OT - Bank of America Credit

Posted by L on February 27, 2007, 1:40 pm

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I read the fine print. Awhile back my MBNA Credit Cards (business and
personal) became Bank of America. Today I opened the business CC 'change of
terms' letter.

In the new 'agreement' - SECURITY INTEREST
"Company and guarantor each grants FIA Card Services a security interest and
contractual right of offset in and to, all deposit accounts now or hereafter
maintained by Company or Guarantor (including, without limitation, joint
accounts) with Bank of America or any of its affiliates....."

Meaning they can TAKE YOUR CASH (or, the cash from the accounts of anyone
else who may have given you joint access (parental retirement funds?
children's college funds?)).

Oh, and
"If you have other loans from us or you take out other loans with us or in
the future, collateral securing these loans will also secure your obligation
under this Agreement"

If I am reading this correctly, this means if you have a CC with BOA and you
have an auto or truck loan with a subsidiary or affiliate of BOA, and you
default your CC -- they can take your trucks.

BOA, transforming unsecured debt into collateralized debt. Great magic
trick.

I read the fine print. Awhile back my MBNA Credit Cards (business and
personal) became Bank of America. Today I opened the business CC 'change of
terms' letter.

In the new 'agreement' - SECURITY INTEREST
"Company and guarantor each grants FIA Card Services a security interest and
contractual right of offset in and to, all deposit accounts now or hereafter
maintained by Company or Guarantor (including, without limitation, joint
accounts) with Bank of America or any of its affiliates....."

Meaning they can TAKE YOUR CASH (or, the cash from the accounts of anyone
else who may have given you joint access (parental retirement funds?
children's college funds?)).

Oh, and
"If you have other loans from us or you take out other loans with us or in
the future, collateral securing these loans will also secure your obligation
under this Agreement"

If I am reading this correctly, this means if you have a CC with BOA and you
have an auto or truck loan with a subsidiary or affiliate of BOA, and you
default your CC -- they can take your trucks.

BOA, transforming unsecured debt into collateralized debt. Great magic
trick.

Posted by Steve Scott on February 27, 2007, 5:33 pm

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There a some other points about credit cards you may not be aware of.
Credit cards are not bound by your state's usury laws. They are bound
by the laws of their home states. That's why many are based in
Delaware. I think S Dakota is the other popular state.

They may change your rate based not on whether you make you payments
with them on time but on your general history. IOW, they may offer a
rate today and change the rate significantly a year down the road
based strictly you credit score at that time.

On Tue, 27 Feb 2007 13:40:55 -0500, "L"

>I read the fine print. Awhile back my MBNA Credit Cards (business and

>personal) became Bank of America. Today I opened the business CC 'change of

>terms' letter.

>In the new 'agreement' - SECURITY INTEREST

>"Company and guarantor each grants FIA Card Services a security interest and

>contractual right of offset in and to, all deposit accounts now or hereafter

>maintained by Company or Guarantor (including, without limitation, joint

>accounts) with Bank of America or any of its affiliates....."

>Meaning they can TAKE YOUR CASH (or, the cash from the accounts of anyone

>else who may have given you joint access (parental retirement funds?

>children's college funds?)).

>Oh, and

>"If you have other loans from us or you take out other loans with us or in

>the future, collateral securing these loans will also secure your obligation

>under this Agreement"

>If I am reading this correctly, this means if you have a CC with BOA and you

>have an auto or truck loan with a subsidiary or affiliate of BOA, and you

>default your CC -- they can take your trucks.

>BOA, transforming unsecured debt into collateralized debt. Great magic

>trick.

--
Brain: The apparatus with which we
think that we think.

Posted by John Pollard on February 27, 2007, 8:45 pm

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Steve Scott wrote:

> There a some other points about credit cards you may not

> be aware of. Credit cards are not bound by your state's

> usury laws. They are bound by the laws of their home

> states. That's why many are based in Delaware. I think

> S Dakota is the other popular state.

> They may change your rate based not on whether you make

> you payments with them on time but on your general

> history. IOW, they may offer a rate today and change the

> rate significantly a year down the road based strictly

> you credit score at that time.

But they can't stop you from paying off your balance in full
(including "transferring" the balance to another credit card
with lower rates) when they raise your rates.

And since - I believe - the lendors are obliged to inform you if
they change your rate, you should have no trouble getting away
from "usurious" rates (usuary being a completely subjective
notion).

--
John Pollard
First initial underscore Last name at mchsi dot com
Please reply to newsgroup

Posted by John Pollard on February 27, 2007, 8:48 pm

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John Pollard wrote:

> Steve Scott wrote:

>> There a some other points about credit cards you may not

>> be aware of. Credit cards are not bound by your state's

>> usury laws. They are bound by the laws of their home

>> states. That's why many are based in Delaware. I think

>> S Dakota is the other popular state.

>> They may change your rate based not on whether you make

>> you payments with them on time but on your general

>> history. IOW, they may offer a rate today and change the

>> rate significantly a year down the road based strictly

>> you credit score at that time.

> But they can't stop you from paying off your balance in

> full (including "transferring" the balance to another

> credit card with lower rates) when they raise your rates.

> And since - I believe - the lendors are obliged to inform

> you if they change your rate, you should have no trouble

> getting away from "usurious" rates (usuary being a

> completely subjective notion).

Clicked Send a bit too soon.

You should have no trouble paying off the credit card with the
"usurious" rate assuming, you did not over-extend yourself in
the first place so that you are ineligible for any other
interest rate ... in which case, you deserve to pay the
"usurious" rate.

--
John Pollard
First initial underscore Last name at mchsi dot com
Please reply to newsgroup

Posted by SpammersDie on February 28, 2007, 5:00 am

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> There a some other points about credit cards you may not be aware of.

> Credit cards are not bound by your state's usury laws. They are bound

> by the laws of their home states. That's why many are based in

> Delaware. I think S Dakota is the other popular state.

> They may change your rate based not on whether you make you payments

> with them on time but on your general history. IOW, they may offer a

> rate today and change the rate significantly a year down the road

> based strictly you credit score at that time.

And you can pay off the outstanding balance, fire the issuer and take your
business to a competitor based not on whether they raise your rate but based
strictly on whether you can get a better deal elsewhere, or whether you got
up on the wrong side of the bed that day, or because the bank's CEO voted
for a president you didn't like or because he's of the wrong race, color,
religion or sexual orientation. Or for any other damn reason.

Which gives you far more rights than the lender.