In marked contrast to its major
rivals, Bank of America (BofA), the country’s biggest card issuer
after JPMorgan Chase, has announced it is putting a moratorium on
credit card interest rate rises in the period up to the full
provisions of the Credit Card Accountability Responsibility and
Disclosure Act (CARD Act) taking effect in February 2010.
The legislation, which is coming into force in
stages, bars double-cycle billing, limits rate increases and
requires banks to mail statements three weeks before the due date,
instead of two.
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“Every other credit card company should follow
suit,’’ said Christopher Dodd, chairman of the Senate Banking
Committee.
Within three days of BofA’s announcement,
Wells Fargo announced plans to raise interest rates for the
majority of its credit card customers by 3 percent from 30
November, one day before House Financial Services Committee
chairman Barney Frank wants curbs on rates and fees to become
effective.
Rival issuers Discover and Chase announced
rate rises shortly after the terms of the CARD Act were disclosed
in May.
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