Consumer complaint received 2018-12-29
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: FL
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Advertising and marketing, including promotional offers
Sub-issue: Didn't receive advertised or promotional terms

Complaint:
Recently, at a physical branch, speaking with a customer service representative via phone, writing a letter to Bank of America CEO XXXX XXXX, and receiving a response from their Executive Resolutions office, I tried resolving an issue with a recent change Bank of America is implementing to its Cash Rewards cards ; thus far, the issue has not been resolved. Not only does it affect me, but also a great number of Bank of America Cash Rewards cardholders. Therefore, I am submitting this complaint in the hope that the CFPB can provide some assistance in resolving this issue for Bank of America customers.

Currently, Bank of America Cash Rewards cards receive different levels of cash back for different categories. In addition, if a client is a Bank of America checking or savings account holder he or she receives an additional 10 % on the cash back. If the client is a part Preferred Rewards due to higher balances in said accounts, he or she receives 25 %, 50 %, or 75 % in additional cash back. In either case, customer bonus [ is received ] at the time of redemption. 

On Thursday, XX/XX/XXXX, I received an email stating changes to my Bank of America Cash Rewards card which would be getting more rewarding. After highlighting the ability to change the 3 % cash back category, there was mention of a change in redemption of the cash back. 

It states, Your customer bonus will now be awarded when you make your purchase, and doesn't depend on how or when you redeem your cash back rewards. Any cash rewards that you haven't redeemed at the time of this change will be automatically increased by 10 % as a one-time adjustment in XXXX. 

This effectively means if a valued Bank of America customer was not a part of the Preferred Rewards member before this change in XXXX, it would be impossible to receive more than a 10 % on accrued cash back. This is terrible news for thousands of Bank of America cardholders who, like me, have been saving, investing, or accruing money to eventually deposit into their Bank of America account in order to reach one of these Preferred Rewards tiers.

Now they are unable to reach any one of these tiers because the balance must be maintained for at least three months, but Bank of America decided to inform their valued customers with less than a months notice.

This is not fair. Imagine a Bank of America customer who deposited money to reach one of the tiers ( minimum is {$20000.00} ) a week or a month before receiving this notification. They would not be able to take advantage of the cash rewards boost because the three months would not transpire before the change in XXXX. It is like a store which decided to change its refund or exchange policy. Imagine if you  bought a sweater at a store but then realized the size was incorrect or you decided you just did not like it that much. You follow the store policy for returns that was in effect when you purchased the item but when you go to return it, the store associate tells you they changed the time frame for returns and they will not accept your return. In the same way, Bank of America has altered previously promised terms and conditions and did not make their customers aware of the change if they wanted to take action in advance. 

After carefully reading through the fine print and researching about the modifications online, I went to my local Bank of America branch on  Saturday, XX/XX/XXXX to inquire about this situation. I was prepared to open a Savings account in order to reach one of Preferred Rewards tiers, money that I had put to work and would not have reached such sums if I had simply left it to accrue ( minimal ) interest in Bank of America. At first, not even the relationship managers seemed to know much details of the change ; if anything, I clearly knew more how this would negatively impact, again, not just me but thousands if not millions of Bank of America clients. They realized I was correct, that depositing money to reach the tiers would be ineffective as the three month time limit would obviously not transpire before the changes in XXXX, and suggested I called the customer service division of Bank of America credit cards.

Shortly thereafter that same Saturday, I did call and was able to speak with a manager ( XXXX XXXX ). After nearly an hour of explanation ( I am sure the phone conversations are recorded ), I finally had her realize the issue with this change. I made the point that even if I had deposited money with Bank of America one month ago, unaware of these changes, and in the hopes of reaching a tier after maintaining the balance for three months, I would still have only received a one-time adjustment. She believed that perhaps in the future if a tier was reached, then I would be able to get the remaining percentage after the one-time adjustment ; for example if in the Gold tier, I would eventually be able to redeem the cash back for a 15 % after the one-time adjustment of 10 %. I told her this was a far-off idea ( especially since none of this information appeared in the fine print ) but she said she would check and get back to me on Monday, XX/XX/XXXX. 

True to her word, XXXX did call me on Monday, but she was unable to receive a definite answer. She escalated the question and promised to call me the next day. On Tuesday, I did receive her call and she informed me the one-time adjustment policy stood, and that if I reached one of the tiers after the XXXX change, I could make an appeal an appeal which offered no guarantee and would essentially leave me in the same spot as if I had not deposited money in Bank of America, with the only difference of course being a significantly smaller return on my money had I invested it elsewhere than a minimal interest savings account. 

I did not deposit further money into my Bank of America account nor opened a savings account as was my intent as there are no guarantees on what may occur. To receive more information, I wrote a letter to Bank of America CEO, XXXX XXXX, and sent it on XX/XX/XXXX explaining the situation and requesting a response. To resolve the problem, the fair alternative for Bank of America clients would be to allow Bank of America clients, such as myself, the ability to reach the Preferred Rewards tier before making this one-time adjustment. Changing redemption methods without giving customers an opportunity to take action on such changes is at best disappointing, and at worst rather underhand. 

Yesterday afternoon ( XX/XX/XXXX ), I received a call from XXXX XXXX of the Executive Resolutions office of Bank of America, stating my letter had been received but my request had been denied. He understood my arguments and viewpoints but the change of terms Bank of America placed would remain in effect. Their only argument ( which they claim is fair ) is Bank of America is maintaining the tiers in which customers currently find themselves.

To summarize, changing terms is misleading to clients. A promise made at the opening of a credit card was not kept. A newly implemented change does not allow existing customers to take action.

What is fair, is not to make a one time adjustment until customers have an opportunity reach one of the tiers. It is a fair and reasonable request and I hope Bank of America can listen to the CFPB. 

Thank you for your time and attention to this matter.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with non-monetary relief