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BoA to close credit cards for approximately 60% of customers?

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  • BoA to close credit cards for approximately 60% of customers?

    BoA to close credit cards for approximately 60% of customers?

    "I work in Credit Department at BoA (Senior Level Credit Analysist Boa Bldg 3rd fl, Char, NC). We just received memo indicating that all BoA credit cards are being closed as of 10/1. Credit score and income do not matter, all accounts are closed as of 10/1." Executive VP Bank of America

    "This is true, but not as bad as he/she says. We are closing accounts, but only ones with credit scores under 750. We will reopen cards within a year as long as crisis lessens." - J.mcmanus / VP Credit Dept BOA

    iReport Sept. 28, 2008

    AntiSpin: We do not have independent confirmation but if true the event is significant – the number of credit card holders with scores under 750 is 60% percent of the population.

    FICO Range (percent of the population)
    300-499 (2%)
    500-549 (5%)
    550-599 (8%)
    600-649 (12%)
    650-699 (15%)
    700-749 (18%)
    ----------------- 60/40
    750-799 (27%)
    800-850 (13%)

    (Thanks Sapiens and Metalman)
    Ed.

  • #2
    Re: BoA to close credit cards for approximately 60% of customers?

    Originally posted by FRED View Post
    BoA to close credit cards for approximately 60% of customers?

    "I work in Credit Department at BoA (Senior Level Credit Analysist Boa Bldg 3rd fl, Char, NC). We just received memo indicating that all BoA credit cards are being closed as of 10/1. Credit score and income do not matter, all accounts are closed as of 10/1." Executive VP Bank of America

    "This is true, but not as bad as he/she says. We are closing accounts, but only ones with credit scores under 750. We will reopen cards within a year as long as crisis lessens." - J.mcmanus / VP Credit Dept BOA

    iReport Sept. 28, 2008

    AntiSpin: We do not have independent confirmation but if true the event is significant the number of credit card holders with scores under 750 is 60% percent of the population.

    FICO Range (percent of the population)
    300-499 (2%)
    500-549 (5%)
    550-599 (8%)
    600-649 (12%)
    650-699 (15%)
    700-749 (18%)
    ----------------- 60/40
    750-799 (27%)
    800-850 (13%)

    (Thanks Sapiens and Metalman)
    This sounds like Bank of Countrywide trying to help Paulson muscle through the bailout package...:rolleyes:

    Comment


    • #3
      Re: BoA to close credit cards for approximately 60% of customers?

      Consider the impact of, oh, let's say 50% of the consumers suddenly one month more behind in debt. Shutting off credit cards is a really quick way to crash the economy. Imagine the retail Christmas season with half the consumers using cash. Believe me, it will be bad enough with credit cards. Imagine just about everything including the extra mortgage defaults as a result of people on the edge falling over from the additional month of debt. I suspect they are not serious.

      Could it be a ploy to block this bill that made it through the house 9/23?

      HR 5244, "The Credit Cardholder's Bill of Rights Act," passed the House 312-112, with 228 Democrats and 84 Republicans voting to support it. 111 Republicans and one Democrat voted against the bill, which now goes to the Senate.
      In this government controlled by shadowy lobbyists, it is refreshing for once to see a little outright extortion or blackmail for a change. It is the spice that livens up those dull, dry, economic bail-outs. It's just business, after all.

      Or, when Oct. 1 comes without Senate passage, that nasty rumor is just denied ... how could we EVER cut off credit like that!!!

      Comment


      • #4
        Re: BoA to close credit cards for approximately 60% of customers?

        I think you may well be right! Lots of financial blackmail going on right now!

        We're being blackmailed into accepting the responsibility and debt for the worst managed financial institutions in the history of this country. The starting price, our debt, is $700 billion dollars.

        What's really about to happen is that the failed financial institutions will be rewarded for their bad behavior. As a result, they and others will be encouraged to do it again. It's just a matter of time.

        We're under the gun and told that we have just days to make a decision to bailout these mismanaged entities. The last thing they want is an open hearing on the problem. Deliberation is deadly for them.

        We're told that our world will collapse; there will be a systemic breakdown if the president's bailout legislation is not passed. Without it, we'll all be eating stale beans and rice for the rest of our lives.

