Printer Friendly

NORWEST ANNOUNCES CREDIT CARD PRICE CUTS

TO BUSINESS EI?TOR:
 NORWEST ANNOUNCES CREDIT CARD PRICE CUTS
 MINNEAPOLIS, May 21 /PRNewswire/ -- Norwest Card Services has announced plans to drop credit card interest rates, beginning June 1, for its cardholders who consistently exhibit the most responsible use of their accounts.
 The automatic price cuts will mean an adjustment on new purchases and cash advances to a low 15.5 percent variable annual percentage rate (APR) for qualified Norwest Classic Visa and MasterCard customers, and to an even lower 13.9 percent variable APR for qualified Visa Gold and Gold MasterCard credit card customers. Norwest's new variable Prime +9 percent rate on Classic cards and Prime +7.4 percent rate on Gold cards, will be determined by the prime rate, and may be adjusted quarterly. For a limited time, qualified customers can also get a low 12 percent APR on all transferred balances and new transactions. In addition, beginning July 1, all Norwest cardholders will begin qualifying for rebates of up to 1 percent on purchases.
 "With our new low rates, balance consolidation incentives and purchase rebates, our card offers more than any other major bank card," said Norwest Card Services President Brian O'Hare.
 "Competitively, this move puts our Prime Performance APR among the lowest of all bank card rates. The rebate makes our offer even more compelling since cardholders can earn the rebate at every location where their Norwest Visa or MasterCard credit card is accepted," O'Hare said.
 Norwest Corporation President and Chief Operating Officer Dick Kovacevich said, "Performance-based pricing is just one more example of Norwest's commitment to meeting 100 percent of our customers' financial needs at very competitive prices."
 Norwest's new two-tiered, performance-based pricing is designed to reward its most deserving customers with lower rates and added features.
 Approximately 70 percent of the 1.4 million Norwest cardholders eligible for the new pricing will qualify initially. They will be notified of their rate reduction over a three-month period. The June notification will be directed to cardholders within the Norwest community banking regions. These cardholders will realize the savings on any purchases or cash advances made since their May statements. The remaining cardholders, also serviced by Norwest, will be notified in July and August.
 To meet the initial qualifying criteria for the lower rate and 12 percent balance transfer, customers: must have had a Norwest credit card for at least one year or be a Norwest Bank customer; must have a consistently well-managed credit card account; cannot have more than two slow payments in the last 12 months and no two-cycle delinquencies in the last 12 months; must have at least $1,000 in purchases on their Norwest card during the past year; cannot currently be delinquent or over limit; and must have their current address and phone number on file with Norwest.
 Customers who do not meet the initial qualification criteria will have the opportunity to obtain the lower rate. However, Norwest will periodically review accounts, at which time these customers may move to the lower rates. These customers still are eligible for purchase rebates regardless of the review period or qualification status.
 To move to qualified status, a cardholder must make at least the minimum payments for 12 months, must not have exceeded the credit limit within the last 12 months, must make at least $1,000 in purchases on their Norwest card over a 12-month period; and must have provided a current address and telephone number. Reviews will occur in January and July.
 Within Norwest's two-tiered performance-based pricing is an innovative feature which allows a cardholder to be "slow" in his or her payment without being in default of the cardholder agreement. Norwest will charge a higher APR during the time period that a customer pays "slow."
 However, a customer who pays "slow" two or fewer times per year can still qualify for the Prime Performance rate if the account meets the other qualifying conditions.
 O'Hare says this approach, at present, contrasts with nearly all other credit cards, where a payment made after the due date automatically puts a customer in default of the contractual agreement. Default can result in declined authorization, late fees and even commencement of collection activities. "We believe that a cardholder who occasionally lapses into a slow payment can still be a very good customer, so we decided to tie the customer's cost to our risk, rather than turning an act of forgetfulness into an event of default," he said.
 Norwest also plans to continue its 25-day interest-free grace period if the balance is paid in full each month. Annual membership fees on Classic Visa and MasterCard cards will increase from $18 to $20 and will remain at $40 for Gold cards.
 Norwest Card Services, based in Des Moines, Iowa, serves more than two
million Visa and MasterCard credit card customers. It also provides credit card transaction processing to more than 40,000 merchants, and supports approximately one million automatic teller machines (ATM) and debit cardholders and a substantial ATM network. Norwest Card Services is part of Norwest Corporation (NYSE: NOB), a $41.2 billion company providing banking, insurance, investments and other financial services through 1,688 offices in 49 states and internationally.
 -0- 5/21/92
 /CONTACT: Patrice Vick of Norwest Corporation, 612-667-0148/
 (NOB) CO: Norwest card Services; Norwest Corporation ST: Minnesota IN: FIN SU: PDT


KH -- MN004 -- 2895 05/21/92 13:33 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 21, 1992
Words:896
Previous Article:SERVICE MERCHANDISE ANNOUNCES THE EXTENSION OF SENIOR CREDIT FACILITIES
Next Article:MINVEN ANNOUNCES APPOINTMENT OF NEW OPERATIONS HEAD AND SETTLEMENT OF VARIOUS LITIGATION ITEMS
Topics:


Related Articles
NORWEST TO MAKE MAJOR CREDIT CARD ANNOUNCEMENT
NORWEST CUTS CREDIT CARD INTEREST RATES FOR THE SECOND TIME IN FIVE WEEKS
NORWEST CUTS CREDIT CARD INTEREST RATES FOR THE SECOND TIME IN FIVE WEEKS
NORWEST OFFERS SPECIAL LOW INTEREST RATES FOR NEW CREDIT CARD CUSTOMERS
NORWEST CREDIT CARD CUSTOMERS HIT BY CALIFORNIA EARTHQUAKE CAN RECEIVE SPECIAL ASSISTANCE TO MEET IMMEDIATE NEEDS
NORWEST FINANCIAL SENIOR NOTES RATED BY DUFF & PHELPS
NORWEST AND UNIVERSITY OF NORTHERN COLORADO INTRODUCE NEW UNC CARD WITH INSTANT ACCESS ACCOUNT
DUFF & PHELPS: NORWEST FINANCIAL, INC. $150 MILLION SENIOR NOTES RATED 'AA'
NEW PRODUCT REWARDS NORWEST CREDIT CARD CUSTOMERS
Norwest Card Services to Move Credit Card Portfolio and 40 Jobs From Iowa to Nevada

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters