Bank of America review: fixed to variable interest rate 59

I've been posting on another board regarding this. I, too, think it is criminal. My original loan was with MBNA, so I didn't SIGN anything with Bank of America.

I have contacted two Senators, a Congressman, umpteen people at Bank of America including Ken Lewis, the Attorney General, Federal Reserve Consumer Help, the House Banking Committee, and the OCC. I did most of this today, and I'm willing to do it all again tomorrow and the next day and the next until someone hears this.

If enough of us do this, they WILL HAVE NO CHOICE but to hear us!

David - I may be mistaken but maybe it would be better for you to be at the current APR plus prime? Again, I could totally be wrong but you are paying extremly high interest on this loan that I wonder if it would be less for you. I'm confused on the terms somewhat but it would be worth checking into.

I just had the exact same thing happen to me! Is this legal?

Same here, I'm not paying another cent until I get a letter confirming that I'll be on a fixed rate. Some argue that it will screw up my credit score. But what's the point of keeping good credit if banks screw you like this?

Hi, I also got scammed by B of A. I was wondering if anyone has a copy of the original solicitation that they would mind emailing to me. Mine said that the rate was non-variable on it. It also said that the interest rate would not change. I am not sure if everyone got the same one, but I am positive of the words "non-variable" on mine. If you have it, please let me know. I want to include it in my complaint. Unfortunately we moved twice since I got the loan and I can't find mine... Thanks and keep up the good fight!

Sonya

Hi again,
I just wanted to say thanks to everyone for the information. I blanket emailed B of A this morning and got a call this evening. They are going to keep my loan at a fixed rate although they said they will not mail me any documents stating this (which I didn't really like). I got the name of the person who called me and I plan on writing a letter to B of A confirming our discussion. I just don't feel like I can trust them at their word anymore...btw, I was the person who was asking for the copy of the solicitation (above) so I don't need it now.

I still can't believe that they thought/think this is ok to do... CRAZY

I am having the same issue as well and am meeting with an attorney in the San Francisco bay area tomorrow November 13th, 2009. I will update a posting after to let you all know what transpired.

I have a Gold Option Loan with B of A that I was originally told was a fixed rate, and now they have changed to variable. I was also told in the beginning that it was a "line of credit", but now they said it is a credit card. Even after having a high credit score and paying on time, they cut off my ability to use my account.

I have been on the phone today for 2 hrs being passed from one B of A associate to another, only to be told to just "file bankruptcy" or use their debt consoldation program.

I feel at my wits end, as I have been unable to find a lender to help me refinance this loan at a reasonable rate. I did open up a Wells Fargo Account to try to work with them.
I just feel like I'm trying to be honest and reasonable, but I'm just beating my head up against a wall.

I just got off the phone with Bank of America and the rep told me that Bank of America is canceling the new terms of the variable rate with this Gold Option Line. She said that the decision was made on November 18th, 2009 and that we will receive new statements in the mail within a week or two. She said it was because of the economy. Honestly, I think BoA realized that people would just stop paying their debts or either find a credit union to do their business with. It was really a bad business decision and whoever what responsible for it was obviously very greedy and didn't consider thinking that people would just stop paying.

I will wait until I receive my letter.

I have the same situation as all the rest in this forum. Please keep me informed. I would like to be include in class action lawsuit also againts BOA. phllpln@yahoo.com Pleas we need to stick together on this one.

I just received a call from a representative of Bank of America informing me that they will be keeping my account at the original terms. They have made a businsess to do this on all of the gold option accounts based on the complaints that they have received. I asked to get something in writing but she declined and said I would just see it on my next statement. I really would like to get something in writing and think I will pursue that. They did not have any problem with sending me a letter that their business decision was to change my account to variable.

Hello everyone. I just received my letter today from BoA. It states that my account will remain at 7.99% non variable and that my repatment will not extend as long as I make timely payments and do not reaccess my account. They did reference the fact that I filed a complain with OCC Office of the Comptroller of the Currency. The letter also states that my account remains subject to potential future changes according to the account agreement. Hope this helps. It was signed by Stephen Fraser from the Office of the CEO and President.

You would think of all the money I have tied up with BoA this would be a non-issue...anyway, there is relief but looks like you all have to complain to get it.

My husband and I consolidated our credit a couple of years ago and got a Gold Option personal loan from Bank of America. The loan was for $32, 000. For the past year the intrest rate for that loan inexplicably shot up to over 20% APR - The balance of the loan is about $30, 000.

We have a credit card, also from Bank of America, in my name with a $28, 000 limit on it since 2005. For a few months I've been getting checks for balance transfer and cash advance promotions, the most recent being for a promotional apr of .99% till Sept. 2010. I usually carry a very low balance on this card.

Husband called BOA to try to get them to either lower the interest rate on our loan or facilitate transfering most of the loan balance to the CC. Basically, we would use one of the cash advance checks for up to my credit limit, deposit it in his checking account and use that to pay the loan. Once he told them what he wanted to use the cash advance for - they immediately lowered the available credit on my CC from $28, 000 to $4, 000 and claimed to not be able to lower the interest rate on the loan.