        How do you argue with a premise like that - vote yes and you get a chance to live. Vote no and you'll be soon living in a cold house or damp shelter, if you're lucky enough to be off the street.
        .
        .
        .
        Also Michael Moore - The Rich Are Staging a Coup This Morning

        Friends,

        Let me cut to the chase. The biggest robbery in the history of this country is taking place as you read this. Though no guns are being used, 300 million hostages are being taken. Make no mistake about it: After stealing a half trillion dollars to line the pockets of their war-profiteering backers for the past five years, after lining the pockets of their fellow oilmen to the tune of over a hundred billion dollars in just the last two years, Bush and his cronies -- who must soon vacate the White House -- are looting the U.S. Treasury of every dollar they can grab. They are swiping as much of the silverware as they can on their way out the door.

        No matter what they say, no matter how many scare words they use, they are up to their old tricks of creating fear and confusion in order to make and keep themselves and the upper one percent filthy rich. Just read the first four paragraphs of the lead story in last Monday's New York Times and you can see what the real deal is:

        "Even as policy makers worked on details of a $700 billion bailout of the financial industry, Wall Street began looking for ways to profit from it.

        "Financial firms were lobbying to have all manner of troubled investments covered, not just those related to mortgages.


        "At the same time, investment firms were jockeying to oversee all the assets that Treasury plans to take off the books of financial institutions, a role that could earn them hundreds of millions of dollars a year in fees.

        Comment


        • #5
          Re: BoA to close credit cards for approximately 60% of customers?

          Google does not return any results except the ireport link posted above and now, itulip link. But, if the news is correct, probably they learnt their lesson and are closing CC accounts in preparation for the next tsunami to hit the streets ? :rolleyes:

          Here's a twist (4-Sept 2008):

          http://consumerist.com/5045620/boa-r...d-10-years-ago

          At Bank of America, your accounts are Buddhist. As in, undergoing "eternal return," where accounts that have been closed and passed on will reemerge, rejuvenated, reopened, even if you closed them long, long, ago.

          Comment


          • #6
            evidence it's a false rumor

            Originally posted by vdhulla View Post
            Google does not return any results except the ireport link posted above and now, itulip link. But, if the news is correct, probably they learnt their lesson and are closing CC accounts in preparation for the next tsunami to hit the streets ? :rolleyes:

            Here's a twist (4-Sept 2008):

            http://consumerist.com/5045620/boa-r...d-10-years-ago

            Yes, it looks like it is FALSE, I just read this excerpt on the internet about it:

            "BOA just told me this rumor is false. It was extremely weird, though. He had to get off the phone, put me on hold, and ask someone. Then, he told me he could not specify anything else - but the rumor was most definitely false."

            http://ficoforums.myfico.com/fico/bo...read.id=118385

            Comment


            • #7
              Re: BoA to close credit cards for approximately 60% of customers?

              ...yeah false as in they are only closing it for 58%!!!

              Comment


              • #8
                Re: BoA to close credit cards for approximately 60% of customers?

                Orson Wells is on the local college radio station reporting on an alien invasion along the east coast!!!!

                RUN FORREST, RUN!!!!

                Comment


                • #9
                  Re: BoA to close credit cards for approximately 60% of customers?

                  Originally posted by David_Brent View Post
                  Orson Wells is on the local college radio station reporting on an alien invasion along the east coast!!!!

                  RUN FORREST, RUN!!!!
                  Fed Funds spread signals crash!!!

                  RUN FORREST, RUN!!!!

                  Glad I did. iTulip never talks about crashes, so when they do...

                  Comment


                  • #10
                    Re: BoA to close credit cards for approximately 60% of customers?

                    Originally posted by Ann View Post
                    Fed Funds spread signals crash!!!

                    RUN FORREST, RUN!!!!

                    Glad I did. iTulip never talks about crashes, so when they do...
                    Stupid is as stupid does little girl, but i am running to where i am not sure

                    Comment


                    • #11
                      Re: BoA to close credit cards for approximately 60% of customers?

