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My BofA (formerly MBNA) CC company sent me an ammendment notice.

From ammendment statement--
Minimum Finance charge for Periodic Rate Finance charges in all balance categories is less than 1.50, then a minimum Finance Charge of $1.50 will be assessed on the account in lieu of any Periodic Rate Finance Charge.

We added a Minimum Finance Charge to you account primarily due to a change in our business practices.

--

I guess I just need to make sure I don't have small balances left on my BofA CCs, that would trigger $1.50 Finance Charges. Looking back on my CC spreadsheets, I see it would have triggered five times in the last 2.5 years (once in the past year)



Hohum

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My BofA (formerly MBNA) CC company sent me an ammendment notice.

I currently have a BofA (formerly MBNA) Mastercard. Does this mean that if you have a CC balance of $1.50 or less you'll get charged $1.50??

Gio
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In any month that a finance charge applies and the finance charge would be less than $1.50, the finance charge is increased to $1.50. The interest rate determines the average daily balance required for this to be triggered. At 12% annual rate, it would take a $150 average balance to trigger the minimum finance charge.

Debra

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Not on CC balance, it is on Finance Charges.


In my case, I was thinking, "that hardly happens with me" until I went and checked my records over the two years, and realized

5 times/(27 * two cards) = 5/54 = ~9.3% of the time

... a lot higher than I originally expected :(


The occurrences from 2 years ago were each under a dollar of finance charge, so each of those would have triggered the charge. I have to go back and verify actual MBNA statements to determine for sure, but I think those were Finance Charges on a 0% BT Transaction Fee. If so, that's just a sneaky way for BofA to capture more fees via BT transactions.



Hohum
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The occurrences from 2 years ago were each under a dollar of finance charge, so each of those would have triggered the charge. I have to go back and verify actual MBNA statements to determine for sure, but I think those were Finance Charges on a 0% BT Transaction Fee. If so, that's just a sneaky way for BofA to capture more fees via BT transactions.


Hohum



Data confirmed.

My monthly Finance Charges were from the BT transaction fee.



Hohum


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My DH got a letter saying something like that -- it's his former MBNA card. In the small print he found a sentence that said you could write them a letter refusing the amendment and your old terms would apply. You may have gotten a different letter, but it's worth a closer look.

-YB-
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much as I dislike BofA, i find it hard to get worked up over $7.50 over 2 years.
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My DH got a letter saying something like that -- it's his former MBNA card. In the small print he found a sentence that said you could write them a letter refusing the amendment and your old terms would apply. You may have gotten a different letter, but it's worth a closer look.

Look at the results before refusing the new terms. Refusing the terms allows for sometime to pay off the account under the old rules, but probably will result in the account being closed.

Debra
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much as I dislike BofA, i find it hard to get worked up over $7.50 over 2 years


It's not the amount for me either, it's the principle. BofA already makes lots of money upfront off the transaction fee...the one that was once no fee, then $15, then $25, then $35, then $50, then $75, then $90. Okay, so I just don't do BTs with BofA, but you know there are going to be CC copycats. Just like the transaction fee, the minimum finance charge wil likely take the same trend ... $1.50 BofA today, $2 with CC company A tomorrow, $3 with CC company B after that, etc.


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It's not the amount for me either, it's the principle. BofA already makes lots of money upfront off the transaction fee...the one that was once no fee, then $15, then $25, then $35, then $50, then $75, then $90. Okay, so I just don't do BTs with BofA, but you know there are going to be CC copycats. Just like the transaction fee, the minimum finance charge wil likely take the same trend ... $1.50 BofA today, $2 with CC company A tomorrow, $3 with CC company B after that, etc

Banks make some money off of the upfront fees. They don't make alot of money off the transaction fees. When you have credit card debt, you have surrended control of your finances to credit card companies. When debt free and the balance of power is in your hands, the games credit card companies pull are annoying but they don't have control.

Anyone's whose major concern with a credit card is the minimum finance charge is in a position to eliminate finance charges. It would seem that the more abusive credit card companies become the more motivation there would be to be debt free, but that logic doesn't seem to apply. Those who post/read this board are self selecting with a goal to be debt.

Debra
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Wow! Debra, I wish I could make your statement appear in flashing lights! It would startling to see it appear on the back of credit cards as a warning: The Blah Blah has determined that when you have credit card debit, you have surrended control of your finances to credit card companies.



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Anyone's whose major concern with a credit card is the minimum finance charge is in a position to eliminate finance charges. It would seem that the more abusive credit card companies become the more motivation there would be to be debt free, but that logic doesn't seem to apply. Those who post/read this board are self selecting with a goal to be debt.

Debra





I hope your last sentence meant to say ..."with a goal to be debt free or free of debt" :)







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The borrower is slave to the lender.


""When you have credit card debt, you have surrended control of your finances to credit card companies.""
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I hope your last sentence meant to say ..."with a goal to be debt free or free of debt" :)

I have no idea how "free" vanished from my statement.

Debra
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With all the mail I've been getting from B of A previously known as MBNA, I'm glad I have no balance on my MBNA or B of A cards.
(but some of them are PRETTY so I can save them merely for the collectible value...and not use them.)

joycets
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