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U.S. BANK UNVEILS LOWER-RATE CREDIT CARD

 U.S. BANK UNVEILS LOWER-RATE CREDIT CARD
 PORTLAND, Ore., Aug. 10 /PRNewswire/ -- U.S. Bank today unveiled


plans to offer credit card customers low variable interest rates, reducing its gold card rate to 13.4 percent and classic card rate to 15.4 percent.
 "With the recent drop in market rates, we want to pass on the savings to our customers," said Richard W. Eichhorn, executive vice president of U.S. Bank. "Unlike many other low-interest-rate alternatives, U.S. Bank's offer carries no restrictions. Any current cardholder or new applicant is eligible for a lower rate with the same qualification criteria, membership benefits and low annual fees we've always offered."
 The new credit-card rate program does not affect the pricing of special programs, including those with affinity groups.
 In August, U.S. Bank's existing credit-card customers currently at higher rates will receive a notice enabling them to choose either a low quarterly variable rate (based on a formula linked to the prime rate) or a fixed rate equal to the card's current annual percentage rate (APR). The new rate program, which applies to customers' existing balances as well as new purchases, takes effect Sept. 19.
 The new rate program benefits U.S. Bank's classic- and gold-card customers. The program does not affect the pricing of special programs for "affinity" groups (including universities and auto clubs), which already pass on comparable savings to their members.
 The new credit-card rate program replaces U.S. Bank's current tiered-rate structure, which bases credit-card rates on the number of account relationships a customer has.
 "The tiered-rate program has been popular with a number of our customers," said Eichhorn. "Now, with lower market rates showing stability, we are in a position to pass along the savings offer to all of our customers."
 Eichhorn added that existing card customers benefit from this change, no matter how low their interest rate is presently on the tiered system. "By switching to a variable rate, most of our customers can lower their rates from 3 to 3-1/2 percent, and both existing and future customers will receive U.S. Bank's low-interest-rate card without restrictions, such as minimum usage, account relationship or tenure."
 Customers who apply for and are issued U.S. Bank credit cards after the rate conversion in September will receive a variable rate currently at 13.4 percent on the gold card and 15.4 percent on the classic card.
 Eichhorn noted that all customers will receive information on the changes in late August. Others who have questions about U.S. Bank's new credit-card offerings may contact a customer-service representative toll-free at 800-445-9934. U.S. Bank's credit-card customer service center is open Monday through Thursday 8 a.m. to 5:30 p.m., and Friday, 8 a.m. to 6 p.m. PDT.
 U.S. Bancorp (NASDAQ: USBC) is the largest financial services company headquartered in the Northwest, with assets of $19.3 billion as of June 30, 1992. Subsidiaries include U.S. Bank of Oregon; U.S. Bank of Washington; and U.S. Bank of California.
 -0- 8/10/92
 /CONTACT: Mary Ruble of U.S. Bancorp, 503-275-6200/
 (USBC) CO: U.S. Bancorp ST: Oregon IN: FIN SU: PDT


SC-JH -- SE005 -- 8547 08/10/92 13:27 EDT
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Publication:PR Newswire
Date:Aug 10, 1992
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