To provide customers with clear and concise information, Bank of America has expanded its industry-leading Clarity Commitment® to its two million small business credit card customers. The Clarity Commitment – a one-page summary of each customer's rates, fees and payment information – was mailed to customers along with information about improvements to account terms.
"We are committed to supporting the needs of our small business customers," said Bank of America Deposit and Card Products Executive Susan Faulkner. "We understand that small businesses have been hit especially hard in this economic environment, and our goal is to make it as simple and easy as possible for them to understand their lending products so that they can use credit wisely and grow their businesses."
Each cardholder's one-page Clarity Commitment includes:
- Rates for purchases, balance transfers and cash advances
- Payment information to keep the account in good standing
- A summary of fees
Bank of America first introduced the Clarity Commitment to its mortgage customers last year and has since expanded it to other credit products, including home equity loans and consumer credit cards.
The bank is also making a number of improvements to small business card accounts, including:
- No rate increases on existing balances
- At least forty-five days advance notice on any rate changes on future balances
- No fee for going over the credit limit
- A minimum of 25 days from statement closing date to payment due date
"Our objective is to provide solutions that help our customers better manage their daily finances and provide them with the control, choice and clarity they have asked for," said Faulkner. "Our Clarity Commitment and these additional changes to our small business credit card accounts are all part of a broader commitment to building stronger relationships with small businesses and serve their credit, deposit and payment needs."
Bank of America Commercial Product Delivery Executive Laura Whitley added, "We serve more small businesses than any other bank in the country and lent more than $16.5 billion to them last year. But we see our responsibility as more than lending. Our goal is to support their growth through education and support, advocating on their behalf and helping where we can. The first step is making sure we are clear and transparent from the very beginning of our relationship."
In 2009, Bank of America modified payment structures to improve monthly cash flows for more than 60,000 small business card customers – a 50 percent increase over 2008. The bank also pledged to increase lending to small- and medium-sized businesses in 2010 by at least $5 billion.