Bank of America (NYSE: BAC) will be the next in an increasingly long line of financial institutions to make its credit card terms less favorable to consumers and will be raising interest rates or minimum payments on up to 4 million customers that do not pay off their balance monthly, according to a new report from CreditLoan.
The Charlotte, North Carolina-based bank says that the changes will effect less than 10% of their customer-base worldwide. The company announced at any cardholder with a balance on their credit card who had an interest rate below 10% would likely see their rate move upwards beginning in June.
Some cardholders will have the option of keeping their existing lower rate, but will not be able to make new purchases without their entire balance being reset to reflect the new higher rate.
New credit card regulations will prevent arbitrarily changing the terms on credit cards without announcing that possibility in writing, but those new regulations do not go into effect in 2010.
