Financial Regulatory Forum

Bank of America pledges halt on card rate hikes

By Reuters Staff
October 6, 2009

U.S. Senator Christopher Dodd (D-CT) (File Photo) WASHINGTON, Oct 6 (Reuters) – Bank of America said it will not change the terms on consumer credit card accounts ahead of reform legislation slated to go into effect early next year, according to a letter released by a lawmaker on Tuesday.

Christopher Dodd, chairman of the Senate Banking Committee, released the letter, dated Oct. 5, and called on other companies to follow Bank of America’s lead.

“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.

(Reporting by Karey Wutkowski; Editing by Gary Hill)

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