Bank Of America To Raise Penalty Interest Rates
Bank of America credit cardholders could see higher interest rates in the coming months, as the company will introduce a penalty fee of nearly 30 percent.
Depending on the cardholders' credit history, such as how much debt they are in, the rate can vary, according to CNNMoney. A spokeswoman for the bank said one late payment will not automatically trigger the fee.
Cardholders will have to be notified by the bank that a policy change is in place at least 45 days in advance, the news source reported. The Credit Card Accountability, Responsibility and Disclosure Act of 2009 restricted lenders from raising rates on established accounts.
Despite this, the fee is very high, and consumers who use the bank should be more cautious, as credit card debt could snowball with a few missed payments. Cardholders must act responsibly with their cards, as letting their bills slip could ruin their credit scores.
Chase and Citi already have penalties that can reach as high as 29.99 percent, the news source added.