NEA/CTA BANK OF AMERICA CREDIT CARD UPDATE 

As a result of the unprecedented challenges facing financial institutions in these difficult economic times, NEA and CTA were recently advised by Bank of America (BAC) of the need to modify certain aspects of the NEA/CTA Credit Card Program to ensure the Program remains stable and competitive.   In response, NEA sought and received assurances from BAC that no changes would be made to a) the practices BAC has historically employed to manage account holders’ credit lines or b) the preferential criteria presently used to review and approve NEA/CTA members’ applications for credit. With these assurances in place, NEA MB and BAC worked collaboratively to create the fairest possible scenario for affected NEA/CTA members.  

I’m sure that you have heard reports of other financial institutions that have already implemented significant changes to their credit card and loan programs in response to the economic downturn. The tempered nature of the changes cited in this bulletin assures that the NEA/CTA Programs remain highly competitive and continue to provide true value to NEA and CTA members and their families. The new APRs and fees also continue to compare favorably with rates and fees on similar products in the marketplace. NEA/CTA Credit Card Program Changes  Approximately one quarter of existing NEA/CTA cardholders will be impacted by rate and fee pricing changes that take effect June 1, 2009. BAC will begin notifying these members of the changes in April 2009 by letter and through statement messages and inserts. Members wishing to opt out of these changes will be instructed to call or write Bank of America.  However, any use of a card after opting out will be considered an acceptance of the new terms and conditions.  If you have any questions regarding the information contained in this bulletin, please feel free to contact Member Benefits at 650-552-5200, or Diane Morte, Member Benefits Consultant, at 650-552-5430.