Bank of America (NYSE: BAC) will be sending over 40 million credit card customers a one page letter explaning the interest rates and fees that they are being charged starting today.
Although the Credit Card ACT provisions that are coming into effect in February do not mandate the move, Bank of America’s letter of explanation is an attempt to meet the new law’s aim at making credit card policies easier to understand.
The letter is being sent to more than 40 million consumer credit card holders. A sample letter that was provided details the interest ratse that consumers will be charged on purchases, balance transfers and cash advances. The letter also spells out annual fees, transaction fees and late payment fees. The letter also says that interest rates can change if payments are made late.
Like most of its competitors, Bank of Ameriac has raised credit card interest rates and cut credit limits, as well as taking other actions before the Credit Card ACT restricts its ability to do so. Some provisions of the Credit CARD Act have gone into effect and the reminaing reforms will phase in throughout 2010.