                      Originally posted by RickBishop View Post
                      Stupid is as stupid does little girl, but i am running to where i am not sure
                      my read is she says she 'ran' in july. you're saying she's stupid for that?

                      running before a 1000 point decline doesn't strike me as stupid. or am i missing something in your comment?

                      speaking of day traders, where's jim?

                      Comment


                      • #12
                        Re: BoA to close credit cards for approximately 60% of customers?

                        Many Lenders Lower Credit-Card Limits

                        "Most banks are cutting their credit limits," says Carol Kaplan, spokeswoman for the American Bankers Association. "They're doing it to everyone."

                        WSJ - 09/30/08
                        Ok, but I don't have a great FICO score and the small limit on one of the credit cards that I keep around doubled as of today.
                        Last edited by Slimprofits; 09-30-08, 12:33 AM.

                        Comment


                        • #13
                          Re: BoA to close credit cards for approximately 60% of customers?

                          Originally posted by metalman View Post
                          my read is she says she 'ran' in july. you're saying she's stupid for that?

                          running before a 1000 point decline doesn't strike me as stupid. or am i missing something in your comment?

                          speaking of day traders, where's jim?
                          wrong, never have been a day-trader, Never!

                          I'm in cash US$ 75%, and have been since 9/17/2008
                          Jim 69 y/o

                          "...Texans...the lowest form of white man there is." Robert Duvall, as Al Sieber, in "Geronimo." (see "Location" for examples.)

                          Dedicated to the idea that all people deserve a chance for a healthy productive life. B&M Gates Fdn.

                          Good judgement comes from experience; experience comes from bad judgement. Unknown.

                          Comment


                          • #14
                            Re: BoA to close credit cards for approximately 60% of customers?

                            New York Times - June 21, 2008

                            Banks Trimming Limits for Many on Credit Cards

                            Banks that issue cards like Visa and MasterCard, as well as the American Express Company, are cutting the limits for customers who have run up big debts, live in areas that have been hit hard by the housing crisis or work for themselves in troubled industries.

                            [..]

                            Credit card lenders are also culling their accounts ahead of new rules that are intended to benefit consumers but could limit the profits on customers deemed bigger risks.

                            [..]

                            Washington Mutual cut back the total credit lines available to its cardholders by nearly 10 percent in the first quarter of the year, according to an analysis of bank regulatory data. HSBC Holdings, Target and Wells Fargo each trimmed their credit card lines by about 3 percent.

                            Among those four lenders, that amounts to a reduction of about $15 billion in three months. Over all, the amount of available credit for the industry appears to be about flat, with the three biggest issuers — Bank of America, JPMorgan Chase and Citigroup — slightly increasing their overall credit lines. But even they are trying to rein in risky individual accounts.

                            [..]

                            American Express is reducing credit lines for customers holding subprime mortgages and small-business customers in industries tied to the real estate market. And Chase Card Services, the consumer arm of JPMorgan, is taking similar action on distressed borrowers, especially in places like California, Arizona and Florida, where home prices have declined sharply.

                            Washington Mutual, HSBC, Target and Wells Fargo all acknowledged they were pulling in lines of credit as part of broader strategy of reducing risk.
                            None of those lenders, as a matter of policy, would comment on individual customer accounts.

                            [..]

                            Meredith Whitney, an Oppenheimer banking analyst, said the impact of the recent regulatory proposals on lender profits could be so severe that she expected the industry to pull back $2 trillion in outstanding credit lines by 2010. That would be a 45 percent reduction in credit currently available to consumers.
                            edit: Ms. Whitney was referring to this: May 2, 2008 Federal Reserve proposes rules to prohibit unfair practices regarding credit cards and overdraft services
                            Last edited by Slimprofits; 09-30-08, 02:41 AM.

                            Comment


                            • #15
                              Re: BoA to close credit cards for approximately 60% of customers?

                              Originally posted by babbittd View Post
                              New York Times - June 21, 2008

                              Banks Trimming Limits for Many on Credit Cards



                              edit: Ms. Whitney was referring to this: May 2, 2008 Federal Reserve proposes rules to prohibit unfair practices regarding credit cards and overdraft services
                              BoA just raised my limits on my cc...

                              Comment

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