One San Diego attorney isn't giving up his credit limit without a fight. A report in the Huffington Post profiles Ben Pavone, a Bank of America accountholder who uses a high limit credit card to smooth out the cash flow for his legal practice. When Pavone requested a slight increase to his credit line during the holidays, Bank of America responded by lowering his limit to within a few hundred dollars of his balance.
Pavone told HuffPost's Arthur Delaney that the lender cited overall economic conditions as the reason for the limit reduction. At around the same time, BofA hiked Pavone's interest rate to above 27%. Therefore, Pavone has issued a statement of his own to Bank of America: he refuses to pay any part of his balance until the lender returns his interest rate to its original 10.99%.
Legal experts say that Pavone may have a case, since Bank of America's changes did not come with an opportunity to negotiate terms. Although a right of rescission is guaranteed for consumers under the Credit CARD Act after February 22, a judge could still rule the new terms "unconscionable."
About the Author
Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.