The power of YouTube…
Last week we mentioned a video we found (I still don’t recall how I stumbled upon it) (Sep 17: YouTube – Debtors Revolt Begins Now) in which a woman goes on a relatively discerning rant on the actions of credit card companies, in terms of unilateral rate increases. Well, apparently this video spread like wildfire and it caught the attention of some top honchos at oligarch Bank of America (BAC).
The Huffington Post reports from there:
Two weeks ago, Ann Minch of Red Bluff, Calif. announced in a YouTube video that she’d launched a one-woman “Debtors’ Revolt” and would refuse to pay off her credit card balance after an unfair interest-rate hike. Now, after her video made a huge splash, Bank of America has agreed to reduce her rate.
Minch said in a video posted Saturday that a Bank of America executive contacted her on Friday. “He asked me to talk a little about my personal financial situation so we can negotiate some kind of agreement in regard to my existing credit card account,” she said. The executive “tried to get me to agree to 16.99 percent and I said, ‘No, nope, I believe because you guys are getting your money from the Fed at zero percent interest… that 12.99 percent is a more than generous profit margin for you guys.’ So he did finally agree to that and he also agreed to send me that in writing.” (Her rate had been 12.99 percent for a long time before it shot up this year.)
Minch’s first video has been viewed over 240,000 times. After the Huffington Post featured the 46-year-old stepmother of two in a story, she found herself inundated with media requests from the likes of NBC, CBS, Fox News and also a local reporter. (emphasis added)
Nice work Ann, unfortunately such shock and awe tactics only work a few times, because the 3rd, 4th, or 5th person who tries this won’t capture the public’s (nor media’s) attention. So to quell the peasantry, it is right for the oligarch to smile and go along with the 1st rebel (perhaps 2) and then once the public’s attention reverts back to Dancing with the Stars, continue your ways. Well played Bank of America.
What is hilarious is the Bank of America executive’s reason for the raising of the rate was completely arbitrary versus what the customer rep told her a few weeks ago. We know the truth sir – you are raising rates across the board ahead of new regulations coming in 2010. You just won’t admit it… parry, thrust, deflect, and profit.
p.s. somehow Karl Denninger got a plug at the end of her newest video – what a small, small world… after all.
Bank of America offers credit to illegal Mexicans based on Mexican Consular ID, one must wonder what interest rate Mexicans are paying and how bail out money went south of the border.
Geeze, blame Mexicans? I think it has more to do with all that stupid lending and “subprime mortgage” fiasco. I’d like to add that Mexicans consider 20% APR a bargain interest rate … go figure what interest rates are in Mexico. Stop blaming other people for your own mistakes!!!
jg youre right on the money
Personally I could`nt care less for Mexicans or Mexico but to blame them for America`s greedy Banks and financial Institutions is a sign of how many stupid. ignorent “Mental Midgets” are here commenting…We have ourselves to blame as we are the worlds number 1 crybabies..”Racism” is am excuse to let La Raza nonsense exist…
Nuff said…
Bank of America offers free checking with a $9.98 service charge, did I say free well that’s the offer, that’s the offer that doesn’t last long. I use them by paying my credit card off in 1 or 2 months max. I will soon stop banking with them in the near future, just because of that $120.00 a yr. they rob from me.
I am boggled more people don’t use their local credit union or banks. Unless you travel countrywide very often I don’t see the point in handing money to these folks who dominate the political and business function.
I’ve been with same credit union for 20 years and they never needed a bailout nor do I get usurious fees thrown at me — however I have to drive some 6 miles to get to a branch. Apparently that is over the top ;)
Credit unions are the way to go. I’m getting 4% interest from my credit unions checking account as long as I meet three requirments each month. Have a direct deposit, stay signed up for e-statements, and make 12 POS transactions per month. Easy as pie and I get 4% on $20,000. you can’t beat that now anywhere.
Bank of America offers credit to illegal Mexicans? what kind of racist remark is that! this person went over her head in credit debt and it got to a point where she could not pay it because of the high interest rate? and now she begged for help? How many of us are in that same boat. and she’s not even (Mexican)she is Asian!!!!!!
keep blaming the “Mexicans”…
I hate Traders in stocks/bondage money…
Go away.
We got a letter from B of A two weeks ago telling us they were raising our interest rate from 10.99% to 27.24% because I paid online ONE day after the payment due date. We have had this B of A credit card for over 5 years and have spent 10s of thousands of dollars and have always paid on time and now that we are one day late past the due date they are increasing our rate. I just sent them a message requesting that Jeff Crawford or someone authorized to discuss our situation contact me immediately. I’m curious to what their response will be.
Read more at: http://www.huffingtonpost.com/2009/09/21/ann-minch-triumphs-in-cre_n_293423.html
I’ll tell you what their response should be… “Read your terms and conditions!” When you opened your CC over 5 years ago you entered into a binding contract that said if you’re late on your payment, we will increase your rate. Period. Did you not realize that’s how credit cards work. Why is everyone so surprised that they are held accountable to the contracts they enter into. Dont forget that over the last 5 years you’ve spent 10s of thousands of dollars that you did NOT have. must be nice to get things when you dont have any money. Lets not forget also that you can certainly call any representative at the bank and tell them you simply can’t afford the hike in your rate and they will gladly keep you at 10.99% but you have to shut the card down and pay off the balance at the rate you agreed to, and stop spending money you dont have. What happened to you is exactly what you agreed to when you signed your card. Read your T’s & C’s….
