year which orgs will get funding.

Great org, Working Assets. But why is their credit card managed by such a crappy company?

Oops, it's www.wald.com. Apologies.

I thought everyone already knew that BoA sucked. Hmm, go figure. Well consider this your notice- they're terrible.

The solution for idiocy like this is C-R-E-D-I-T U-N-I-O-N.

@Henri: You're right, Henri. I think the last time MPIRG took on this issue (about ten years ago), it cost the bank about $6 to run the check through again. Something like 90% of the time it went through on the second try. Fees are becoming a primary way for banks to increase profits.

I was sooo angry to see that my NHL credit card (GO OILERS) got bought by BOA.

I only had a $9 balance because I left my bank card at home one day and needed gas, and I wanted to pay the stupid thing off right away, so I ate the ridiculous $10 charge to submit a phone payment. A rip, but hey, the damn thing's paid off and off my mind, right?

THEY PUT THE $10 ON MY NEXT BILL SO IT WAS HIGHER THAN IF I HADNT PAID IT AT ALL.

I hate you BOA. So. Much.

Nice pic. Betsssssy is a babe!

Rejecting the changes means canceling the card right? I think people have said that already. Well, I haven't been happy with MBNA since they blamed my Alumni Association for not being able to lower my interest rate below 15.99%. Since then I transferred my balances and haven't used the card in years. I don't cancel it b/c I have had it for over 13 years and my credit limit is $24,000. Canceling it would be a blow to my credit rating. So I keep it and never let them make money off of me. I didn't think I could dislike a credit card company more than I disliked MBNA.

How I got a limit of over $20,000? When I carried a balance back in college they increased my limit by $500 or more a month so I would never stop using their card. Sure, I was being reckless with my credit and really I am the only one to blame but the way they just kept giving the drug to the addict a little bit at a time makes me angry.

This article makes me even more glad I cancelled my BoA (formerly an MBNA) card last month. I had to call customer service five times that month to get my bill straightened out. I won't miss them. I do, however, miss the Garfield card that I originally had (it was the reason I opened the MBNA account at 19).

For the folks with Working Assets, the reasons to have your card may be going away - the Linux Fund had a similar setup, but post-buyout that's going away. See http://community.linux.com/community/07/04/02/1356254.shtm... for a little bit more information

@silverlining: "The first thing BOA did was switch my account due date to the beginning of the month instead of the end of the month, resulting in a late payment."

Oh my God, me too! I screamed bloody murder and mayhem, and after quite some argument, they agreed to move my payment date to the 5th of the month (seriously, what kind of crap-ass credit card company won't let you pick your own payment date?). It was like that for three months, then they moved it back to the prior date with no notice!

Since BofA acquired MBNA, we've had our terms changed three times in weasely ways. They have thrown me off the account (my husband is the primary user; I've always been a full joint user) so that I can no longer deal with billing errors or anything else, which is ridiculous because I manage the money in this house and my husband has better things to do than spend an hour on the phone with BofA, thank you very much. He called and spent the aforementioned hour. They claimed to put me back on, then booted me again. We can no longer access our account on line. They claimed to fix it. It was not fixed.

Two weeks ago a RANDOM-ASS card on a TOTALLY NEW AND SEPARATE ACCOUNT arrived as a "replacement" for a card they claimed I already own. Just me. Not my husband. I have NEVER had an account with BofA (I worked there. I know better.) and GOD KNOWS they keep insisting I'm not on my husband's account. Now I"m trying to figure out if I"m an identity theft victim but customer service won't talk to me.

We are cashing out our points (which, of course, we can't do online and they won't let us do on the phone because of spurious reasons X, Y, and Z) and DUMPING this card, rewards or no rewards. I'm SO FURIOUS at BofA, and I'm equally furious at MBNA for being bought by them.

I had been an MBNA customer for about 13 years, and had a nice high credit limit (upper 20k's), and all sorts of freebie promo benefits for L.L. Bean. I loved it. Then BoA bought them out, and it all went to hell. The phone service was PayPal-quality abysmal, they tricked out the website and made logging into my account much too complicated, and then the kicker, they added that $1.50 charge- and would only waive it if I mailed them a letter. They won't waive it for old customers over the phone. How sad.

I hope LL Bean switches their branded card to another company.

My MBNA card was also acquired by BoA with similarly unfavourable terms. Other than 1-2 recurring monthly charges, I wasn't using it nor carrying a balance on it anyway. I've always paid my balances in full, so these changes don't affect me, but I still don't plan on using it either. BoA probably doesn't want my business anyway.

am i missing something here? aren't you always charged a finance charge if you carry a balance? it does say if you pay your balance in full, there is no charge.

i agree, on principal, that this is a greedy change in policy. but if your balance is low enough that the $1.50 would kick in, vs. the calculated percentage rate, the difference would be pretty minimal, right?

as for the letter, saying things like 'Awww, poor you' and 'on a more personal note, kiss my a$$' is just childish. if you want to be taken seriously, you need to talk like a grown-up.

Does this minimum apply to BoA credit cards that they issue to illegal aliens?