AT&T UNIVERSAL CARD ANNOUNCES INTEREST RATE DECREASE
AT&T UNIVERSAL CARD ANNOUNCES INTEREST RATE DECREASE WASHINGTON, Nov. 13 /PRNewswire/ -- The AT&T Universal Card
program today announced it would accelerate its scheduled third interest-rate reduction of the year, and drop its variable annual percentage rate -- effective Monday, Nov. 18, 1991 -- from 17.4 percent to 16.4 percent for its more than 8.5 million charter members.
The company, in responding to an attempt to stimulate consumers and get consumer confidence going again, said nearly three million additional non-charter members also would benefit by seeing a reduction from 18.4 percent to 17.4 percent. The AT&T Universal Card, now the third most popular consumer bank credit card in the United States following its March 26, 1990 launch, is the only credit card among the top four that offers all of its customers the benefit of a variable interest rate. Kahn said that should the prime rate continue to fall -- it's currently at 7.5 percent -- AT&T Universal Card customers will continue to see the benefits. "There's no floor limit to how low the AT&T Universal Card's interest rate can drop," said Paul Kahn, president, AT&T Universal Card Services. "I'm convinced we did the right thing for consumers. "I'm also convinced that this move will help stimulate the consumer and get consumer confidence moving again." The current variable APR paid by AT&T Universal Card's cardmembers is lower than the rate paid by approximately 80 million consumers carrying one of the remaining top 10 bank credit cards in the United States. Since March 1991, the APR on the AT&T Universal Card has been reduced twice. In March, the rate was lowered for charter members (there were only charter members at this time) from 18.9 percent to 17.9 percent. In June, AT&T Universal Card again dropped its rates to 17.4 percent for charter members and 18.4 percent for its non-charter members. Today's announcement accelerates by a month and a half the company's third rate drop this year. It also comes at the time of an appeal by President Bush to American banks to lower interest rates on credit cards for a necessary boost to consumer confidence. "Clearly, the success of our program is a result of our sensitivity to our customers' needs," said Kahn. "Now, in addition, we're answering President Bush's call to do even more for the American public." The AT&T Universal Card program has opened more than 7.2 million accounts in less than two years and through Universal Bank of Columbus, Ga. has issued approximately 11 million cards. The AT&T Universal Card's APR is based on prime plus 8.9 percent for its charter members. Non-charter members, those customers who signed up for the card after March 26, 1991, pay one percent higher. -0- 11/13/91 /CONTACT: Bruce Reid of AT&T Universal Card Services Corp., 904-443-8894 (office) or 904-285-7686 (home); or Jim McGann, 202-457-3942 (office) or 301-585-5519 (home), or Herb Linnen, 202-457-3933 (office) or 202-333-9162 (home), both of AT&T/ CO: AT&T Universal Card Services Corp. ST: Florida IN: FIN SU: MR-AW -- FL004 -- 4050 11/13/91 15:06 EST
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|Date:||Nov 13, 1991|
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