This blog was created to fight for people who have signed up for Bank of America GoldOption plan. As you all know by now, Bank of America has sent us a letter stating our fixed APR we agreed to is now changing to a variable rate. Most of where told our rate would never change. Most of us have made our payments on time and lived up to our end of the agreement. We did the right thing, we consolidated our debt hoping we would pay off the loan and, in turn, B of A would make a tidy profit. So what are we to do? Fight that's what! Here's the game plan:
Phase 1 - Build an Army - I ask you to post your story to this blog and suggest some courses of action.
Phase 2 - Call to Arms - Once we build our numbers, we will agree on a weekly Call to Arms. It could be writing a political official, emailing the bank, or focusing on an media outlet.
Phase 3 - Resolution - Whether it is B of A reversing it's position or another company offering to take these loans to make a tidy profit, we shall prevail.
Our strength is in numbers. Imagine, 10,000 or 100,000 of us banding together to fight for what is right! The possibilities are endless. We can turn the tide and change the way Credit Card companies treat their customers. Are you with me?
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Count me in.
In Dec. 2006, I obtained a Gold Option loan through Bank of America through a mail solicitation. According to the solicitation, the offer was for a fixed rate loan (8.99%) for 96 months. I called to inquire about this offer, was assured that it was a fixed rate loan, then proceed to transfer all of my balances to this account. In Oct. 2009, I received a letter from them that said that my rate was being changed to Prime plus 5.74%. I explained that it was solicited as a fixed rate loan and that the customer service representative verified that but was told I should have read the fine print, which said they had a right to change the rate. This account was completely misrepresented and the original solicitation and customer service representative were deceptive and misleading. I have talked with numerous other customers that have this same Gold Option loan and apparently Bank of America has sold this account to hundreds of other victims as a fixed rate account also, only to switch it to a variable..and unpredictable...rate which will only cause our payments to increase. My credit history is excellent and I have never been late or over the limit, so this change is grossly unfair. When I called to "opt-out" of this change by closing my account, I was told that this was not an option since if was a line of credit instead of a credit card. I, like many others who have this loan, have budgeted a certain amount for this payment and cannot afford for it to increase.
File a complaint with the federal reserve at:
http://www.federalreserveconsumerhelp.gov/consumercomplaint.cfm
I am in too. Like Nations63, I too received a solicitation for a "fixed" 8.99% for the life of the loan. I paid all the payments on time and now received the letter converting fixed to variable. This is bait and switch and BofA should be penalized. I will never do any more business with BofA.
I've contacted BOA and told them that until I get another letter saying that I will remain on the originally agreed upon fixed rate, I will not be sending another payment. They can send it to collection and I'd rather deal with them then BOA. I'm willing to screw up my credit, as there wouldn't be a point to having good credit if banks still screw you over like this and we're left to defend ourselves against their lawyers.
From spending a little over a day in complete despair, frantically researching the situation it seems like there are a number of commonalities. It appears that B of A intentionally targeted folks with excellent credit history, but who have pretty significant amounts of debt.
I am another of these victims that have been preyed upon by the overtly dishonest practices of Bank of America.
In my case around October 2008 I was approached very aggressively at least three times to consider switching my then credit card debt to this loan. I had two separate conversations with at least two different customer service representatives that lasted nearly an hour each as I asked a ton of questions since the majority of my debt was already consolidated on a fixed interest rate credit card, with none other than Bank of America (it originated at MBNA.)
Well with what felt a lot like a negotiation I was able to move over approx. $50,000 worth of credit card debt that was at a fixed 11.99% APR to the Gold Option loan at 9.99%. I asked at least 10 times between the two separate operators I spoke with if this would be a fixed interest rate. Every single time they assured me that it was a fixed rate, and all of the paperwork that was sent to me marketed it as a great product because it's rate will not change! Exactly what I had with the fixed rate card, only two points lower. Sounds great, "sign me up."
I will be pulling the paperwork later this week to go through it to see the exact wording. I will most likely scan it and have it available as I keep every single piece of paper any creditor sends me.
I am quite meticulous about keeping paperwork and track of my finances, and as such I have an excellent credit rating 790s-800s and have never missed or defaulted on any bill sent to me.
