Released: April 07, 2007

Ex-MBNA cardholders face new minimum fee

Source: Bruce Mohl, Boston Globe (Free Registration)

Bank of America Corp. is imposing a monthly minimum finance charge of $1.50 on former MBNA credit card customers who carry balances unless they opt out in writing by May 1.

Diane Wagner, a Bank of America spokeswoman, said customers the bank acquired when it bought MBNA Corp. in 2005 are being brought into conformance with the existing Bank of America fee structure. In letters to customers, Bank of America said it was adding a minimum finance charge “due to a change in our business practices.”

Wagner said the minimum charge would only be assessed if the customer has a finance charge of less than $1.50, which is roughly the interest on a $100 balance at an 18 percent interest rate. Someone with a balance yielding a 30-cent finance charge would pay $1.20 more, bringing the total to the $1.50 minimum.

Customers who pay their entire balance would not be assessed the fee.

“It’s pretty much industry practice to have a minimum finance charge,” Wagner said.

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