California attorney Ben Pavone refuses to pay his credit card debt until Bank of America lowers his interest rate. Pavone has also threatened to sue Bank of America if they try and ruin his credit because of his non-payment.
Pavone asked BOA for an increased credit limit a few months ago, when he needed the extra cash. BOA replied by lowering his credit limit.
Pavone replied by telling BOA he considered the lowered limit an anticipatory breach, and stated:
I have no doubt that you will mark my credit in light of this default, but if you do, I will sue you. I am eager to argue to a court that your interest rates are unfair within the meaning of various state and federal statutes, and anxious to point out that you ‘had’ to cut my credit limit from $32,000 down to $30,000 at the same time you were borrowing billions from the federal government and paid your executive bonuses in full.
Pavone has a point. Whether it justifies he refusal to pay is unknown, but it is certainly an interesting approach.
Ben Pavone, California Lawyer, Refuses To Pay Bank Of America Credit Card, Threatens To Sue | The Huffington Post
(photo: yksin)
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{ 2 comments… read them below or add one }
I’m interested in hearing the outcome of this case. I’m not sure where his claim that BofA had to increase his credit emanates from, and there is nothing in the HuffPo article as to why his interest rate increased. Maybe he can shame them into lowering his interest rate, but I’m not sure he has legal grounds for a usury claim. By the looks of his website, the guy doesn’t shy away from publicity.
While he may not have solid ground for refusing repayment of outstanding debt, he does make a good point: The TARP bailout funds were suppose to enable banks to continue to make loans. If those same banks then refuse to honor existing credit lines–thereby reducing available credit–then what was the point of TARP? Further, why do CC customers have to cover to RE losses?