Recent Federal Legislation targeting “unfair and deceptive” lending practices by credit card issuers – was signed into law as the Credit CARD Act of 2009.
While many of these changes are not scheduled to go into effect for several months, at Amegy Bank we’ve always believed in treating our customers fairly and we welcome this kind of legislation.
Here’s a quick look at how the proposed changes will impact cardholders in general and how we’ve approached these issues over the years.
The new Credit CARD Act of 2009 versus Amegy Bank’s practices
A Side-by-Side Look
Cardholders’ Bill of Rights
Amegy Bank’s Practices
Cardholders shall no longer have to endure universal default (when issuers increase interest rates for customers who miss a payment on another account).
Amegy Bank has never practiced “Universal Default”. In fact, we don’t even have Default or Penalty Rate Pricing.
Cardholders shall have ample time to pay bills; statements must be mailed 21 calendar days before due date.
Amegy Bank consumer cardholders have a full 25 day grace period to pay their balance before interest is charged on new purchases*, and statements are mailed at least 21 days before the due date.
Cardholders shall receive proper notification of interest rate increases with a 15 day notice.
Changes to our rates and fees are usually sent to customers with at least 45 days notice.
Cardholders shall receive fair allocation of payments to different balance rates.
Unlike most card issuers, Amegy Bank applies payments to the higher interest rate balances first. We apply payments in the following order: finance charges and fees, balance transfers, cash advances and then new purchases.
Cardholders shall have the right to set limits on their own credit.
Cardholders can request a fixed limit so that any transaction that would take their balance over their limit will be declined.
Cardholders shall no longer be subjected to double-cycle billing, a practice that hurts cardholders who pay off balances in full in one statement but not the next.
Amegy Bank has never practiced double-cycle billing.
Cardholders shall have payments credited properly on due dates if made before 5 p.m.
Amegy Bank credits payments if made to their account on their due dates by 5 p.m.
* Business Cards have a 20 day interest free grace period.
