Effective on the first day following your closing date that occurs on or after December 19, 2007, B of A is changing the timing of when they determine the prime rate for your credit card with a variable rate plan. The prime rate they select will be the highest prime rate during the preceding three months rather than the prime rate at the end of the month. Also, at varying times, starting in December and extending through January, B of A is going to change their definitions of various terms and how they compute your balance and increase some interest rate margin indices. They're also redefining their "Default Pricing" terms.

There's more....but the numbers look like this:

B of A is changing their rates for Cash Advances and some other defined transactions (for example, using your credit card for a cash advance at an ATM) from prime plus 8.25 % to prime plus 15.99%. B of A states that would currently mean an interest rate of 24.24%

Default...ie, two instances of not paying on time or exceeding your limit...they may default, without notice, your account to a variable default interest rate of prime plus up to 23.99 percentage points...or, they state, currently about 32.24%.

The margin on interest rates charged on standard purchases (for accounts in good standing) aren't increasing at the current time, though they reserve the right to do so. HOWEVER...with the change in how prime is computed, you'll likely be paying more than you previously would. The current economic situation indicates the Fed may be lowering rates...so B of A is going to make sure they charge the highest possible rates.

Finally, the mailing includes a lengthy change to Billing Rights and makes arbitration mandatory if you have a dispute. So, if you agree to all these new terms you're also giving up your right to sue in court if you have a claim against B of A.

They say you can write to them and reject these new terms. I'm not sure what happens then.

One thing I am sure of is that we can thank our feckless elected representatives in Congress for allowing the financial industry to screw us at will.