Bank of America Corp. is giving cardholders more details about interest rates and fees, in advance of tighter regulations set to take effect next year.
B of A is sending 40 million customers a one-page summary this week on balance transfers, cash advances and fees on transactions and late payments, the Charlotte lender said Monday.
The Senate may consider a measure, already approved by the House, that would move up the start date of a law that limits rate increases on existing credit card balances. The vote followed complaints that banks were increasing finance charges as a response to the Credit Card Accountability Responsibility and Disclosure Act, which President Obama signed in May.
The law, which takes effect in stages, will require banks to apply payments to higher-rate balances first, limit rate increases and ban universal default, or raising rates based on a missed payment with another lender.
Bank of America has not raised interest rates on existing customers since the law was passed and does not plan any changes until it takes effect next year, spokesman Tony Allen said.
The issuer has reported $4.7 billion in credit card losses over the past five quarters, including a third-quarter loss of $1.04 billion after it deemed more than $2.1 billion of loans as uncollectible.
B of A said last month that credit card write offs fell in October to 13.22% from 14.25% in September, still the highest rate among the nation's six biggest issuers. B of A is the second-largest U.S. card issuer.
