This Gold Option Loan was marketed as a fixed rate loan for X number of years at X percent. Maybe it stated in the fine print in the marketing material that it was a credit line, but we didn't see that. Perhaps the print was too fine.
When the economy started to go south BOFA sent us a letter stating that this fixed rate LOAN was now going up to 28.99% interest rate or there about. We had never been late or missed any payments.
Next month another letter comes telling us to disregard the first letter and that the bank would not be charging a higher interest rate on that fixed rate loan. I ignored the first letter, figuring that it was a typographical error and they could not possibly charge us an interest rate like that. If they had, we would have been pushed to default.
It turns out that the "Loan" was a credit line that was unsecured. However; we also received a letter prior to the rate charge hike, stating that if we took any advances on this FIXED RATE LOAN that we would be charged a higher interest rate. So how is it a fixed rate loan if they can charge whatever they want?
On the website where we make our monthly payment it says GOld Option Loan. It also says the amount of credit available is $X amount. But how is it available when we can't transfer it to a checking account or take any cash advance on it. They took that away from us. They no longer provide access checks to the money or the ability to transfer it to another bank, so there isn't a way to take cash out. Confusing since it still says credit available and the so called credit line goes up every month as we make a payment and reduce the debt.
We have other credit cards with BOFA and always pay more than the minimums and pay on time each month. Have never been late. Yet they pulled in my husbands line of credit with his credit card right before the new laws (card act) went into effect.
Is there any class action lawsuits out there regarding the Gold Option Loans that were marketed to consumers. It appears it is not a fixed rate loan and the way they have the finance charges structured it seems to be a loan at 50% not the 13.99% marketed and sold to us. Is this rate of intrest compounded hourly?
We have been paying on this loan for years now. The original loan was for $26,500 and now it's about $18,400. I think if they reduced the interest rate it would be beneficial for both us and for BOFA. It would allow us to pay off the loan quickly and BOFA would have less defaults if they worked with their customers.
I feel it was predatory at the very least. No class action lawsuits out there on this or has everyone defaulted already?
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