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Oct 06, 2009 -- Bank of America launches new credit card with simple terms
Bank of America is garnering laurels from Clark for a new credit card that comes with one simple page of terms and conditions in plain English. Who says the consumer champ never has a kind word for the giant monster mega-bank?!
The BankAmericard Basic Visa card also includes the following features below.
(Editor's note: Clark is presenting these for your information only. He is not implying that these terms are necessarily favorable. He is, however, excited by the one-page disclosure that accompanies this card.)
• The interest rate is the same for all transactions, including purchases and cash advances. • It comes with one interest rate -- set at U.S. Prime plus a margin of 14 percent -- that never changes for the life of the account. Unless, of course, the Prime Rate changes. • No over-the-limit fee. • One flat fee of $39 for late payments.
Looks like BOA has finally heard how how feed up people have become with bank gotchas, mice type and lawyer doublespeak in their contracts.
It should not have required the collective anger of a nation -- which gave rise to the Credit Card Holders Bill of Rights -- to get to the point where a giant bank finally makes the terms and conditions on a credit card understandable. But Clark's glad we got here all the same.
Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.
Clark, BOA has deceived with a small gift to disguise overall abuse. I have a personal checking and savings account and a joint account with my wife. I also have a Visa card that has been used only for overdraft protection for our accounts. It has a zero balance and has for some time. The only Visa card I use is a joint BP visa card with Chase. The interest rate has become more than I can bear at 16%. I realise this is the usual now but we have paid on time and have not been late with them or anyone else. I called BOA yesterday use the $9100 credit limit on this card to pay off the Chase card. I was honist with the agent about my current employment (Self sence my layoff last winter) and was rewarded by having BOA cancel my card that had a zero balance. Now I have no overdraft protection and a real disrust for BOA. On reading some of the comments listed here on your website, many others feel the same. Our bailout money at work.
BOA
Clark i think you are the best, but you bombed on this one. Bank of America?? Bank of Russia!! They are the worse. I have been with them for 15 years, have never been late with them or anyone else & have a 780 credit score. I called and asked if they would lower my interest rate and they suggested that i needed credit counseling! i was insulted as i am not in trouble just looking for a better rate. After that they lowered my credit limit and doubled my monthly payment! Is that even legal!
BOA
To Buzz Law: I just notified that my BOA card will charge me an annual fee of $29 starting Feb 2010. I have to agree to it or cancel the card by 12/3/09. I've had this card some 12 yrs and pay it off every month. I called. Was told it's an "across-the-board" annual fee and had nothing to do with my use of the card. Like you I was told to accept it or take a hike. So do I take the ding in my credit rating? Or pay the fee?
Credit Card
I have a Discover Credit Card only for the fact that you have to have one when you rent a U-Haul, rent a car, etc... You cannot get by without having one since your arms are tied if you have to purchase a service. Even my Orkin dealer requests a credit card which is ridiculous! I pay mine off every month and charge only to get the cashback rewards but don't buy and charge just to get cash back. If they ever request a fee I will go to http://www.credit-land.com/1263/1263_page_24141_8373841.php?link=11805 and find a no fee credit card on there!
No thanks to BOFA, Chase, Citibank, or Capital One. I'll keep my USAA card with it's 7% interest rate, thank you very much.
credit cards
When is the American public going to realize that being slave to a lender is not the way to go no matter what the interest rate. I am currently paying off my last credit card which is BOA. For the last 8 months, I have only paid cash and have been paying off all debt. What a difference financial peace makes in your life. I no longer live paycheck to paycheck and plan on never using credit again once this one is paid off. I cannot wait to be working just for myself, knowing that the money I make is for me to do with what I please, not to pay for things already bought or vacations already taken. Kelli in Atlanta, GA
Annual fees
Don't get too gleeful about BOA.
Today, I received an interesting notice from BOA; the bank notified me that they are going to impose a $39.00 "annual fee" on my BOA MasterCard. I have possessed this credit card for 11 years and I have an excellent payment history on this account. Overall, I have an excellent credit rating.
I have a $21,000 line of credit on this BOA card but I only carry small balances on it and I promptly pay them. I have never paid an annual fee on this card.
When I called the BOA "customer service," I was told by the BOA agent that I could agree to pay the fee or cancel my card. Those were the only two options. I talked to a "supervisor" who told me the same thing.
Finally, I talked with a "floor manager." He told me that the "annual fee" decision had nothing to do with my payment history (which is excellent). Instead, he admitted that it was due to the low number of transactions on the account. Since July 13, 2009, I have made eighteen purchases with the card. He made it clear that there were only two options: pay the annual fee of $39.00 or close my account.
It was obvious to me that the "floor manager" had no authority in this matter. It was a corporate decision.
I don't think that the imposition of the annual fee was the result of the "low number of transactions." I believe that eighteen purchases in approximately two months time is not "low." I think that the problem is that I didn't carry over large balances and I paid the account promptly. So, BOA gets no late fees, no huge chunks of interest, no over-the-limit fees.
What did I do? I gladly cancelled the BOA card. I don't need them; I have many other credit cards with banks who appreciate their customers. I feel sorry for those folks who have a big load of debt with BOA and can't cut up their cards like I just did. It really is a great feeling.
Credit Credit card Interest Rate
BofA's rate is not that great mine is 6% then again I have the patience to wait to buy items and do not have debt. My banker said he had never seen anyone with such a good credit score in his life. Plus I taught our college sons to avoid debit as well and they work to pay for their college cost and one just graduated debt free, with three Job offers.
Borrowers Pay 24%+
I used to invest on Prosper, before they changed their structure (now, I'm not willing to take the risk of Prosper's bankruptcy). But, borrowers were routinely paying interest rates above 24%. For those of us with good credit, 16% to 22% sounds high, but for those who are at the mercy of their lenders, a fixed margin provides a bit of stability.
Forgotten disclaimer?
It looks like Clark forgot to mention that it's a good deal for those who don't run a balance. I'm good with the simplified contract, but then again, I'm debt-free. Your mileage may vary.
Credit cards are evil
14% + interest. Late fees. No over-the-limit fees. And you are applauding them? Are you the 'consumer champ' or 'consumer chump'?
Prime plus WHAT?
Prime plus 14% is not a very good deal, because the prime rate is normally about 8%. It's abnormally low right now. Prime plus 10% would be comparable to the good old days of credit cards.
what a deal!
clark needs new glasses if he thinks this is a good deal. At the current prime rate of about 2%, that means 16% interest now. The prime historically is in the 5-8% range so this means over time you can expect 20% interest. That's a deal? No over the limit fees? So what! There should never be any of those anyways as the transactions that would trigger the over limit should be rejected. That's a deal? "Only" a $39 late fee? Isn't that about what they all charge now? That's a deal? Interest rate terms that can "never" be reset? Isn't that what alot of the credit card companies said in the past, and reniged? That's a deal?
Bottom line, this is just another in a long line of lousy credit card deals for those who carry balances. Better to just get a card with some cash back features with no annual fees and pay off the balance each month. Wake up Clark!!!!
