Government charge card undergoes charges - information on fees, etc - Brief Article

Army Reserve Magazine, Summer, 2001 by Eileen Harley

WASHINGTON-Bank of America travel charge card policies have undergone a change following a new contract between Bank of America and the Department of Defense.

Bank card users will now be assessed a late fee of $29 after the account goes past 75 calendar days delinquent, and monthly thereafter until past due balance is paid in full.

Cash and credit lines have also been decreased: Standard account limits are $250 cash and $2,500 charges (previously $500 and $4,500). Restricted account limits are $125 for cash and $1,000 charges (previously $200 and $1,050). These limits will be phased in over a transition period, and may be increased by the APC, with supervisory approval, if needed to meet mission requirements.

In the future, a salary-offset procedure will be established to collect undisputed amounts due to the card company from a traveler's pay account. Bank of America will not seek or accept "credit loss fees" for any accounts

recovered under salary offset.

Other changes such as a $20 fee for FedEx delivery of cards will be assessed. The fee is reimbursable on the travel settlement voucher if the expense is authorized or approved by the order-issuing official.

Split disbursement will become the default payment vehicle for travel settlements. If the traveler does not specify an amount to be sent to the traveler, the entire travel settlement will be sent to the card company and the bankcard company will refund any overpayment to the traveler.

Fees that will now be charged to bankcard users include: a $29 returned check fee and the ATM cash advance fee increases to $2 or 3%, whichever is greater (previously, fee was 1.9% of cash withdrawal).