Bank of America Clean Sweep Program

April 10, 2011

During the past several years, the market scenario has completely changed. In order to retain the old consumers and attract new ones, financial companies are coming up with new packages and offers. Their sole objective is to help consumers and attain maximum cash in return.

The Latest Package of Bank of America

Bank of America is one of the well-known and reliable banks in the US financial market. Like other banks, Bank of America also introduces new packages for their consumers. The newest package of Bank of America is known as “clean sweep” line of credit. This package is aimed to those consumers who are in need of debt consolidation.

It is obvious that the banks and other marketing promotions are not always genuine; they possess some tricky games, too. The contracts company deal in may have some hidden clauses. They may not be visible in the time you sign the contract, but you will realize when you are made to pay the fees and interests of the service. So, you need to be very careful before getting into a deal. Actually the contracts of such organizations include some technical terms that might not be understood fully at that time could put you in a fix.

Moreover, there are some words in small size written at the bottom of the page. Consumers often do not read them and skip for grated, but these are things organizations catch people.

Similarly, “clean sweep” package also contains some hidden clauses. If you read the contents of the plan, you will see that it puts you into such a wild circle of debts. Even you will hardly be able to return the debt in full.

History of the Scheme

In reality, the scheme was introduced after the merger of Bank of America and MBNA. They advertised the package in debt consolidation loans and fixed the limit of borrowing to $25000. They also mentioned that the interest rate will not be more than 9.49%. However, this is the minimum rate, not maximum. The contract also states that these costs may vary as per the rates of interest published in the Wall Street Journal.

Following are some tips that could help you understand these tricky clauses of debt consolidation plan.

What Really The Plan Is?

Basically, the bank gives you a debt on variable rate of interest based on your debt. More seriously, they want to get done a mortgage deal. That is, the interest rates will go up increasingly. In practical, the interest rate may increase up to 26 %.

Transaction Fees

Whenever you go to the bank for an advance, they will charge transaction fees at the rate of 3% from you.

Restart of Payment Terms

The bank restarts your payment terms on every advance you take. The terms may go as long as six years. Also, the bank will adjust the fees in accordance with terms.

Advantages of the Plan

The advantages of the plan are:

There are no annual fees for this package.
There is no need of any collateral security for the approval of the plan.
You will not be punished for the prepayment.
It serves you like a re-accessible reserve.

When you contact the bank about the plan, you can take a decision within a few minutes.

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