Bank One Complaint - Payment Allocations - Visa Card
FLORIDA -- Bank One Visa which handles AARP Credit Cards suckered me into a balance transfer at 6.99%. Their practice in the past and for the first 3 months after the balance transfer, payment allocations included paying the interest on my purchace and cash advance categories. Then without notice they raised the interest rate on cash advance balance from 15.6% to 19.9% and stopped allocating money for finance charges on purchase and cash categories and added the finance charges to the balances, which componds the interest. All payment amount goes to the lower rate of balance transfer.
The disclosure did state they would allocate payments to the lower rate categories first. But it did not state interest for other categories WOULD NOT be paid, thus componding their interest.
They then tried to raise the interest on purchase balance from 15.6% to 19.9%. But this time I had the option of rejecting the change and closing the account..I closed it.
Had I not taken the balance transfer special promotion deal, I could have kept the 15.6% rates and closed the account before they raised rates to 19.9%
Stay away from Bank One Visa