Bank of America - Platinum Visa Review

Some of you may know that I spent over a quarter century working for some very, very, large banks.  But my experience had little to do with consumer banking.  I was much more at home in the area of International Financial Witchcraft.  I admit it.  I was very, very, good at it.  And, if I was still there today, you might in fact have gotten the opportunity to see me in a "perp walk" on CNN or MSNBC.  Hey!  But you all know I'm a changed man.  Hell!  These days I'm even Green, albeit Conveniently Green.  But that's a subject for a different review.  We're here today to take a look at Bank of America Platinum Visa.

A Little Background

Going back a few decades, you'll recall that commercial banks were for businesses while savings banks and credit unions were for individuals.  The reasoning for this really is quite simple.  Due to usuary laws and other impediments, the profits to be derived from consumer banking sucked from the point of view of a commercial bank.  We were much more content raping and pillaging, large corporations, institutions and even governments.  Yes, life was good!

But things started changing.  Bank of America launched the first bank charge card in Fresno, CA in 1958.  You now know this card as Visa.  Back then it was a small affair.  But in 1965, B of A started franchising the card.  Well, like sharks sensing blood in the water, a competitive group of banks launched MasterCharge the very next year to cash in on this new market.  You now know this card as MasterCard.

Things were still under some kind of control (we did have anti-usuary laws after-all) until March 31, 1980 when President Jimmy Carter signed the Depository Institutions Deregulation and Monetary Control Act into law. (Jimmy, Jimmy Jimmy!)  Essentially, this piece of legislation gave banks the right to charge any rate they wanted to to anybody at anytime.  Sounds like loansharking doesn't it.

This bill had an advantage that La Cosa Nostra didn't enjoy.  There was no need to take an Oath of Omerta (The Blood Oath).  Bankers hate the sight of blood, especially when it's their blood. The sharks were indeed let loose.

So Just the Other Day

My delicious Veronica showed me a letter from Bank of America announcing that it was increasiing (actually doubling) the rate of interest she was paying for her three Platinum Visas.  Effective the next month, gone was her preferred interest rates of between 6.99% - 7.99%.  The rate was going to be 13.99%.  Was there a credit problem?  Nope.  Veronica enjoys an average FICO score of 790.  To put that in perspective, your Lord & Savior couldn't manage a 790.  There was that thing in his report about using collections for the poor for "mir for his hot forehead" (see Andrew Lloyd Webber about that one.)

Do Something Rudi, Do Something!

I don't know, maybe she thought I could call in an old debt (see The Godfather).  I told her that these were her cards.  They wouldn't talk to me.  She went off in a huff, probably looking for Luca Brazzi.  (She never did she the end of that film.)  She cooled down and I told her to call Bank of America.

"No, it's not you Mrs. Xeno"

Well, it seems, according to the customer service representative, that there was indeed nothing wrong with Veronica's credit report.  "we're doing this to everybody.  It's because of what's going on in the economy."  Hearing this, I got on the phone.

"What's going on in the economy?' I asked.  "You know, the recession and all", she answered.  That caused me to coil and prepare to strike.  I patiently explained to this innocent, ignorant young girl that her bank had received $35 Billion in TARP funds to restore liquidity to her bank in order that it could begin lending again.  Veronica and I helped supply that funding (as did all of you).

This was to help stimulate spending and the economy.  How is doubling the cost of Veronica's borrowing going to stimulate her spending?  "Well, you can pay off and close the account at 6.99%".  So, I pointed out that this would just reduce credit availability by $75,000.  "And that stimulates the economy how?" I asked.  She got her manager on the phone.

Okay, let's cut to the chase.  After a little haggling we compromised at 9.99%.  "I'm sorry, this was all a big mistake", I was assured.  Indeed!

How'd You Do That?

It's simple actually.  All you have to do is call up and ask. (Do have at least a decent credit report).  See, the credit card business, like all business is a numbers game.  Send out 1MM of these notices and 500,000 don't even notice them, thinking them just junk mail.  Roughly 400,000 simply swear under their breath.  Perhaps 50,000 make a call and just take whatever answer they're given (and then swear under their breath).  The final 50,000 (it could actually be less) call and get a somewhat better deal.  See?  The Bank wins big, hardly breaking a sweat.

What to do?

You still need to ask?  Call your bank or card provider.  Be persistent, but be polite.  Ask for a manager and suggest a compromise.  Now wasn't that easy?

When you're finished with the call go to whitehouse.gov and report this to the President.  I do so love that site.

Regards,

Rudi