New Credit Card Fees: Paying Off Your Balance Will Now Cost You

usatoday.com:

Starting next year, Bank of America will charge a small number of customers an annual fee, ranging from $29 to $99. The bank has characterized the fee as experimental. But card holders who have never carried a balance or paid late fees could be among those affected.

Citigroup, meanwhile, has started charging annual fees to card holders who don't put more than a specific amount on their cards, typically $2,400 a year. Other banks are charging inactivity fees if customers don't use their credit cards during a specific period of time. You heard that right: You could be spanked for staying out of debt.

Read the whole story: usatoday.com

Comments

[nurturingtouch]

Perhaps I am naive but I just got off the phone with a B of A rep (I am among those who pay of balances every month) and she swore that there would be no fee and I had her put a notation saying as much. I will hold B of A to this or else I am shopping for a new bank come next year. BTW she said she had been swamped with calls about this.

[widdles]

Looks like it is time to dump our credit cards altogether. Let the banks eat cake!

[Scarborian]

The reason the economy is in trouble is the banks. We, the people had to bail them out. The reason the US economy is taking longer than others to recover is that those same banks are screwing every available dollar out of their customers, the very people who are being counted on to go out and buy things to restart the economy.

If US banks are no longer interested in turning around the US economy then it's time rethink the system.

[SwingingFromCenter]

Another misleading headline from the worldwide leader in misleading headlines.

[widdles]

How is it misleading? Did you even bother to click on the link to read the ENTIRE article?

Pays to read all before commenting and inserting foot into mouth.

[SwingingFromCenter]

The headline implied they were getting fees for payin their cards, sort of like the fees associated with paying a loan off early. This is nothing of the sort.

[sueinmn]

Were blamed for having debt, then were blamed for not having debt. Guess its time to say to hell with all these banks!! I cant because I have too much debt but someday-so long banks. Never again!

[Imzadi]

Join a credit union and get one of their cards.

[sueinmn]

I have a credit union card. Its thru HSBC and they just now raised their rates.

[Imzadi]

OOH, I'm sorry to hear that. :-(

Mine is still honoring original terms.

[Tiggy]

Well I guess it is time to cut up that BOA card! If enough people do this, they will do away with that silly greedy fee.

[01202009]

You have to hand it to the Republicans. They have kept everybody so tied in knots over healthcare that the banks have been able to pillage with impunity.
I’m more and more convinced that Wall Street and Big Banking saw the crash coming and wanted it to happen while Bu$h was still in office so that they could get the taxpayer’s money flowing in their direction before the president’s inauguration. Am I the only one that finds it curious that this all crashed down two months before the election?

BTW, conservative economists are predicting another crash before the next election cycle. They’re telling their clients to go to cash as the market may drop as much as 40%. Then the GOP can blame President Obama, but it is really just another sham by those walking away with multi-million dollar bonuses. We are really being had!

Now that they’ve got what they wanted they are going to move heaven and earth to win back power and go merrily on their way. We cannot let this happen.

[ramper]

What are you talking about? The Dems are in power? Either they are easily fooled or they are just as bad as the Repubs. The truth is there is not really much difference between either party as they are slaves to the lobby group of their choice. Come over to the Independent side so you can attack both.

[widdles]

Then, by your definition, Independents are purists, right? You really think they are not crooked?

Boy, are you delusional.

[jesbillings]

Does it strike anyone else as obscene that closing a credit card lowers your credit score? The credit reporting companies have a lot to answer for.

[01202009]

Your are referring to Fair Isaac, and yes it does seem strange that these folks can do whatever they want. I'm all for putting FI out of business once and for all as there's no easy way to check your score or protest errors.

[hoobit]

I'm trying to remember when *I* gave *my* permission to *anyone* to collect (and sell) *my* credit information. And, you know what? I can't remember when that was...and yet collect (and sell) it, the 'big three reporting companies' do.

Of course, *I* can view ~for FREE~ the information they've each collected on *me*, but I'm allowed by each of them that privilege only ONCE per year. If I want to see *my* information any more frequently than that (like, maybe, would once a month be too much to ask?) they will gladly *sell* it to me. Seriously?

Mighty nice of them, I say - they collect *my* information to sell to *others* and will even sell it back to *me*? WTF? Yeah, miiiiiiiiiighty nice of them.

Methinks there's something just a tad screwy, here....no?

[passthesewords]

It's Banking 101, loan interest income down, increase fees, increase fees.. Ray Charles could have seen this coming. Surprised not really, stockholder's have to be paid, bonuses received.

