Small Business Finance News
American Express Applies Provisions Of The CARD Act For Its Small Business Cards
Written by Jenna Weiner
American Express has chosen to apply some parts of the CARD Act to its small business cards.
Hoping to provide some good news for entrepreneurs, American Express is voluntarily applying some aspects of last year's CARD Act to its small business cards.
According to BusinessWeek, there has been confusion among some small business owners about "over limit" penalties - which Congress eliminated for consumer credit cards - because they still apply to business cards.
In an email to the magazine, AmEx spokeswoman Rosa Alfonso explained that the company only imposes the fees when a business account is over its credit line at the end of a billing period. She explained that customers can avoid the over limit fees by paying the balance down below the limit before the cycle ends.
"In addition, American Express offers an alert system to help customers stay within their credit limit," Alfonso wrote. "Cardmembers can sign up for alerts via text message or emails which help them manage their balance."
Under the self-imposed rules of the CARD Act, American Express business customers have 45 days to opt out of across-the-board rate increases or other changes to entire card portfolios. Among other changes, late payment warnings have also been added, and billing statements have been clarified.
The Credit Card Accountability, Responsibility, and Disclosure Act of 2009 was signed on May 22, 2009 and went into effect on February 22. The White House called the legislation "a turning point for American consumers."
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