Bank of America credit cards getting higher penalty rate
Bank of America began notifying cardholders of the change in April. The company said that starting June 25, a single late payment could result in the higher penalty rates.
A late payment won't automatically trigger a higher rate. But the bank says the account will be flagged for review and the rate could be hiked depending on the cardholder's payment track record.
If the rate is hiked, customers will be notified at least 45 days in advance. The penalty rate will then only apply to new purchases.
Customers will also have to pay a late fee of up to $25. The fee can go as high as $35 if there's a second violation in a six month period.
The bank said it will review any account that faced a rate hike within six months to assess whether the original rate should be restored.
It's not unusual for penalty rates to be well over 20%. But the change is significant because Bank of America got rid of its penalty rates last year to comply with new credit card regulations. The new rules prohibit banks from raising the rate on existing balances unless an account is 60 days past due.
Bank of America's penalty rate had previously applied to existing balances as well as new purchases.
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Bank Of America Payments - News
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Bank of America Online Banking | Financial Planning & Management
Bank of America online banking is available to any customer who is currently doing business with the bank. Participation in Bank of America online banking program free and easy to manage.
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Homeowner Says Bank Of America Foreclosed On Her After Advising Her To Miss Payments 
Leaving Bank of America. Actually. BofA Foreclosed On Her After Advising Her To Miss Payments - The Consumerist: 
Homeowner Says Bank Of America Foreclosed On Her After Advising Her To Miss Payments 
Gerald Wolfe says Homeowner Says Bank Of America Foreclosed On Her After Advising Her To Miss Payments 
(Source: Consumerist) - A woman says she lost her home to Bank of America by following its advice to her that sh...