If you’re a Bank of America customer, your dander will definitely rise within seconds. The North Carolina-based bank said it could begin charging customers who miss a payment on their credit cards a higher penalty interest rate on future purchases, according to a recently published report.
The Wall Street Journal reports that Bank of America has begun telling its customers that it may apply the higher interest rates as soon as June. Moreover, the biggest bank by assets in the U.S. said it may charge as much as 30 percent on future purchase balances for some customers who miss credit card payments.
However, the rates will not be applied to every customer; according to BOA, a customer’s risk factors would be taken into account before he or she is penalized with the higher interest rate. What’s more, customers would receive at least 45 days notice before any rate increase takes effect; the rate would also only be applied to future purchases, not existing balances, a spokeswoman for the bank said.
According to analysts, BOA’s announcement is likely a reactionary move as the bank endeavors to squeeze revenue from its customers amid the threat of pending regulation from the Federal Reserve mandated by the Dodd-Frank financial reform bill. BOA has already started to charge some users for checking accounts as a means to recoup earnings it stands to lose from, among other areas, coming debit-card regulation.