The suggestions I see on other blogs suggesting we just not pay our bills troubles me greatly, as I do not want to be "one of those people" who does not take responsibility or pay their debts. I wracked up the (now) $46K, I will pay for it. But I expect the people I borrowed the money from to be honest business people as I am an honest person as well.
I'm also feeling particularly vulnerable since I recently purchased my first home, which I was of course very cautious of our budget and with my wife and mine excellent credit scores we were able to qualify for way more than we could afford. Well we were practical and opted for a home that IS affordable since we have been on a four plan to be completely out from under any unsecured debt. Well the vulnerability comes in whereby my mortgage was sold to none other than Bank of America Home Loans. Needless to say I am not at all comfortable with this.
I understand that in tough economic times people have to start thinking differently to save money and keep operations going, but I think the actions of Bank of America are absolutely despicable. Targeting good people, with a product that promises to help them put their past irresponsibility behind them by offering a path out, only to ambush them one year down the road is absolutely shameful. Shame on you B of A. Shame. It makes me sick to know that my tax dollars went to help out these profiteers.
I call upon our legislature to provide similar protection for those of us who tried to do the right thing by eliminating our credit card debt as they are providing to those with lots of current credit card debt. This recent action of B of A is exactly the tactics that helped our economy get to where it is today.
Please, help us.
I urge everyone to put a very nice, professional letter stating your issues to what has happened with this to Your Senators, Congressman, The House Banking Committee, Comptroller of the Currency, and local media outlets then e-mailing a copy to ken.d.lewis@bankofamerica.com.
I did this and the very next day received a phone call from an executive at BofA who told me my rate was now fixed and that it was totally just a business decision. I firmly believe if we can get enough people to keep the pressure on this deceptive tactic we may win. The executive went out of his way to tell me that they have done everything to the letter of the law, but I would assume they realize they were part of a clever marketing campaign that dooped many of us into a bad loan situation.
Good Luck to all and keep this GRASSROOTS CAMPAIGN ALIVE.
Just got off the phone with a supervisor from the Breya, Ca. office. His name is Javier Cintron. As with all of the comments above, my story is the same. I opened a Gold Option account with a non variable rate 2years ago. My loan consultant (aka salesman) was named Jason Tapang. Since this agreement was verbal if I asked him once I asked him 10 times concerning rate increases. The answer was the same. BOA will not change the fixed rate. My credit was based on income and my ability to repay. I was comfortable with the payment terms. If I had known that BOA would change terms I would never have agreed. I have a file from the inception of this process and cannot find the original pamplet that was mailed to me. Apparently this was a business decsion based upon the upcoming changes for credit card companies. The supervisor advised me to write a complaint and send to:
Bank of America
PO Box 15724
Wilmington, De 19850
attn: customer correspondence
This is totally unethical and I am assuming Mr. Tapang was trained quite well in anwers that would close the deal. I am contacting all of my representation with Washington concerning this matter. I will never do business with BOA again.
I am also a victim of BOA scam of a Clean Sweep. They guaranteed me a fixed rate loan to pay off debt where I was assured my payment or rate would not change for the duration of my loan. My loan was taken out over the phone, nothing was signed.
I've e-mailed “Ken Lewis” as suggested twice, however I'm not receiving a confirmation that my e-mail is going through. Do you have a mailing address for him?
I found the original solicitation and I can e-mail it to anyone that needs a copy of it. Mine is from 2009. It’s very deceiving! They repeat and underline fixed rate several times. Like many others I was assured this was a fixed rate, my rate or payments would never change as long as I was never late on a payment. I think for the most part our story’s are all the same or very similar. I just don’t know what to do at this point. I know that I will not be able to handle an increase in my monthly payment when that happens. The funds are just not there.
I filled complaints with the following:
http://www.occ.treas.gov/customer.htm
http://www.doj.state.wi.us/
https://www.federalreserveconsumerhelp.gov/FormComplaint.cfm
https://www.ftccomplaintassistant.gov/
I’ve also mail a letter to:
Bank of America
PO Box 15724
Wilmington, De 19850
attn: customer correspondence
So far the only one I heard back from is the Wisconsin Department of Justice which informed me that BOA was a National bank so there was nothing that the State could do and referred me to the Federal Reserve.
Isn’t there any law out there to protect us from these types of lies and scams? Any suggestions? What should I do from here?
Thank you!
