Mad About Credit Card Companies
Over the Limit? The Interest Doubles And Pay a Penalty
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Lina Alathari of McLean says she has had a Bank of America credit card for several years and is never late making payments. The government psychologist says she recently bought some big-ticket furniture items that -- including finance charges -- put her over her $6,000 limit.
The bank imposed an over-limit penalty fee and raised her interest rate of about 15 percent to more than double that.
"I was livid," she says.
When she called to complain, a representative said the bank had to wait six months before changing the rate back. She says that she immediately closed the account and paid it off but that the bank still sent a bill for interest charges of $57.
"At that point I was so eager to be done with them, I just paid it," she says. "And they were rude about it on top of it."
Bank of America spokeswoman Betsy Weinberger said that the bank won't comment on specific customers but that its policy is to raise interest rates only if someone misses a payment or goes over the limit twice in a 12-month period. She said the bank sends e-mail alerts and other notices to remind cardholders of the policy.
"Like all credit card companies, Bank of America prices are based on customers' risks," Weinberger said.
