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Bank of America Customers: Take Note if you’re a Late Payer

News

Bank of America recently announced changes that will make it more difficult to rebound after a missed credit card payment.

If you are a Bank of America customer, you will likely get word that missing a payment could mean stiff repercussions for future purchases. In particular, the Bank of America Corporation announced that customers who miss a credit card payment may be charged a higher penalty interest rate on all future purchases. Most Bank of America customers have dodged this bullet for some time, even as other credit card issuers have been implementing the concept of a penalty interest for some time.

Bank of America Introduces the Penalty Interest Rate

The penalty interest rate, which may start as soon as June, could be a whopper, too, as the company announced it may charge its customers as much as 30 percent on future purchases. The company was quick to report, however, that the 30-percent penalty interest rate may not apply to every customer who misses a payment.

Determining Customers’ Credit Risk Factors

Bank of America says it will review a number of factors if a customer misses a payment before initiating the penalty interest rate, including the customer’s risk factors (such as the customer’s credit history, late payments and maxed-out balances), and all customers will receive a 45-day notice of the changes before the penalty interest rate goes into effect. Bank of America will only apply the penalty interest rate to future purchases, and it will not affect existing balances.

Bank of America, up until this point, had only charged late fees, but it is now following the path of other credit card companies and charging a penalty interest rate, likely to recoup some of the money lost as a result of the CARD Act regulations.

Bank of America is also in the process of testing a new checking account concept in some states. The new checking account concept is likely to have monthly fees. In addition, Bank of America has informed its customers that it would charge an annual $59 fee for their credit card. Customers can either accept the $59 or reject it and cancel their credit account.

You Don’t Have to become the Next Identity Theft Victim

Identity Theft

Identity theft has grown by leaps and bounds on a national and international level over the last, few years and, by the looks of it, 2011 may be just as challenging for individuals trying to protect their identity and their credit.

You don’t need to stand idly and helplessly by, however, as there are a number of things you can do to reduce the likelihood that 2011 will be the year your identity is stolen and your credit is ruined. Here’s what to do:

• One of the most common types of scams involves “phishing,” which is essentially thieves who fish for your confidential, personal information and credit card account information. Phishing works when a thief sends an email to you that appears to be an email from your credit card company or bank. These phishing emails usually are warnings that there is something wrong with your account; a problem that needs immediate attention.  The email will encourage you to click on a link that will supposedly take you to the institution’s website, but will instead take you to a phony website. The website will then encourage you to enter your personal information to verify your account. It is then that the thief captures your confidential information, which is then used to access your good credit.

Your best bet is to never, ever respond or open a warning email that claims to be from your bank or credit card company. If there are any problems with your account, you can be assured your institution won’t contact you through email. If in doubt, delete the email and immediately contact your bank or credit card company.

• Because many scam artists are quite good at what they do, they have been known to fool people using fake websites. Therefore, it is always best to type in the web address of your favorite websites instead of simply Googling them before making a credit card purchase. Also, be aware that all security safeguards are in place before making any credit card purchase or entering any personal information via the Internet. And never make any credit card purchases unless your anti-virus/firewall protection is up to date and active!