I received the same letter you all got. I've decided to take every bit of my financial business to a locally owned bank. It was surprising to find out that there is only 1 really locally owned bank in my area. Every other bank has a name that sounds local, but only 1 is actually owned by people that live here and contribute to the community.
Support your local banks! If Bank of America wants to now start penalizing us for being good customers, then I say we should have the good sense to transfer every bit of business that we have over to local banks that will welcome the business.
It only takes you a little bit of research with your local Chamber of Commerce to find out which banks in your area are truly local banks.
I too have had the same thing happen with BofA. I was told that I would have a fixed rate for the term of my account. Since everything I received very clearly stated non-variable and then was repeatedly told verbally that this was indeed a fixed rate I believed them to now find they are changing to variable and you do not have the option to opt out. I have filed a complaint with the Federal Reserve.
Greetings,
I to have been hit by the variable rate scam. Note that I am not a lawyer and nothing stated herein is to be considered an assessment of legal rights or responsibilities. Though I am not yet a lawyer, I will be admitted to the Illinois bar in a matter of months. Consequently, I have formed rudimentary opinions on the legality of the variable rate switch. I would very much like to have the original terms and conditions posted somewhere so that I could review the language, as well as that of any solicitations. I have requested this information from BoA as well, but am not confident that they will forward all relevant information.
My first observation is that the supposed term in the agreement that purports to give the bank the ability to change the repayment terms of PAST transacions is unenforceable in contract. Legally, this appears to be an illusory promise, a commitment where the maker exempts himself from any responsibility. No matter what an agreement says, it is not possible to contract for something and give the seller unilateral power to change the price after the fact, unless there is additional consideration. It is not possible to assent to an unknown price. Now, going forward it would be possible, but it couldn't be applied to transactions already consummated. Leeping the line open is additional consideration, this is why credit cards have opt-outs. A contract for a line of credit is no different that one for a revolving line, common law contract principles apply.
Additionally, it seems that the clause may be severable under theories of procedural or substantive unconscionability, lack of mutuality, or lack of consideration.
This move by BoA appears to be in bad faith, and what I have seen and remember about the original solicitations, they may also be on the hook for deceptive trade practices, misrepresentation, or fraud. These types of claims can give rise to punitive damages.
I doubt that contacting the government will do anything. The way to fix this is to file suit. The problem to me at this point seems to be that there are no damages YET. Once prime increases, and it can only increase - it is not possible for prime to go lower from here, then we all will actually have pecuniary harm. I fear that until then, a suit will be premature and face immediate dismissal.
Anyone that has scanned documents please forward them to mike1980docs@hotmail.com . I setup the hotmail only for this issue. I need to see all the available documentation so that I can try to weigh my legal options.
I will file suit against BoA, that is not in question. If we can get a class action going, all the better. I am willing to be named.
Again, nothing included in this post is to be construed as legal adivce. This opinions are my own and reflect only personal opinions and reflections. To determine what rights you may have contact an attorney.
Use the below e-mail and physical address not the one located in Delaware.
Ken Lewis ken.d.lewis@bankofamerica.com
Bank of America Corporate Center
100 North Tryon Street
Charlotte, North Carolina 28255
If you need additional e-mail addresses please let me know. I have been able to find about 16 of them with 6 that bounce back.
Okay, someone tell me if BofA goes bankrupt, now what??!
Source: theinternationalforecaster.com (this site has been reliable for years)
"Our sources tell us that the reason that Ken Lewis quit as CEO of Bank of America was because the Federal Reserve is dumping as much of the toxic waste as they can from other major banks into Bank of America and they are going to allow BoA to go bankrupt in 2010. There are 40 zombie banks in just Chicago alone. And, no one will take them over because they are so bad off with toxic waste. Corum that went under recently, and was bought by M&B had the Fed take all the toxic assets and M&B took the good stuff."
Thanks for posting this blog. I too have a hefty balance of $40K (was a lot more!) and a 7.99% interest rate. I received my letter last week stating my new rate would be the margin of 4.74% plus the prime which is 3.25%. That's still my 7.99% but when the prime goes up, I am going to be screwed royally. I already sent a complaint to the Federal Reserve and I will be sending out other complaints as well to this Ken Lewis. Thanks everyone for banding together to get this solved. My dad used to say having great credit was a positive thing....dad..I'm not so sure anymore.
