Bank Of America Finally Offers Understandable Terms And Conditions

Following several years of offering obscure and cryptic credit card terms and conditions, banks and financial institutions may finally be of the mind to make things clearer and more understandable for credit card holders. Bank of America is doing a complete turn around and has launched a program that offers credit card holders easily understandably credit card terms and conditions.

Bank of America calls it its Credit Card Clarity Commitment program. The program aims to provide every Bank of America credit card holder a single page summary of all terms in their account written in plain, easy to understand language. This latest term clarification program of Bank of America is an extension of their clarity initiative which was launched earlier this year and was aimed at its mortgage business.

Clarification of credit card terms is a major issue addressed in the upcoming Credit CARD Act which will finally go live on February 2010 and this move may be a bid for compliance for that particular ruling in the Act. It is also indicative of the changes banks are making to get on the good side of consumers who are frustrated with recent bank behavior and who are looking for more transparency from their lenders especially now, in the aftermath of the lending crisis caused by subprime lending.

Bank of America global card services president, Ric Struthers said, “We know that now, more than ever, people want clear, straightforward information from their bank”. He also added that, “Our goal is to communicate clearly and make it as simple and easy to understand as possible so that they can use credit wisely. Our business is linked to our customers’ success, and we will do everything we can to ensure they have the information they need in simple, clear, and straightforward terms”.

With this new program, every Bank of America credit card holder will get a Credit Card Clarity Commitment which will include information regarding rates for purchases, cash advances and balance transfers. They would also get information on how to pay so that the account is in good standing. The bank also says that a summary of the fees a credit card holder sees from their account will also be included.

Bank of America president of consumer, small business banking and card services, Brian Moynihan said, “Bank of America is investing more in our customers and our future. We are delivering simplicity and choice across our products and services that will help our customers better manage their finances. In the end, when our customers succeed, we will succeed”.