Creditnet News Story

BoA offers clarity statement for credit cards

Monday, November 30, 2009

By Danielle Robson

Interest rates, fees to be included in mailings.

Bank of America recently announced that it will provide a mailing to its customers that will provide clearer information regarding credit card accounts.

The mailings are expected to go to about 40 million of its customers starting on December 1 of this year. Consumers who have recently accepted credit card offers from the company can expect the mailings to come next year.

The mailings are part of the bank's Credit Card Clarity Commitment, which aims at making account information more accessible to cardholders.

"Our goal is to communicate clearly and make it as simple and easy to understand as possible so that they can use credit wisely," Ric Struthers, president of the bank's Global Card Services division, said.

Included in the one-page mailing will be a summary of different rates for accounts, including those associated with purchases. It will also include a summary of the fees associated with a card and information on how to keep an account in good standing.

The effort from the bank mirrors new guidelines put forward by the Credit Card Accountability, Responsibility and Disclosure Act. The act requires that statements include how long it would take an account holder to pay off their card if they only made the minimum payment.