BofA won’t increase interest rates before the CARD Act comes into effect

 image This week Christopher Dodd, chairman of the Senate Banking Committee, released the letter that stated Bank of America won’t lift rates or make any changes in terms on consumer credit card accounts before the reform legislation comes into effect next year. Dodd urged other companies to follow BofA’s sample and freeze their rates.

"In light of the concerns expressed to us by our customers, Bank of America will not implement any change in terms (risk or economic based) re-pricing of consumer credit card accounts between now and the effective date of the CARD Act," the letter said.

The CARD Act will limit the ability of credit card issuers to raise fees and interest from February 2010, so many companies have been increasing charges and rates in recent months ahead of the new law.

Major credit card issuers to be affected include Citigroup, Bank of America, JPMorgan Chase & Co, American Express Co, Capital One Financial Corp, and Discover Financial Services.


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