lilq Posted January 5, 2010 Report Share Posted January 5, 2010 I found this article on Huffington Post and thought it was interesting.Ben Pavone told Bank of America in a letter last week that he refuses to pay off his credit card debt until the bank lowers his interest rate. And, he added, if they try to ruin his credit, he'll sue 'em."They've got to have some kind of obligation to not totally extort the public," said Pavone.The San Diego, Calif. attorney is angry about two things: his interest rate, which has gone up to 27.99 percent, and his credit limit, which has gone down to just above his balance. "I'm sure I'm going to be hit with penalties," he said. Pavone said he got "squeezed for cash" and asked Bank of America to raise his credit limit in October. The bank responded with a two-page letter. The first page declined the request; the second told him his limit would be reduced from $32,100 to $30,400. Bank of America cited "economic trends" in both decisions."I consider your action an anticipatory repudiation of the contract and am treating you as in breach," he wrote in a Dec. 31 letter to the bank. "I am therefore not paying the money that is currently due on January 3, 2010 out of protest."And this:Bank of America does not comment about individual customers. Regarding credit limits, a spokeswoman wrote, "In general, we monitor accounts for risk and may adjust customers' lines up or down as appropriate based on the risk profile and performance with us."Ed Mierzwinski, program director for consumer advocacy group U.S. Public Interest Research Group, told HuffPost that Pavone's got the right idea -- it would be easier for the bank to cut a deal with Pavone than to deal with him in court, which is a distinct possibility since the bank abandoned mandatory arbitration in the fall. "The banks respond to the squeaky wheel," wrote Mierzwinski in an email. "ANY consumer who complains has a better chance than those who do not."As for the legal theory of Pavone's possible lawsuit, consumer law experts say he just might have a case. Pavone said a possible suit would allege unconscionability. When jacking up interest rates, credit card lenders typically provide notice and an opportunity for cardholders to refuse the higher rate and settle their accounts at the current rate -- nothing unconscionable about that. But maybe Bank of America breached good faith by reducing the limit to a level that would likely incur fees and damage Pavone's credit report."Banks have done really well figuring out ways to screw people without making themselves legally liable," said Ira Rheingold, director of the National Association of Consumer Advocates. "I think [the limit reduction] is another example of Bank of America's venality. Whether or not it's a successful lawsuit, I don't know. Whether I think it ought to be challenged -- absolutely." Link to comment Share on other sites More sharing options...
BrokeBob Posted January 5, 2010 Report Share Posted January 5, 2010 I've got to keep this in mind. When I called BoA about trying to set up a hardship program, their reaction was to lower my credit limits, which sets up a situation in which it makes it easier for me to go over the limit after my alleged default. Link to comment Share on other sites More sharing options...
MG05 Posted January 5, 2010 Report Share Posted January 5, 2010 I bet this pissed off attorney runs BOA into the ground defending this one ... enough legal maneuvers and it could get very expensive for BOA! Might even find enough parties to start a class action … Good screw BOA … scumbags like the rest of them! Link to comment Share on other sites More sharing options...
trueq Posted January 5, 2010 Report Share Posted January 5, 2010 I'm a legal ax grinder X10 and I will litigate, reasonable or not, to the ends of the earth...buteven I can be bought off!I'm certain this attorney is even more reasonable than me!Its a nice thought about litigating BofA into the ground, but at some point, it is a cost/benefit analysis regardless of the principle involved. Link to comment Share on other sites More sharing options...
ShortBus Posted January 5, 2010 Report Share Posted January 5, 2010 Ugh... why doesn't he just close the account? Doing so would keep his interest rate at the previously set amount. As far as suing for ruining his credit... typical lawyer BS. If he doesn't pay as agreed, he'd be delinquent and BoA would be reporting accurate information. As mentioned in the article, the guy is strapped for cash. He's just trying to get out paying his debt by flashing his lawyer business card and throwing a hissy fit. Link to comment Share on other sites More sharing options...
MG05 Posted January 5, 2010 Report Share Posted January 5, 2010 Throw all the hissy fits he wants ... I love seeing BOA and these scum in court! It only takes one crusade to change the world! I don’t care what card he throws … Link to comment Share on other sites More sharing options...
admin Posted January 5, 2010 Report Share Posted January 5, 2010 Ugh... why doesn't he just close the account? Doing so would keep his interest rate at the previously set amount. As far as suing for ruining his credit... typical lawyer BS. If he doesn't pay as agreed, he'd be delinquent and BoA would be reporting accurate information. As mentioned in the article, the guy is strapped for cash. He's just trying to get out paying his debt by flashing his lawyer business card and throwing a hissy fit.I agree. Link to comment Share on other sites More sharing options...
MG05 Posted January 5, 2010 Report Share Posted January 5, 2010 I agree.You both are correct ... but it is fun watching someone else in court! LMAO Link to comment Share on other sites More sharing options...
BrokeBob Posted January 5, 2010 Report Share Posted January 5, 2010 OK, so the guy is another jerk lawyer. What if he wins? Things could get VERY interesting. Link to comment Share on other sites More sharing options...
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