Starting June 25, Bank of America will begin charging penalty interest rates of nearly 30% on new purchases by customers who miss payments.
Unlike a wholesale interest rate increase, borrowers would be charged the penalty rate only on new purchases after the rate is changed, and a customer will receive 45 days notice of a penalty rate being placed on their account.
A rep for BofA tells Reuters that one missed payment will not automatically trigger the penalty rate, and that accounts will be reviewed before being hit with the penalty. Considering the bank’s track record on reviewing mortgage payments, this may not be much consolation to some consumers.
Earlier this year, BofA announced it will be charging a $59 annual fee for credit card holders with risk factors like having a low FICO score or a history of late payments.
BofA to hike interest rates after late credit card payments [Chicago Breaking Business]