Please read comment above, Ken Lewis (CEO) has left BofA, saying that they are going to be insolvent in 2010.
For those of you that filed a complaint with the Federal Reserve. I received a response today. Below is there response:
The entity you are inquiring about is regulated by the Office of the Comptroller of the Currency (OCC), and we have forwarded your correspondence to the OCC to investigate and respond to you directly. If you have questions about the status of the investigation of your complaint, please use the following contact information for the OCC:
OCC Customer Assistance Group
1301 McKinney Street, Suite 3450
Houston, TX 77010-9050
Website: www.helpwithmybank.gov
Phone: 1-800-613-6743
Fax: 713-336-4301
Sincerely,
Federal Reserve Consumer Help Center
Good luck to everyone! :)
Like you guys, opened my GoldOption Account over the phone.." It was advertised as a fixed APR for the life of the term. When I applied for it over the phone, the guy from BofA assured me it was fixed, always would be, would not change, etc. ever. I had an equity line before through my mortgage company and had to consolidate it into my mortgage because when the housing market tanked my interest rate on the equity line sky-rocketed so I made absolutely positively sure that the APR on the GoldOption would remain fixed. I was assured it was. That is the ONLY reason I decided to incur more debt.
Well, got the "October 2009" that it is now variable. Now I'm not sure what to do. I feel helpless, especially considering I worked out the numbers before I took out the loan such that it worked in my budget. Now that it's variable, I hope it does not break me and my family.
By the way guys, there is a radio show in Los Angeles called the "John & Ken Show" on KFI AM640. They are currently tackling the credit card companies who are raising their interest rates to obnoxious levels. I sent them a letter outlining what BofA is doing to us with the GoldOption with the hope they will incorporate it into their segment. They are movers and shakers and millions listen to them. They have a ton of influence when they get going on an issue. If they help with the cause, things will get done.
Write them at:
johnandken@kfi640.com
John, your story is very similiar to mine. It took me over two weeks to finalize on the line of credit because I was refinancing my house and I wanted to make sure I was making the right decision and that is was a fixed rate. They repeatedly said it was fixed. Despite the fine print, I can't believe they can get away with this since so many of us were told the same thing. I will right the radio station that you posted....hope it helps. Thank you.
Also, does anyone know if you can close your account and remain under the same terms before the APR changes from fixed to variable? I know it will hurt my credit but if I can remain at the same terms it's better then it ruining my credit because I can't pay.
Greenlee, can you mail me a copy of the solicitation and the offer matierals? I can't find mine. Thanks a ton. My e-mail is jmacrill3@verizon.net.
I plan on drafting my letter today and sending it off to everyone discussed in this blogs.
Greenlee -
In regard to whether you can close your account and remain under the previous terms, the answer is no - according to BoA's position. I argued the legality of this in contract with 3 different levels of managers, and their only response was that their decision is final. (they also told me that their contract cannot be challenged in a court of law, which is illegal in itself). I am convinced that the only way to fix this injustice is through litigation.
Also, can you please send any solicitation or other materials you have to mike1980docs@hotmail.com ? I am trying to compile as much factual documentation as possible prior to filing my complaint with the court.
Tim - do you have the other e-mail addresses?
Mike - I'll e-mail you the soliciation letter.
Here are additional BofA addresses. Approximately six will bounce back.
ken.d.lewis@bankofamerica.com, colleen.haggerty@bankofamerica.com, britney.w.sheehan@bankofamerica.com, nicole.nastacie@bankofamerica.com, joe.price@bankofamerica.com, keith.banks@bankofamerica.com, michael.jones@bankofamerica.com, liam.e.mcgee@bankofamerica.com, brian.t.moynihan@bankofamerica.com, amy.brinkley@bankofamerica.com, steele.alphin@bankofamerica.com, liam.e.mcgee@bankofamerica.com, bradford.r.dinsmore@bankofamerica.com, michelle.shepherd@bankofamerica.com, maryellen.baker@bankofamerica.com, ken.d.lewis@bankofamerica.com, amy.brinkley@bankofamerica.com, steele.alphin@bankofamerica.com
I also fell for the BofA Gold Option Scam. My terms were for 84 months at 8.99%. I opened the account in August of 2007. I've never been late nor I have I ever requested any more additional funds. My reward for living up to my responsibility has been having my credit limit lowered by over 10K and to have my account terms changed from fixed to variable.
