A Press Release from Mr. Ralph Nader

     Press Release
     For Immediate Release
     Contact: Todd Larsen (202) 387-8034
     January 13, 1998 

     NADER CHALLENGES CHEVY CHASE BANK'S AVARICIOUS
     INTEREST RATES ON CREDIT CARDHOLDERS

     In a letter to B.F. Saul, CEO of Chevy Chase Bank, consumer advocate Ralph
     Nader challenged the bank's assessment of interest rates between 25% and 27.5%
     on select credit card holders. Nader criticized the high interest rates as being
     unjustifiable under any circumstances, and asked B.F. Saul, "How can you and
     Chevy Chase Bank, in good conscience, assess these outrageous rates upon
     cardholders?"

     Nader also criticized the rationale given by Chevy Chase Bank for raising cardholder
     rates and the manner in which higher rates are assessed.

     - Chevy Chase Bank has told affected cardholders that their interest rate increases
     are based on information in their credit reports. However, cardholders who called
     Chevy Chase Bank and made inquiries regarding the bank's justification for increasing
     their interest rate have not received a legitimate justification for an increase, nor were
     their rates lowered. Nader states, "your bank labels cardholders as "high risk" based
     on unspecified criteria. How can cardholders challenge an action that is based on
     secret criteria?"

     - Cardholders who have complained to Nader about Chevy Chase Bank's interest
     rate practices never missed a payment, never paid late and were even paying more
     than the monthly minimum on their balance.

     - Several cardholders state that they did not receive notice of the change in interest
     rates, or received notice after the rates went into affect.

     Nader comments that "contrary to Chevy Chase Bank's assertions, these cardholders
     are not credit risks, they are goldmines for Chevy Chase Bank to plunder."

     It appears that the real explanation for Chevy Chase Bank's increasing interest rates
     does not lie with the affected consumers but with the bank's own mismanagement.
     Nader noted that Chevy Chase Bank has recently experienced a high rate of
     charge-offs on its credit card accounts and subsequent declines in its profitability.
     Office of Thrift Supervision data reveal that Chevy Chase Bank's year-to-date
     charge-offs as of June 30, 1997 were 11.21%, compared to a charge-off rate of
     4.99% for all institutions, and that Chevy Chase Bank reported a net operating
     income to assets for the first six months of 1997 of -.53. Nader stated, "it appears
     that Chevy Chase Bank is assessing outrageous interest rates on cardholders in good
     standing to recoup the bank's losses from cardholders who defaulted." Nader labeled
     the practice as being unethical and noted that the losses experienced by Chevy Chase
     Bank should be born by investors.

     Chevy Chase Bank is not the only institution to assess outrageous rates on its
     cardholders. Advanta, Capital One Financial and Associates have also recently
     raised their rates for cardholders who are considered to be a risk. While banks
     across the country are raising their interest rates, Chevy Chase was the recipient of
     Nader's letter because he encountered a number of complaints regarding the
     institution and Chevy Chase Bank's interest rates are particularly high.

     Nader urged Chevy Chase CEO B.F. Saul to discontinue the imposition of excessive
     rates and encouraged B.F. Saul and Chevy Chase Bank to be the first bank to
     reverse course and lower its rates to a more acceptable level. Nader states, "the
     public will not tolerate the blatant profiteering of credit card issuing banks for long. If
     banks do not curb their outrageous practices on their own, public pressure may
     encourage Congress to cap interest rates for them."

     Nader has long been concerned with overcharges and deceptive practices that
     appear in bills consumers receive from financial institutions. His Bills Project, which
     tracks error, fraud and deception in billing has uncovered deceptive billing practices
     throughout the medical, financial, utility, retail and service industries. The Bills Project
     has solicited bills from consumers across the country over the past ten years and is
     currently producing a study of consumer misbilling to be issued soon.

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