Lightspeed Research PowerPoint Template

Appendix: Competitive Summary -- Payment TermsNew Entries this MonthRecent or Imminent ChangesChanges within Past YearAmericanExpressBank ofAmericaCapital One Chase Citi Discover HSBC US Bank Wells FargoMinimumPaymentFor TrueEarningsCostco card:Removed 1/24 th ofover-limit amountfrom minimumpayment charge, ifnew balanceexceeds credit limit.(Effective May 2009)Bank of AmericaCard changed to:Sum of 1% ofnew balance +new financecharges + anynew late fee.Minimum of $15.(Effective Jan2010)No recent changecollectedChase cardchanged to thegreater of:1. $102. 2% of the newbalance OR3. Sum of 1% ofnew balance,billed interest andany late fees.(Effective Feb2010)Sears cardchanged to:Sum of (amtexceeding creditline + amt pastdue) + greater of(new balance if10OR 1% of newbalance + financecharges + late feeOR 1.5% of acctbalance)(Effective Sep2009)Changed to sumof:1. The greater of$40 OR 2% + newbalance (plus $40if new balanceincludes a BTbalance) OR(current financecharges + latefees + $20)2. Any amountpast due.(Effective Dec2009)HSBC UnionPlus card offersSkip PaymentOptions toqualifiedmembers.(Effective Aug2009)No changecollectedHome Projects Visachanged to:If new balance < $25,minimum pay = newbalance. Otherwiseany amounts past dueplus the greater of1. $25 OR2. 3.5% of the highestnew balance OR3. Sum of interestcharges plus feesassessed plus 1% ofhighest new balance(Effective Feb 2010)FinanceChargesFor multipleproducts: Minimumfinance charge of$0.50 removed.(Effective Jan 2010)Upromise card:Minimum of$1.00.(Effective Mar2009)No changecollectedMultiple cardsminimum financecharge changedto $1.00.**(Effective Jan2010)Shell cardminimum financecharge changedto $2.00(Effective Jan2010)Charges will beimposed fromtransaction dateand no longer thepost date - unlesstransaction wasposted after closeof billing cycle.(Effective May2009)HSBC Platinumcard: Minimumof $1.00(Effective May2009)No changecollectedNo recent changecollectedGracePeriodNo change collectedMultiple products:At least 25 daysfrom statementclosing date.(Effective Feb2010)No changecollectedMultipleproducts: Atleast 21 days.**(Effective Feb2010)At least 20 daysfor the Searscard.(Effective Sep2009)Grace periodremains as 25days, but paymentdue date will bechanged.(Effective May2009)Best BuyRewards card:23 days.(Effective Jul2009)No changecollectedNo recent changecollectedPaymentAllocationFor multipleproducts: Paymentsup to the minimumdue will be applied tolower interest ratebalances first, andpayments above theminimum due will beapplied first to higherinterest ratebalances and then tolower interest ratebalances.(Effective Feb 2010)Multiple products:Payments inexcess of the totalminimum paymentdue will be appliedto balances withhigher APRsbefore balanceswith lower APRs.(Effective Feb2010)We applyminimumpayment tolower APRbalances beforehigher ones, andany portion ofpayment inexcess of theminimumpayment tohigher APRbalances beforelower ones.(Effective Feb2010)Multipleproducts:Payments abovethe minimumpayment due willbe applied firstto higher interestrate balancesand then tolower interestrate balances.**(Effective Feb2010)Sears Card: “Youauthorize us toapply paymentsthat are mostfavorable orconvenient to us.This may includeapplyingpayments andcredits to low APRbalances first”.(Effective Sep2009)Payments inexcess ofminimum paymentdue will be appliedto higher APRsfirst.(Effective Feb2010)Any amountpaid in excessof the monthlyminimumpayment will beallocated first tobalances withthe highestinterest rate.(Effective date:TBA)Amountgreaterthan theminimumpay will beapplied tothe highestto lowerAPRbalances.(EffectiveFeb 2010)Wells Fargo Card:Any amount paid inexcess of themonthly minimumpayment will beapplied first tobalances with thehigher APRs beforebalances with lowerAPRs.(Effective Feb 2010)** Any changes to the WaMu card are now included under the Chase column.Source: Lightspeed Research Terms Tracking Study, February 2010Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved. 43