If you are a Bank of America credit card holder, be on the lookout for a notice in the mail soon about a new penalty interest rate the bank is set to implement. BofA has not had a penalty interest rate on their cards since 2009 but it seems like the coast is clear for them to reinstate the penalty. Apparently most U.S. credit card lenders have already added penalty interest rates back to their accounts.
The assessment will begin on June 25th and it could be as much at 29.99% to customers who make their credit card payments late. This new rate would only apply to new purchases after the change is applied. Customers will receive a 45 day advance notice before receiving the penalty. I am one to believe it is okay to penalize abusers of credit but I hope the bank has a review policy for those good clients who inadvertently make honest mistakes because those are not uncommon.
The bank’s card unit recently reported that revenues in the first quarter of 2011 dropped to $5.6 billion from $6.8 billion a year ago. Gotta get it back up somehow.
This is the second penalty rate BofA cardholders are seeing this year. Earlier in the year BofA introduced an annual fee of $59 for some of its card holders. If you are one of the unlucky ones, you will see that fee on your May statement.