Beware of Bank of America No Fee Balance Transfers
Don’t believe everything you read in print. Or, in this case, on Bank of America’s web site. This recent post on FW recounts the problem. Essentially, several people have reported that although their credit card’s terms and conditions state that there should be no fee for balance transfers, they have been charged 3% with no cap. In particular, this seems to be a problem with the BofA Money Return Visa. Here’s the relevant text in question:
Transaction fee for Balance Transfers and Cash Advance Checks: None of each such cash advance (minimum $0 ).
This does nothing to suggest that the fee is actually 3% with no cap; while awkward, it does seem to suggest that there should be no fee. Compare this language to that on cards which do charge 3% with no fee (for example, the WorldPoints Platinum Plus MasterCard):
Transaction fee for Balance Transfers and Cash Advance Checks: 3% of each such cash advance (minimum $10).
To me, it seems more than reasonable to assume that the first card has no fee. Yet the reality is different. The awkward wording for the first card does suggest the possibility that some improper updating of the T&C’s is involved. However, that language has been used on their web site for at least a few months.
Given the potential ambiguity, you would hope that BofA would at least honor the no fee terms for customers who were honestly misled. It wouldn’t hurt to change the terms on their web site, either.
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BofA’s Motley Fool CC has 0% apr for 12 months on balance transfer with no transfer fee if the transfer is requested within the application.
However, after doing the balance transfer I was charged the 3% (without cap) transaction fee and when I disputed this with their phone rep, she asked me to show the proof on their web site. It was easy as the offer had not changed since I applied and they refunded the transaction fee.
Beware BofA. When I was unable to make online payments on time due to problems with their website, I talked to tech support and customer service who waived the late fees but neglected to tell me that they had upped my rate by over 12%. I didn’t find out until months later. Their customer service was curt, discourteous and unhelpful. I’ve never had a credit card company treat me so outrageously.
I believe this practice is illegal but most of the major credit card banks are doing it now. If they say 0% APR the 3% fee should be included. What kind of math comes up with a 0% APR when they are charging 3% on the entire balance? This FEE is Interest and everyone knows it. This is the Bush Administration NOT doing it’s job to enforce the Truth in Lending laws. I have successfully argued this issue with one of my Credit Card providers (not BofA) and they gave me the 0% rate for 12 months with only a $75 fee.
In my case the 3% would have been over $1,000.
Lenders who violate the truth in lending laws should be brought to the Attorney General’s office of every state in the Country. The only reason this practice has evolved is because it’s going unchallenged!