Bank of America Complaint - Bank Of America - Interest on interest
I've a AAA Gas rebate Bank of America Visa credit card and while I was looking at recent monthly statements I found how Bank of America grossly misleads customers and collects interest through devious methods. Here is what happened in my case and same must be true for all customers therefore good cause for class action suit, and request all customers to look closely your statements if you took cash advances any time.
Initially AAA card was offered to me with low interest rate balance transfer. After the initial offer period, interest rate on my balance transfers and purchases gone up to 13.99% and now I've cash advance interest rate of 19.99%. Looking at my recent statements I took $300 and $400 as cash advances. I took second cash advance way back in Nov’08. Even though I never missed single payment cash advance amount now shows $1064 instead of (($300+$400)- prorated monthly payments applied to cash advance amount) of less tan $700. When I spoke to customer representative reasoning he gave me was every month though I make monthly payments regularly, they add 19.99% interest amount accrued monthly on cash advance to original cash advance amount. That means to start with I had $700 as cash advance, next month it became 700+11.66 =$711.66 as interest added to original amount. In next month statement they calculated 19.99% interest rate on $711.66 so the cash advance amount now became $723.51 and goes on and on, even though I make my monthly payments. monhly paid amount is applied only to balance transfer/purchase amount where as cash advance amount keeps growing leaps and bounds. This is kind of charging interest on interest every month, which is kind of deceiving customers with hidden charges. Customers will have no clues unless they drill down and see or find out through some analyst. This is like day light robbery by same big bank which was bailed out by our tax $$$. This greed should come to an end else most of American end up in debt trap. Govt should act fast and stop this bleeding.
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