U.S. Biggest Bank Vows Unchanged Card Fees Ahead of Law

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Bank of America Corp., the biggest U.S. bank, vowed to keep consumer credit-card fees and interest rates unchanged until federal regulations take effect next year.

The bank offered the pledge in a letter to House Financial Services Committee Chairman Barney Frank, who called a hearing Oct. 8 on legislation that would move up the effective date for the Credit Card Accountability Responsibility and Disclosure Act. Frank, a Massachusetts Democrat, proposed that provisions, including a requirement that lenders apply payments to higher- rate balances first, take effect Dec. 1 rather than in February.

Credit-card lenders including JPMorgan Chase & Co. and Discover Financial Services raised rates and fees after President Barack Obama signed the law on May 22. The rules, which take effect in stages, limit rate increases, bar double- cycle billing and require banks to mail statements three weeks before the due date instead of two.