BofA Will Not Increase Rates

The financial crisis and increased concern about predatory lending practices has led the Obama administration to try to curb these practices that benefit the lender over the consumer. Because of this initiative, the government will begin to place restrictions on the amount of freedom that banks will have in changing credit card interest rates, a restriction that will begin in February.

Bank of America has decided that it will not raise any credit card interest rates until then, as several banks have already done. However, Bank of America still maintains that it will adjust credit card rates accordingly if a cardholder is in default or if the cardholder is late on two or more payments.

Credit card companies have attracted the outrage of both the public and many leading officials on Capitol Hill by raising credit card interest rates and charging random fees to customers that pay their bills on time. The new law will restrict the changing of interest rates on accounts that pay on time, and even then, those who have paid late in the past may still restore their old rates.

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