You are right, the banks have every legal right to increase rates – but it wasn’t necessarily the wisest thing to do at a time when our economy was very vulnerable. It doesn’t sound as though Ann Minch is neglecting her payment because of inability, so much as it is a decision to make a stand against unfair business practices. Unfortunately, the majority of Americans are very ignorant about financial matters and banks are certainly not rushing around trying to educate anyone. In the end, all of these individual decisions affect our collective economy – in other words – all of us, are affected by these choices. We all reap the benefits of a lucrative economy when everyone spends (even if we personally was conservative), and we all suffer when the majority can no longer do so.
I wonder just how powerful Bank of America would be if every man, woman, child, dog and cat took their money (what little any of us still have)and when elsewhere. I’ll bet they would whisle and different tune then. Sure would be interesting to find out wouldn’t it???
I went in to open a Bank of America checking account with a check for $20,000. The lady in the Bank talked me into putting it in a SAVINGS account, which she would connect to my Checking account. When I went home and mailed my mortgage 3 days later, the stupid idiot connected it to my Credit Card instead of my checking account, so the bank refused my check saying I had insuffient funds!!! When I went to Bank of America,they apologized profusely, called Wamu and told them it was THEIR Fault, to which Wamu stated, that’s to bad as I Still had to pay a late fee and other charges, Bank Of America paid the charges,but unbeknowst to me ,it ended up as a LATE payment on my credit report, which then caused ALL my credit cards to jack their interest rates up. The clincher came when Bank of America called me to tell me “DUE to the LATE payment on my mortgage payment they were LOWERING the amount of Credit they had given me on their Credit card! If it weren’t for their Stupity I wouldn’t have HAD a late payment at all. Now a year and a half later, I finally got the LATE payment REMOVED from my credit report,but Bank Of America and the other banks,won’t lower my rate back to where it was because they say “I’m not up for Review yet!!!” This is Bull!! I wasn’t up for REVIEW when they jacked UP my interest though it was NO fault of mine,but they won’t fix it even after I sent Proof of Bank Error!!! Any suggestions to fix this would be greatly appreciated!!
As a previous employee of financial sales – I know that you are not exaggerating. This is just one example of the type of tactics used by banks. This happens all the time. When the economy started slowing down about two years ago, banks started decreasing credit limits. I heard it from my clients and I had it happen to me. Even though I had never been late on a payment, nor had I charged anywhere close to my limit American Express started decreasing my credit limit after each monthly payment to the amount of the current principle. Granted, they did not increase my rate and so it didn’t affect me so much, but I could see what was happening in our economy, and I knew it would not end well. Limiting credit during a downturn in the economy is not a good idea. It is the opposite of “run on the banks”. The banks knew they had been too liberal in their lending practices for too long, and each bank wanted to stop the bleeding as quickly as possible. Thus – this actually fed our recession. We have some temporary “fixes”, but I think we have a long way to go for recovery and I won’t be pretty.
What I am trying to reason is the “why” the distance between consumer and business was allowed to grow to such length.
History will tell the “ruling class”, and don’t think this country doesn’t have one, what the final payment will be. Revolt!
I admire those people who have the strength and determination to stand up and call attention to thieves and liars, who think they are above reproach and the laws that govern “we the people.”
Robin Hood is coming back! This time we have a much faster form of communication and this one isn’t backed by corporate sponsored advertisement which brainwashes a person into submission.
This is in response to MORGAN and all you other ignorant consumers. Ann Minch is just like anyone of us, struggling in this economy and to throw fault at her because she can’t pay the minimum payment due to the enormous interest rate hike that Bank of America and all other Banks feel they can do just because it’s in the “Contract” is absolutely ridiculous.
Who are you people that are so pure and perfect? One day and hopefully not, but one day you may be in a predicament that you will feel is unfair and your voice will NOT be heard because of the lack of compassion you have for others.
I would love to Rally with Ann to the Supreme Courts to voice all concerns on how we as consumers are treated with no rights for concerns. The Banks have gone too far with this and know that they can take advantage with no repercussions, Shame on them.
Look I’ve had problems with credit card companies in the past. So by no means do I think they are always right but, this needs to be said we need to start taking responsibility for why the banks are doing this. when you sign up for a credit card you sign a contract or agree to the banks terms so if you break those terms you can’t complain if they raise your rate or give you fees. Ms Minch said herself in her follow up video that she was informed that she was late twice within a years time and by the banks terms they have the right to raise her rate. The real problem here is we as credit card holders need to read these terms and have to be responsible when we break the rules because guess what we used the banks money. Look I know people will say I work for the bank or I’m making excuses, neither is true like I said before I’ve had my problems with the bank and they do make mistakes and can be rude but that is their right because its their money I borrowed, key word borrowed. So if you want to really revolt start by making sure you know about how credit cards work read the terms before you take the money.
Jay, Do you know what Usury is? If signing an agreement was all that mattered then why are there laws against certain contractual terms? When two people are not equal in bargaining positions and one is far more sophisticated, then there should be limits on what can be inserted in the agreement.
You say it was banks money that was used by the borrower, which is nonsense. Banks create money out of thin air and lend it out for profit. When they fail they are bailed out by tax payers. How is that their money?