Bank credit card fees keep going up »
Posted By engineer 9 months, 1 week ago in Business & FinanceA growing number of banks are raising credit card fees or rolling out new fees to offset record delinquencies and rising charge-offs.
Wells Fargo (WFC) has increased late fees and cash-advance fees. Chase (JPM) has put a $120 yearly fee on some cards with low interest rates. And American Express (AXP) raised its late fee for some business cards.
Overall, issuers will reap a record $20.5 billion in penalty fees in 2009, Hammer estimates. Last year, penalty fee income, including late and over-limit fees, rose 5% to $19 billion.
In recent months, many issuers have raised interest rates for borrowers even as the Federal Reserve has cut rates. They're doing so ahead of a federal regulation that takes effect next year, curtailing their ability to raise rates on existing credit card debt, says Bill Hardekopf, CEO of LowCards.com.
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engineer
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My background is Biomedical engineering with an MBA As you know from all my comments where I almost stand politically. I have loads of ...
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UnusualSuspect9 months, 1 week ago
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I'll tell ya, it's awful what they're doing.
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I've have my one MasterCard for years (CitiBank), andy my previous rate had been about 11.8%. I've got excellent credit, and never missed a payment or sent a statement in late, and have always paid it off in full every month. The rate is now 21%. It's doubled. Unbelievable!
And there's not much you can do about it. You can try calling them and make your case...you certainly don't want to cancel your card...that hurts your credit rating.
They have us all in a vise...so I'm trying to use it less, and trying to use more cash in transactions. -
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LegalBob9 months, 1 week ago
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I only use my debit card, gave all the others back or just don't use 'em any longer. And that goes for dept store cc's as well. If you pay off your cc's at the end of the month then what's the point of having one? Online purchases, use PayPal.
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Skeptic9 months, 1 week ago
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Much of the problem is that anyone can get a credit card. It may be an "urban legend," but I have heard of children, and at least one tale of a family pet, being issued cards.
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I don't know if it is a solution or not, but if it were forbidden for the card companies to charge the merchant a percentage of the cost of a credit purchase, then maybe the card companies would be less inclined to make offers to persons obviously unable to otherwise receive credit. A reasonable debit card charge may be acceptable since, as far as I know, a debit purchase is backed by cash immediately available. -
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Justice4All9 months, 1 week ago
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Fees have to be raised so that banks can keep paying million dollar bonuses.
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I added up all the fees I pay for checking, stock brokerage, savings, credit cards etc and it's a lot. Makes me wonder how these people can be losing money. -
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Mikunited9 months, 1 week ago
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Again we pay for the banks poor performance.
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If they lend money,or give credit cards to people who have no way to pay for them,why should good customers suffer.The banks and other company's,who issue credit cards,that keep their rates stable,or even lower them,will be in a win/win situation.Firstly,they will keep their own customers,secondly,they'll attract customers from companies that are increasing the cost of their products.
There needs to be regulations, that won't allow companies to change,or even add new charges,once agreements have been signed,at least within a given time.The only caveat being if interest rates rise. It's like buying a pair of jeans for $100,then 3 months later the shop billing you for an extra $25.Banks treat their customers really poorly,almost as if they are their enemies.It's time when normal customers,are treated with respect. -
prophyporcritesComment removed: Spammer, Hard Banned
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sonofreasonComment removed: Hard Banned
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coolrayfruge9 months, 1 week ago
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I've learned not to deal with banks.loan companys, IRS,credit card companys,Sears.
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They are a bunch of crooks n scammers.
I believe this recession is a carefully plotted sceam to rob the people of any rights we have.
To make us comply to the New World Order. -
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