I have a credit card through Bank of America with a credit line of $50,000. Last year, Bank of America offered me a 2.9% promotional rate. I decided to use $47,000 of the line of credit to pay off expenses for remodeling a piece of rental property that we own. I knew the promotional rate was ending in January. What I did not know is that the regular rate that it would go to after January was 24.99%.
When I received my January statement and learned of the new interest rate, I called and asked Bank of America if they would reduce it to a reasonable rate. They refused. I decided to pay it down as much as I could with other credit that I had available to me. On January 23, I sent Bank of America two checks, one for $15,000 from my First Credit Union line of credit and one for $10,000 from my Discover Card line of credit.
On March 5, I received a letter from Bank of America dated February 26 which stated that they rejected my payment because a cash advance check from this or another account issued by FIA Card Services was used to make the payment. The letter also stated that for my protection they had destroyed the check.
I Bank of America on March 5. I first received the automated system which told me that my outstanding balance was $47,000 meaning that they had not credited either of the two checks that I sent. I spoke to an account representative and a manager who told me that my First Credit Union credit card is issued by FIA Card Services and I can't use their money to pay them back. The manager also told me that since they never credited the Discover Card check, they probably destroyed it along with the First Credit Union check. He told me that I should not have put both checks in the same envelope; I should have sent them separately. I told him that was absurd and I should not be blamed for their incompetence.in addition, their rule that I can not use my First Credit Union line of credit, which is at 7% to pay off the Bank of America balance which is at 25% has no purpose other than to keep charging an outrageous percentage rate.
The promotional rate that Discover was offering for the $10,000 check was only available through the end of February. Thus, unless Discover sends me new checks and another offer, I can not replace the $10,000 check that Bank of America destroyed.
Bank of America is engaging in predatory lending practices in offering $50,000 at 2.9% without making it clear that the rate would change to 25% when the promotion expired. FIA Card services is engaging in predatory lending practices by refusing my payments toward my balance. Further, FIA or Bank of America literally threw away my tendered payment from my Discover Card credit line.
The manager refused to extend any courtesy to me whatsoever to address any of the issues caused by their actions.
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