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February 7, 2008
GOOD DAY FOR: Burning plastic, after Bank of America started notifying credit card holders with good credit and no late payments that their interest rates will more than double, to as high as 28 percent, for no apparent reason. “Either Bank of America has more financial troubles than it is willing to admit or it has a level of institutional arrogance that is unacceptable,” said Credit-dot-com CEO Adam Levin. (BusinessWeek.com)
BAD DAY FOR: Owning up, as an increasing number of homeowners, facing rising mortgages, falling house values, and little equity invested, are choosing to walk away from their homes and mortgages. The biggest consequence is a huge hit to their credit score, but even credit score firms say it makes financial sense for some borrowers to default, especially if the alternative is bankruptcy. (CNNMoney.com)
of The Week magazine.