For nearly 30 years, I maintained what financial institutions call "excellent credit". I've borrowed and satisfied close to a half-million dollars in various loans. Never defaulted on a single one. Always made payments on time.
In I started a small business and then the following year, purchased a house. The credit was good enough to take out a 90K (unsecured!) mortgage loan in my name alone. As a result, Bank of America, suddenly and without explanation or prior notice, raised my 9% APR to 26% on two credit cards having a combined balance of cloe to 30K outstanding. I had always paid more than the minimum monthly payment until the minimum went from averaging around $350/mo to a combined whopping $800/mo. And RISING!
For the record, I am a long-term customer of Bank of America. Carrying everything from savings and checking (business and personal) accounts to investments, Certificates and major credit cards.
Last year, I applied for and was turned down by Bank of America for four different home-equity-type loans, even though I have sufficient equity in my home, to consolidate bills and lower my monthly payments after expenses relating to the illness and subsequent death of my mother, followed by a rash of necessary home repairs necessitated using up the last of my savings (cash-flow insulation.) and I am now faced with the following options: bankruptcy, giving up my business, yanking my daughter out of college and/or possibly losing or beng forced to sell my home.
Is this fair or even legal business?
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