CANADIAN IMPERIAL BANK LOWERING VISA RATES
<Canadian Imperial Bank of Commerce>
said it was lowering the interest rate on its Visa credit card
to 15.9 pct from 18.6 pct, effective with the May billing
statement.
    The bank said it was also halving its yearly Visa card user
fee to six dlrs, but would retain its 15 ct fee for each
transaction.
    A bank spokesman said the previously reported call by the
Canadian Parliament's finance committee on March 20 for a
substantial cut in credit card rates "was a factor" in the
move, but he would not elaborate.
    Canada's minister of state for finance Thomas Hockin had
threatened legislation to reduce the rates, which apply to
unpaid balances, if the financial institutions did not
voluntarily act.
    The Canadian Imperial Bank spokesman said "the bank card
market is a very competitive one and we have to move to stay
competitive."
    Canadian Imperial's new rates match those of <Toronto
Dominion Bank>, which lowered its rates before the finance
committee report.
    Canadian Imperial Bank added that cardholders will be
allowed to choose between the 15 ct transaction fee or the six
dlr yearly card fee.
    It will also eliminate the 50 ct minimum monthly
transaction fee, it said.
    Minister of State for Finance, Tom Hockin, said in the
House of Commons today he was "delighted" with the bank's cut
in its credit card rate.
    "I would hope retail stores and other financial
institutions will look to their rates as well," Hockin said
during the daily question period.
 Reuter
