Bank of america hikes interest for existing promotional balance transfer offer

kittu235

Hi,
I do not know if this is the right place to post this .

3 months ago, I accepted a promotional balance transfer offer (The offer is 1.99% Until my billing date in October, 2009) from Bank Of america and paid $1200 transaction fee(3%) for a 40K balance transfer.

I have been paying my bills on time and never missed a payment.

I received a letter yesterday from the bank indicating that the rate for my transfer will go up to bank prime + 12%( Currently 16%) beginning the first day of the billing cycle in May

The reasons cited are
1) Current market conditions
2) My pattern of payments

Is this legal for the bank to do this for a promotional APR after charging me 3% upfront?
Is there anything I can do?

Any advice is appreciated
Krishna

Hazzanet

Sounds like you're from the US so it's probably best you post this question on a US based message board (this is for the UK).

That said, I would suggest that the credit card agreement has a clause in that says that they can vary the terms and conditions giving you thirty days notice, and some of this depends upon the promotional literature associated with the initial balance transfer. You need to look at what you signed up for to determine whether BoA is within its rights to amend the interest rate.

HTH