[NapaNose]

"hecka of a job, there, you sack o sh*t, Barney Frank". . to and and the other thieves on your financial responsibility task force. . you make a few recommendations that benefit the consumer but then make them effective months and years down the road so the miserable banks can stick it to the consumer before the laws take place.

First, we bail out the banks. Then they raise the rates on credit card into the 19-25% range. Then they charge you to keep the cards or ruin your credit if choose to cancel them. . . Heck of job, there, Barney.

to the barricades. . .

[Icantbelieveher]

19-25% range! That's good. I have a card that raised my rate to 29.99%. I paid it off and closed it. Which is what I will do to any card that charges me not to use it!

[JohnnyPDX]

Since when does my whole life now center around my credit score. Is this the number that will be scribed on our foreheads by way of the bible.

[MadAppraiser]

As long as less than 5% of the American population control the American economy, and the cost of living continues to increase at an accelerated rate in relation to mainstream American employment salaries. DEBT PRODUCTION in the private and public sectors are the best money generator ever devised by America's financial institutions, OTHER THAN OUTRIGHT THEFT!

[larmarch5]

Is 666 considered a perfect credit score?

[Albertmum]

Of course, they don't make any money off us responsible people. I had a visa that required I use it once a year, I canceled it. And sometimes I don't pay the balance in full just so they can ding me for a few dollars in interest. So far I don't have any annual fees and my interest rates are still low.

[000Jade000]

My bank jacked the interest rate on a card I took out with them up to 29.99%. It was a card that I was talked into getting, and thought would be nice to have in case I ever needed it. i never used it. After the bank saw that I didn't have a balance, they sent me another letter to close my account out. They said it was in "both of our interests." A month later, they sent me another card offer. Idiots.

[Topsailsman]

Don't you just love the insanity? I'm switching over to a credit union and saying bye bye to the blo0dsuckers.

[Icantbelieveher]

Same exact thing happened to me. I used one card to pay my monthly bills every month and paid it off every month. They raised the rate to 29.99% and then closed the account, saying I was a credit risk. The next day I got a letter in the mail that I was approved for the student loan for my son's college based on my excellent credit history!

Go figure!

[passthesewords]

Yet!!!!

[Albertmum]

True, yet... I have no problem with closing any credit card account. I had a Bank of America only because it used to be an LLBean visa. I had a massive credit limit, I could have bought a car on it. After reading about their 'fair practices' I immediately closed the account. Amazingly enough, they were one of the companies that didn't hassle me. I hate it when they transfer you to an account closing specialist who tries to talk you out of it!

[KIVPossum]

Actually I don't have a problem with these type fees as long as they are nominal. It does cost the bank something to issue the card and maintain the account whether it is used or not. Their expectation is you will use it and they will make a profit. If you don't they still have a cost overhead.

The problem is the outrageous rates on balances, the short-cycle billing, delayed payment credits, absurd overlimit fees and late fees.

[Topsailsman]

Yes, the problem is all the things you listed. But the big problem is that they will stop at nothing to claw money away from anyone dealing with them to get bigger and bigger profits for Wall Street and the corporate CEO's. And until effective regulation is enforced, we are their pawns.

[KIVPossum]

Agreed with that. They spend a lot of effort to find new ways to bleed people. Earning an honest buck is good. I doubt anyone denies a company making a profit. Bleeding people is immoral.

Thank the lord it's been 20 years since I had a balance on a credit card. I do keep one since sometimes a debit card is not advisable and cash is a problem (it's a pain in the butt when you come home from a trip and have 7 currencies in your pocket). I use it once a year, never more than a grand or two, and it is paid off in two weeks. I don't object to them charging me a nominal fee for the maintenance and convenience.

However, if I was to carry a balance I would object to a 30% rate, short cycle billing, and holding my payment for 24 hours so they could hit me with a late charge.

Don't get me on debit cards. My Moldova bank's debit is good only in country, so I must use my American debit on trips. the way they calculate currency exchange is out of the fantasy books, and they add in a 7.50$ charge for every withdrawal. A lot of places I go the ATMs have a 100$ max. It chaps my ass to be hit for 120$ to get 100.

[desertman]

Cash still works I'm told.

[Topsailsman]

Try to rent a car with cash. Try to reserve a hotel room with cash. Pay cash for an airline ticket and you get a ticket to the "terr0rist watch" list. Garbage service? They won't even take a check without charging extra.

[Icantbelieveher]

That's the beauty of a debit card that is also a VISA. There's no way to tell if it's a credit card or if it comes right out of your bank account.

[CaptainHowdy2]

I paid off my only credit card a few months ago. I now use a debit card for those needs.