Several weeks ago my colleague Leslie McFadden wrote a story about small-business credit cards not being covered by the CARD Act. Yesterday Bank of America announced that it is going to extend some of the terms of the CARD Act to its small-business credit card holders.
Bank of America spokeswoman Betty Riess told Leslie this morning:
"We know that small businesses have been especially hard hit by the economy, and so we're making these changes to help benefit them. It's also part of an effort to build stronger relationships with our small biz customers."
According to the press release, BofA's 2 million small-business credit card holders will receive the "Clarity Commitment" by mid-April.
Riess explained that in the case of the credit card, Clarity Commitment is "a summary of each customer's rates, fees and general payment information on a single page." Clarity Commitment is also given to their mortgage customers.
Clarity Commitment includes rates, fees and payment information specific to that customer's account, according to Riess.
The changes to existing balances (no rate increases on existing balances) will take effect in May while the other changes (45 days' notice of rate changes on future balances, no over-limit fee, minimum of 25 days between statement date and payment due date) will take effect in July.