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Implementation of Credit Card Legislation• February 22 marked the long-anticipated deadline for compliance with severalremaining key provisions of the 2009 CARD Act.― Phase 1 – Implemented on August 20, 2009:• Cardholders must be provided 45-days notice of significant changes in terms• Minimum of 21 days between statement delivery and payment due date― Phase 2 – Implemented on February 22, 2010:• Issuers are to disclose the period of time and total interest that will be paid if a consumerrepays a card balance by making only the minimum monthly payment• Limits on the re-pricing of existing balances, except in the case of a payment more than60-days past the due date or promo rate expiration• Penalty rates to be re-examined six months after they are applied• Payments in excess of the minimum must be applied to highest interest rate balances first,except for deferred interest balances• Prohibits issuers from setting early morning deadlines for credit card payments; paymentsreceived on weekends or holidays will not be penalized and credit the next business day• Over-limit fees cannot be charged unless cardholder has agreed to allow the issuer tocomplete over-limit transactions• Limits APR, fee or finance charge increases within the first year of account opening• Universal default and two-cycle billing will no longer be permissible• Promotional rates must last for at least 6 monthsCopyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.16
Recent Highlights• In the weeks leading up to February‟s deadline for compliance with the CARD Act, severalissuers mailed new notifications or, in some cases, fully-updated Terms and Conditionsdocumentation to cardholders.• Issuers also started to roll out the required new statement format (examples to follow).• Issuers continue to take varying approaches with regard to grace periods, new card offers,card fees, APRs, overlimit opt-in, and more.• Even communication strategies differ from one issuer to the next.― Some issuers, such as Capital One and Chase, note that the changes are due to newlaws and regulations impacting the industry.― Others, such as Wells Fargo and US Bank, state that they are making changes tohelp them manage their accounts.For Example: “[We are making] beneficial changes that should help youbetter manage your money, and depending on how you use your account,may have a positive financial impact on your account.”Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved. 17
Page 1: Credit Card Issuers' Responses toU.
Page 4: Credit CARD Act - Consumer Protecti
Page 7 and 8: Credit CARD Act - Consumer Protecti
Page 9 and 10: Credit CARD Act - Consumer Protecti
Page 11 and 12: Credit CARD Act - Enhanced Consumer
Page 13 and 14: Credit CARD Act - Protection of You
Page 15: About the Credit Card Terms Trackin
Page 19 and 20: Cardholders Receiving Changes in Te
Page 23 and 24: Comparison of Balance Transfer (and
Page 25 and 26: Specific Examples: Bank of America
Page 27 and 28: Specific Examples: Chase Changes in
Page 29 and 30: Specific Examples: Citi Special Off
Page 31 and 32: Specific Examples: New Easy-to-Unde
Page 33 and 34: New Card and Existing Account Offer
Page 35 and 36: Pricing / Duration Competitive Summ
Page 37 and 38: Promotional Rate Examples (Continue
Page 39 and 40: Debit Card OverdraftsCredit cards a
Page 41 and 42: Appendix Slides: Competitive Summar
Page 43 and 44: Appendix: Competitive Summary -- Pa
Page 45 and 46: Appendix: Competitive Summary -- Tr

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