April 2009 Archives
Or A Corporation's Primer on How to Lose a Customer
After accepting a reported total of $50.2 billion in tax payer funded bailout monies , Bank of America has found a very creative way of returning the favor to those tax payers who also happen to be customers of the company: increasing rates to levels usually associated with punitive measures for delinquent or "high risk" credit accounts. Given the current economic situation, where one of the most advocated ways forward is to increase spending, BoA has instead made credit card purchases more costly for their customers. While before the rate increase, a customer may have used the card as a legitimate way of financing large ticket items, now a card holder may show restraint and think, "can I really afford to finance this purchase at 18.99% ?" Probably not. In this blogger's opinion, while the rate increase may be legal and within the contractual bounds of the card holder agreement, it demonstrates a clear lack of corporate ethical conscience and disregards the needs of a nation.