Barclay Kicks Off NFL Credit Card Partnership

Written by Joe Taylor
Posted On: September 2, 2010

Barclaycard hopes you become as big a fan of your credit card issuer as you are of your favorite football team. The Wilmington-based subsidiary of British banking giant Barclays just launched a thoroughly American loyalty program in partnership with the NFL. The new NFL Extra Points credit cards bear the colors and logos of each account holder’s favorite NFL team. Barclaycard has teamed up with the league to let fans know about the new cards through stadium promotions, telecast advertising and direct mail to season ticket holders.

Every time you make a purchase, you’ll earn points you can redeem for special team experiences, such as behind the scenes tours, fantasy camp-style events and bonus game-day activities. Every team offers its own spin on the rewards available, and cardholders can also redeem points for licensed merchandise and authentic memorabilia. NFL Extra Points cards even get an instant 20% discount on purchases made at NFLShop.com. The partners have ramped up excitement about the new cards through special giveaways and an immersive online experience on team-branded Websites.

The Barclaycard program replaces the NFL Extra Points program previously offered by Bank of America. Under agreements with individual NFL franchises, B of A can still issue debit cards bearing the logos of football teams. Shortly after the NFL announced its new partnership with Barclaycard, Bank of America gave its customers a few weeks to redeem their accrued rewards points.

Changes to loyalty programs can also confuse credit card customers. After the switch, football fans must sign up for all new accounts with Barclaycard if they want to keep carrying credit cards bearing the logos of their favorite teams. Cardholders of former NFL Extra Points accounts won’t automatically get new cards issued under the Barclays partnership. Instead, most account holders will receive replacement Bank of America credit cards bearing their existing account numbers.

If you’re in that situation, remember to weigh the financial impact of a balance transfer from your old account to a new NFL Extra Points account before making the switch. As with all loyalty credit card programs, make sure you’re going to get plenty of value from exclusive rewards before committing to annual fees or finance charges.

Credit CARD Act Tackles Penalty Interest Rates

Written by carnold
Posted On: August 16, 2010

Missing a monthly credit card payment used to mean saying farewell to low interest rates and special promotions. However, under new Credit CARD Act guidelines that take effect on August 22, banks must look at your overall account history before relegating you to their subprime portfolio. Lawmakers required the Federal Reserve to clarify the rules under which lenders can adjust annual percentage rates after an account has been opened.

Banks Must Warn About Penalty Rates

Late fees of up to $50 didn’t sting as bad as the penalty finance charges many lenders impose after a missed payment. For some cardholders, a single missed deadline meant kissing farewell to low interest rates forever. Some credit card agreements forced higher APRs on late cardholders quickly and retroactively, negating some teaser rates. Therefore, a lost envelope could trigger hundreds of dollars in penalty finance charges.

The new rules force banks to wait at least 45 days before adjusting a credit card’s interest rate, even when the customer acknowledges a late payment. This cooling off period allows lenders and consumers to resolve billing issues that may have caused a missed payment. It also gives consumers a window during which they can transfer balances to a bank’s competitors, avoiding higher interest rates.

Penalty Rates Now Reversible

Under the new regulations, credit card issuers can only impose a punishment APR for a maximum of six months. After that, lenders may use up to 45 additional days to conduct an account review. If you haven’t missed any other minimum payments during the penalty period, the bank will have to come up with a pretty convincing reason to tell the Federal Reserve why it can’t roll your account back to its original interest rate.

Earlier provisions of the Credit CARD Act already streamlined marketing and contract communications from lenders. This wave of new rules gives the Fed the ability to ensure that account updates get received and understood by consumers in a timely fashion. These rules don’t just force credit card companies to be more fair with their penalties, they offer a framework for greater partnership between banks and customers to resolve disputes.