If we DIDN'T call them, didn't tell them what we were going to use the money for, they would be none the wiser. We would STILL owe the money to Bank of America, we just wouldn't be paying them an obscene amount of interest on it. I've never experienced anything like it. Do NOT give BOA your business. I am so disgusted.

I've been trying to work on my credit score, and it hasn't changed by much all year because they've effectively lowered my overall credit limit, keeping my debt to credit limit ratio the same. I currently have the Gold Loan LOC and a credit card with them. I've been paying well over the minimum payment for the past year on both accounts, and I've NEVER made a single late payment. Through prioritizing my LOC this past year, I paid it down from $16, 000 to $7, 000 and BofA has been lowering my limit as I've been making these payments. They lowered it to $14k, then $12k, then $9k. They lowered my limit 3 times in less than 1 year! On top of that, they've also lowered my credit card limit as I've been paying that down, too, to prevent transfers between those two accounts, like onyourmark's posting. I'm absolutely disgusted by how they do business. I started with MBNA in 2002, not BofA. I just transfered my LOC elsewhere (I expect they'll want to auto-close my LOC once they find out the balance is zero so my credit score will likely not change by much again) and will pay off my credit card balance soon. I'm also looking to purchase a home in the near future, so needless to say, they won't be getting that business. I will NEVER EVER do business with BofA again. There are many other banks that are much more personal, helpful and ethical.

If anyone could send me the agreement i would really appreciate it. My email is ospreymc@charter.net

My wife was sent this offer in the mail, it was called a Gold Option Plan. She came to me and showed me how she could get a lower rate on her credit cards. She asked me if I wanted to take out this because it would lower our monthly payments. I looked at her and told her not to do it because it sounded to good to be true. Well to make a long story short, she took out the plan and while she was talking to them on the speaker phone, I told my wife it was a mistake and she should not do it. They asked her who I was and she said her husband. Well here is the clincher, they put me down for the loan.

When I found out, I called bank of America and told them to review the tape that at no time did i agree and they assured me that I was not on the loan. Fast forward to 4 years later when we had lost our home due to the effort my wife was making at paying the $660.00 a month payment to save her credit. She lost her job and everything went south.

Does anyone know how I can contest this debt. There was never anything that my wife had to sign and it has been so long that the debt is now with a debt collection agency. My wife does not owe anywhere near what they say she owes. She paid back over 28 thousand dollars back on a 20, 000 dollar loan. The interest rates were higher than what she was promised. This whole ordeal has been a nightmare. In the end, BOA foreclosed on our home because we could no longer meet our Mortgage payments due to this milestone place around my family's neck. Any help would be greatly appreciated.

Well in Nov of 2007 i opened a Gold option Line of Credit with BOA and due to hospitalized and unemployment i had to stop making my $230.00 month payments which by December was jacked up to $261.00 and after three different phone conversations of PROMISING to get my loan into a smaller monthly payment of $120 and saying " If you pay us $x by this date we can enroll you into the program" but after i pay the amount they ask i wasn't qualified to be enrolled so i stopped paying period for several months now i owe about $6, 000 after they've added $49 late fees and other fees. But my question is whats going to happen now i am working part-time and i can't afford high monthly payments. I've heard my state is one of the only state that is illegal to garnish wages but has anyone else had to stop making payments and if so did they sue you? thanks Amy

heres the worse...I was on autodebit---they raised mine because they claimed I was "late" 1 day---I was on their autodebit and they were taking it from anoth Bof A account! Finally had it--paid off in full, early and closed the account--guess what, they drew another 470 dollars leaving me a credit! They promised to transafer it back, never did- finally 5 weeks later I got a check and a letter saying they would no longer withdraw on this closed account...got a statement yesterday, now I have a 940 dollar credit as they debited 2 more times! Un-freakin-real

I, too am suffering from the same horrible fate... I opened a "Gold Option Loan" with BOA in June of 2008. This was a $16, 000 loan with a 10% interest rate (due to my young age) and was set for 60 months. I was scheduled to pay $286.00 each month. This is my 59th month of paying $300 a month (which is an extra $14 a month). I have been fighting for the last two years to find out why my interest rate jumped to 18.98% without my permission, advisement or consent. I have also questioned why the terms of the loan state that the loan should be fulfulled next month and even though I have paid them exactly $18, 000, I have only paid $3000 on the principle of the loan. I mean really, how can you keep $15, 000 out of $18, 000 as interest? And how can you come back almost 5 years after the beginning of the loan and state that the loan has now become an 11 year loan?
I have contacted CS numerous times as well as going into the local BOA branch and I am getting no where. No one can tell me how much I have paid on the loan, why it isnt paid for, where my money has gone, why I havent paid any more principle than I have. No one can provide me with a copy of all loan transactions, copy of the loan contract, terms, or anything. I am at wits end.
If anyone can help or has any valuable information, please email me at kirbyjbr@yahoo.com