Bank of America Doesn't Want to Get It

[wlotus]

Someone else's blog entry about the horror Bank of America put them through today reminded me I need to publicly post about my experience with them. The letter I wrote to their CEO succinctly explains the situation.

12 November 2008

Mr. Kenneth D. Lewis, CEO
Bank of America Corporation
100 North Tryon Street
Charlotte, NC 28202

Dear Mr. Lewis:

I became a Bank of America customer in December of 2003. In that time I never bounced a check or overdrew my checking or savings accounts. I never missed a payment or made a late payment on any of the three credit cards I had with your company. In January of this year I was laid off from my job. Despite being unemployed all year, I continued to make the minimum payments on the card which had a balance, kept a zero balance on one card which I did not use, and immediately paid off the other card whenever I used it. My credit rating remained stellar.

When it looked as though my finances would become tight in another couple of months, I called the credit card center, explained my situation, and asked if they could lower my monthly payment. I had always heard that if one calls one's creditors, they would be willing to work out ways to keep one's account in good standing. I called the credit card center expecting that kind of response.

Instead, their response was to immediately close all three of my credit card accounts without warning. I found out my cards were canceled only when I attempted to use my card a few days later and called to find out why it had been denied. Further inquiries on my part were met with apologies for being unable to make an exception, in spite of my flawless banking record.

I have since closed my bank accounts with Bank of America, transferred my banking to a community bank, transferred my credit card balance to Discover Card, and written about this incident in my blog. The public needs to know this is how Bank of America responds to the proactive, good faith efforts of their customers to keep their accounts in good standing through challenging economic times.

Sincerely Disappointed,
wlotus

Cc: Bank of America Credit Card Division, PO Box 15019, Wilmington, DE 19850

The office of the chairman sent me a letter in response. In essence their letter said, "Even though you do not agree, we followed all of our rules and did what we were supposed to do." In that case, they ought not mind the fact that I moved my business to other financial institutions. :-) I don't see why they bothered to respond just to tell me that; it isn't like that response would get me to consider doing business with them or encouraging my friends and family to do so. I guess they just wanted another chance to say their piece.

I'll keep the letter for posterity, to remind me not to do business with them, and to remind me to tell my friends and associates not to do business with them.

Comments

[littleblueworld.livejournal.com]

I know so many people who've had bad experiences with BoA. Good for you for being proactive and shame on them for bad policy and customer service. I'll never bank with them.

[wlotus.livejournal.com]

A number of people who have heard my tale have said the same thing. They seem to be long on money and short on the human element there.

[ginmar.livejournal.com]

That's pure and utter bullshit they're dishing out. Just...be careful with Discover, okay? I've heard some things about them.

There's a site called Consumerist dot com that offers advice and concrete strategies for dealing with corporations.

[wlotus.livejournal.com]

Oh, I'll be careful, alright. They were the next best option, both for making a statement to BoA and for paying down that balance, but I have no misconceptions about any corporation looking out for anyone but themselves.

[ginmar.livejournal.com]

What about credit unions?

[wlotus.livejournal.com]

That's something I can look into, if I need other banking services my community bank doesn't provide.

[ginmar.livejournal.com]

They're very reliable and people-oriented.

I'm a bit paranoid about banks these days, duh. Who isn't?

[flewellyn.livejournal.com]

Mental note: when I take over the world, break up BoA.

[ladyofthelog.livejournal.com]

Yeah, I have little choice at the moment because that is the only bank within walking distance of my house in any direction. When I move in May, I am absolutely closing all my accounts with them.

[arkadelos.livejournal.com]

Ah, Sailor Jupiter! Seeing all these anime icons - especially anime I watched when I was a child - on various LJ journals and communities reminds me of how old I am now.

[arkadelos.livejournal.com]

I am glad you took some action against them! And thanks for telling all your friends. Now, I know never to do business with them in the future.

[verucas-chaos.livejournal.com]

Ugh. I got a similar response to my Macy's letter. I hate it when I have to stop doing business with someone because of their stupidity.

[untied.livejournal.com]

ugh. i'm pretty sure i dislike them even more than wells fargo, and wells fargo sucks some major banking ass.


i'm really upset about the turn wamu is taking, since they're the first bank i ever truly liked

[wlotus.livejournal.com]

WaMu was bought by another impersonal banking monster (Chase, I believe), so I am not surprised, if they are turning as well. TD Bank is another; they used to be Commerce, but when TD Bank bought them, they suddenly changed some of their fees. That experience led my friend to change to the same community bank I use.

[denimpeanut.livejournal.com]

Unfortunately, this is pretty standard operating procedure, especially in 2009. Many people are defaulting, or filing bankruptcy, due to the economic downturn. Before doing so, they often max out their credit cards.

Back in 1992, I had credit problems and sought the help of a nonprofit credit counseling service (not a ripoff "credit repair" service). They were funded by the major creditors, and worked out reduced payments with them. I also had long credit histories with these creditors.

However, the very first action that was taken was that my credits cards were cancelled. Since I could not pay as agreed upon, they were certainly not going to allow me to increase the balance.

My accounts were also flagged as "substandard" to the credit bureaus (TransUnion, Equifax, etc.) and my FICO score dropped.

I'm just letting everyone know that it's never a good idea to tell a creditor that you cannot pay the minimum payment - not if you're trying to maintain the account and your credit score. This makes them very nervous, and they WILL take action.

[wlotus.livejournal.com]

Yes, I realize that, now. It's a shame that being proactive is punished, not rewarded. That means that rather than working with one's creditors, one must now work against the creditors to cover their own ass. Business has moved out of the personal relationship realm into the dog-eat-dog realm. It's a sad thing, but it's reality, and we must do whatever we must to protect ourselves, because that is what corporations do, now.

[miss-shelley-p.livejournal.com]

While I don't agree with the action they took against you, I'm pretty sure minimum monthly payments are regulated on a federal level. Kind of like prime. They've been laying off people left and right, though. They bought out a ton of failing banks and now they failing. I love how companies don't think stuff through before buying more companies. *sigh*

This new card you got, did you get the "in case shit" insurance? Where you can suspend making payments if you need to?

I had Discover, but I wasn't thrilled with them, so I closed my account.

I can speak infinite positives about Chase, though. I never have to wait when I call them, they are always super helpful and courteous, and just overall awesome. I have the Amazon Chase credit card, and I LOVE that I get little gift certificates a few times a year just for buying groceries and gas.

I'm sorry they pulled this shit on you. I have a card with them only because they took over MBNA. They bought the company, hiked my 13% interest to 26%, essentially forcing me into getting a card with them at 8% after paying the balance transfer fee. I keep it because I can't afford to pay it off. But I definitely don't like them as a company. They switched my interest rate, and claimed they informed me, but I never was able to find the "letter" they spoke of saying my interest rate would double for no good reason. And it was a charity credit card where a percentage of my spending supported the charity instead of getting rewards. Bullshit. Whatevs.

[wlotus.livejournal.com]

I have the "in case shit happens" insurance on all of my cards, now!

[miss-shelley-p.livejournal.com]

Sweet.