BofA adds new card protection

NEW YORK (AP) - Small businesses are starting to receive some of the protections given to consumers when strict credit card regulations kicked in. But in a twist, they're being offered voluntarily by banks. Bank of America Corp. on Thursday became the latest card issuer to say it will apply some elements of the law that took effect on Feb. 22 to its small business cards. The law itself applies only to consumer cards, despite appeals from some groups for it to cover small businesses cards.

NEW YORK (AP) - Small businesses are starting to receive some of the protections given to consumers when strict credit card regulations kicked in. But in a twist, they're being offered voluntarily by banks.

Bank of America Corp. on Thursday became the latest card issuer to say it will apply some elements of the law that took effect on Feb. 22 to its small business cards. The law itself applies only to consumer cards, despite appeals from some groups for it to cover small businesses cards.

Charlotte, N.C.-based Bank of America said it will no longer charge fees for going over the credit limit or hike rates on existing balances for its 2 million small business cardholders.

The bank also said it will give at least 45 days notice on any rate changes on future balances, and provide a minimum of 25 days between a statement closing date and the payment due date.

The existing balance provision will start in May, and the other changes will begin in July. Small business cardholders will receive letters explaining the changes starting April 12.

The bank wouldn't say how much the new policies will cost. By comparison, Wall Street analysts estimate the bank will lose about $500 million revenue per year to comply with the rules on the consumer side, where it has about 80 million cards.

Other banks have also put in place provisions for small business cards that reflect the new card law.