I would like to file a class action lawsuit.
I'm with you. I have TWO of these Gold Option loans.
I have not received the APR change letter yet. I keep checking online to see if my fixed gets "fixed".
I pay about $1100 a month for both loans and pay $350 to lower the loan.
I can't figure out how the calc the average daily balance and how they figure out how man days in the statement... Its different every time.
Thank you Anonymous for all the e-mail addresses. I was able to OPT out and so where many others due to all the e-mail addresses that you provided. Again, thank you!
I too sent an e-mail to those addresses. I got a call back and was told that I'd be opted out as well. The lady I spoke with was very nice, and professional, which I appreciated. Thank you so much for the information.
But I did write a follow-up e-mail and requested something in writing. BofA is quite big, and sometimes the right hand does not know what the left hand is doing. So I want something in writing in case I get a statement that says my rate went up.
Hi Everyone,
I have the same story here. B of A willfully deceived me. I wrote emails to the list provided. I am wondering how long it took to get a response for those of you that got the chance to opt out. Any info would be awesome. I am thinking of bombarding them with more and more emails till they contact me, but am wondering how long to wait. I sent the email this morning. Thanks!
Hi again, B of A got back to me this evening. They are changing (as they put it) my loan to a fixed loan for the duration. Thank you for posting the email addresses! It worked! They will not submit anything in writing to me, so I am planning to write a follow up letter as well. I do not know the person's email address (who talked to me) though I have her name. Any thoughts on where/who to send the letter to?
I want to thank whoever posted the email addresses. I sent an email to all the addresses and today got a voice mail from Matt Mauer or Nauer (I couldn't quite understand him. He said he was calling from the office of the CEO and President of Bank of America. He said that my account was being restored to the original 8.99% fixed rate and that my payments would be calculated the same way as in the original agreement. I called him back, thanking him and asking for a confirmation letter, or even an email. I encourage all of you to try this. I was skeptical but it worked and I am delighted.
Thanks so much!!!
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.
This is Rob (retentionguy). For some reason I'm having trouble posting my comment with my Google account.... Anyway, I also was notified a few days ago that my account would stay at a fixed rate. Man, emailing all those email addys sure made some people upset. You should have heard some of my voicemails.... But it worked!
I got the same phone call from Bank of America, saying that my rate would not go up. I'm very happy to see what we can accomplish when we decide to stand up for ourselves.
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 repayment 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.
Well great news to all of you who were able to get it reversed:) Unfortunately, BOA found an new way to get us. Well here is my story with my gold option LOC... not only did they close my acct about a year ago, (which was fine because I only was paying it off, not charging more, actually I didn't have a way to charge so I don't know why it was called a LOC) Well last week I guess they found a new way to get us..I received a new bill and my payment went up, yet my interest rate was the same. So I called and they told me due to the economy, they are changing the terms of the note to be paid off in three years instead of eight years. So although I have paid faithfully for the past two years, my loan is now shortened to three years and forced my payment to go up. I am struggling to make the one I have due to the economy and lack of work for our business and now this. I made this loan over the phone and was told this rate and term would remain the same. I never signed anything before receiving the funds. I have over a 760 beacon but they gave me a 14.99% interest rate because I am self employed, I was told I could have a review in 6 months and when I called back they said they couldn't lower it. I have paid over $11,000 in two years in interest because of this high rate and they get that before applying to principle. I borrowed $25,000 for medical bills, I still owe $22,000 two years later. I am not sure what to do, but I need something to be done. I also have a LOC through my company that they also cut off, we never paid late, they just said they weren't doing LOC's anymore. Now we are just paying interest and minimal to principle due to the same scenario. I think when "they" close your acct they should lower the interest rate to help you pay it off sooner. It was "Our taxpayer dollars" that not only saved them but paid bonus's to all their big wigs. What is wrong with this picture? :(
I too have been screwed by B of A. I took the gold option loan five years ago. I got 35,000 I was told it would be paid off in 7 years. After 5 years I still owe 33,000. I can not believe they can get away with this. I don't want a lower interest rate I want my loan to be paid if full since I have already given them 48,500 since this started. I would have been better off going to a loan shark at least I would know who I was dealing with!!
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