How the Program Works

• Consumers were charged a 3% fee for advances, which made mutliple advances costly.money image by D"D?D?'?'€D?D1 D--''Do from Fotolia.com
  
  Bank of America's Clean Sweep Debt Consolidation program offered consumers loans of between $500 and $50,000, at a variable annual percentage rate (APR). Consumers were charged a 3% fee for advances from the loan. No collateral was required, and consumers could get approval over the phone. The program was targeted at consumers with high-interest debt.
  
  

Benefits of the Clean Sweep Program

• Interest rates on some Clean Sweep loans were as high as 21%.money image by Bradlee Mauer from Fotolia.com
  
  The Clean Sweep program allowed some consumers to take out large loans for interest rates as low as 8%, which in turn allowed them to pay off high-interest debt. The ability to qualify for a large, low-interest loan with no collateral was an asset to those consumers who did not own their home or have other assets to use as collateral.
  
  

Drawbacks of the Clean Sweep Program

• Consumers who owed money to FIA Card Services were not allowed to pay those debts with Clean Sweep fundsDebt concept - cutting a credit card image by Sophia Winters from Fotolia.com
  
  While some consumers qualified for the full $50,000 at 8% interest, many more did not. Interest rates on some loans were as high as 21%. Bank of America also did not allow Clean Sweep participants to use the funds to pay off consumer debt owed to FIA Card Services, which is owned by Bank of America. The variable interest rate policy also meant that a consumer's APR could vary widely, making paying off the loan difficult.