How to Reject Your Bank of America Rate Increase

Note: BoA has now started including a telephone number in their rate increase letters where you can call and easily reject the rate increase via an automated system. A fresh batch of rate increase letters have been mailed out this week. I do not have this #, as I threw mine away after I rejected the increase, but hopefully someone will have it. You must never use your card again (oh NoEs!) or the rate will increase even on past purchases. Cut the card up (your credit score will go down if you close the acct)and pay off the balance and be done with them ! You can also just call BoA, if the time window they gave you to reject the rate increase has not passed. I worry about what this means for customers like me who are getting ready to have our mortgages passed from Countrywide to BoA. :scared:

http://www.creditbloggers.com/2008/02/how-to-reject-y.html

Those of you who received rate increase notices from Bank of America or other banks recently, may have noticed something about being able to reject the rate change in the fine print. How does a rate increase rejection work? What do you have to do to reject the APR change? What's the catch? Let's break it down:

What does it say? In the Bank of America rate increase letter it states the following,

You do not have to accept this amendment. The steps you must take to reject this amendment are described below. You must act promptly to reject this amendment.
...
We must receive your written response by February 19, 2008.

What does this mean? You can write the bank within a certain amount of time to reject the increase in your credit card rates. This will not close your account or cause a negative record to appear on your credit report.

What's the catch? Rejecting the rate increase is only good until you use the card. Using the card after the stated date (in my example, Feb 19th) for a purchase is considered an "acceptance" of the new rate. Beware of automated charges or subscriptions services that could undo your rejection.

Where do you send the rejection? Rejections have to be received by the bank in writing at a specific address (not where you send your bill) before a specified date (not according to the postmark but the date they say they get the letter). For Bank of America customers, the address is

FIA Card Services, N.A.
P.O. Box 15565
Wilmington, DE 19850

Include your credit card number and full name along with your rejection request. You can't choose which term changes to reject. If you want to reject one, you have to reject them all.

???

letters that go out, there is a different "deadline". For example, if you got your letter this week, it is NOT too late to reject. Sorry about the confusion !

so, tearing up the card, etc. is of no consequence to me...:-)

on a side note, i rejected a Chase increase over 2 months ago, and they haven't cut off the account...i think they are just making it possible for me to use the card and trigger the higher rate...

she's great about working the rates on her credit cards. She moves balances onto new or existing cards with lower rates and minimizes our overall rates to really low average rates. You always have the right to reject a rate increase. As you say, you just let them know then don't use the card again. Of course these are unprecedented times, but in the past, when a rate would go up, my wife would just move balances onto new cards with low introductory rates and keep moving them. Eventually the original card that raised the rate will send you a letter with an introductory rate saying if you move your balances back to them you'll get this new ridiculously low "preferred customer rate" or some other such marketing bullshit. Do it and keep your options open everywhere to move balances. It takes a lot of vigilance and work, but it's well worth it.