Okay, Banks Have Crossed The Line Into Bullshit Again

[Still Sensible]

USA Today says that Bank of America and Citibank--looking to squeeze some more blood before new rules go into effect--have invented yet another way to bilk more fees... this time from "good" customers.

...You may believe that your exemplary behavior shields you from unexpected credit card fees. Sadly, that is no longer the case.

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.

These fees are the credit card industry's response to credit card legislation that will, among other things, restrict credit card issuers' ability to raise interest rates on existing balances. Credit card issuers are looking for ways to raise income before the new rules take effect in February. During the first quarter, 27% of credit card offers included annual fees, up from 18% a year earlier, according to Synovate Mail Monitor, a credit card direct-mail tracking service.

http://www.usatoday.com/money/perfi/columnist/block/2009-10-19-bank-of-america-card-fee_N.htm

[AndyA]

1. People will stop using their cards and close accounts.

People who don't carry balances have nothing to lose, and will close the account. I know I will if any of mine do this.

Congress needs to clamp down on the financial industry. After last year's events, it's obvious they need extreme regulation and oversight. After all, they did nearly bring down the worldwide economy. There's got to be a penalty or two for that. :shrug:

[Warpy]

3. The people who are paying the penalty will be the good folks

who kept the card in a drawer for emergencies instead of charging it up and using their houses like ATMs, landing themselves in debt for the rest of their lives. If you're a debtor, you're a good customer.

The financial system in this country has gone completely mad.

[CountAllVotes]

4. I keep a card in the drawer for emergencies

it has a fairly large size of credit available on it but I never use it. I got a letter a week ago that said if I do not use this card within 30 days, they will close it out.

Needless to say I went out and bought a couple of things with it.

Who else will issue me a credit card with a credit line this big these days? NO ONE is who. They gotcha! :mad:

On edit: Recommend.

:dem: :kick:

[spinbaby]

6. I did exactly that

Closed down cards that wanted to charge an inactivity fee. It hurt my credit rating. You can't win this game.

[lildreamer316]

7. ..but the problem is, doing that hurts your credit rating.

Not that I personally think it would be something non-survivable; but some people really don't want to take the hit.

[abelenkpe]

13. I wouldn't really worry about that in today's

environment. With the amount of people defaulting, losing work, big businesses requiring bailouts. C'mon, those credit ratings are an antiquated part of a system now defunct. I'm sure in the next five years everything associated with the financial system will be re-written and re-evaluated. Including credit ratings, etc. It won't be long before some suit is questioned about all the loans given out over the past 15 years says we relied on credit ratings and someone from congress points out that didn't really paint a realistic picture of a person ability to repay. Because really they don't. And the system will be improved. Rainbows will appear. People will rejoice.

Then in 80 years we'll break it again.

[lildreamer316]

18. I actually agree with you

and certainly hope that is the direction we are going in..hopefully in a well-reasoned way. (What country am i living in again? Nevermind!). I don't have any cc at all; have not since ONE in the mid-90s with a $250 limit. My credit score is not in the basement; but is not wonderful either. I think that too much is based on one's score - it does need to be revamped.
I will be interesting to see how it plays out.

[Still Sensible]

14. Therein lies the "gotcha"

Suppose your circumstance is that you have to relocate to change jobs and that means selling your house and buying a new one at the same location. If you decide to close a couple of these accounts because of these ridiculous new fees, you could easily drop your credit score just enough that you won't be able to qualify for a loan (or will have to pay a higher rate) on a house in an new location. They've got you by the (fill in the blank).

[AndyA]

17. If the consumer closes the account with a zero balance, the hit is not that bad.

And isn't it still possible to add a note to your account advising why the account was closed? I would think closing a zero balance account due to the addition of a new $100 annual fee for just having it shows responsibility on the part of the account holder.

I don't think closing an account with a zero balance because of new fees should impact your credit rating in any way. If anything, it should improve it. This is why Congress must enact new regulations, and that should be one of them.

Congress needs to get off their sorry butts and start working FOR THE PEOPLE FOR A CHANGE!

[mike_c]

2. the irony is that politicians don't dare raise taxes, even on the rich...

...to raise revenue that's actually needed to provide services to everyone because the outcry over taxes sweeps them from office, but corporations routinely raise "fees" just to enhance their profit, and no one raises an eyebrow over it. It's their divine right to squeeze whatever profit they can from the public, but the public is effectively prevented from pooling resources for the public good.

[CrispyQ]

8. That is an excellent point that I hadn't thought of!

I will remember this when I hear some of my friends whine about possible tax increases.

:thumbsup:

[femrap]

5. Get a credit card from US Bank

HQed in Minneapolis. It's a Visa that gives funds to the American Indian Relief Council when you use it.

Please pay the monthly bill in full.

I had had a Citi credit card and had to get rid of it because they make me sick....I did a ton or research and finally found this one. And I have been pleased.

[CountAllVotes]

11. I have a US BANK credit card

and as soon as it is clear I plan to close it out. They sit on credits that are supposed to post to your account.

I found out the other day that the government made a deal with these banks and credit card companies that they are allowed to "sit" on your money for up to 30 days before giving it back to you. They have 30 days to play around with YOUR money.

Try calling up US BANK and ask them when your card closes. It is on a different day of every month and it doesn't tell you on the statement they mail to you when the card closes.

To hell with them and their bogus "confusion". :grr:

:kick: again.

[femrap]

20. So far I've received all

my credits in a timely fashion. And my closing date has remained the same day.

Does your card provide funds to the American Indian Relief Council? That's the one I have so I can't speak for other types.

Sorry to hear you're having bad luck with them.

[CountAllVotes]

21. Does your card provide funds to the American Indian Relief Council

Not that I am aware of. I wonder if it is the same card? USBANK.com?

[femrap]

23. It's US Bank HQed in

Minneapolis. I'm sure they offer a variety of different credit cards.

And yes, when I use the card, funds go to the American Indian Relief Council. This bank, last I read, was the 12th largest bank in the nation. I like the fact it isn't a NYC Bank.

[Romulox]

9. Here's the thing: let them charge what they want, then remove the taxpayer backstop.

:hi:

[abelenkpe]

10. This happened to me!

B of A took over a card I had with a different company last year. I had great credit, never carried a balance and always paid on time. They raised my interest rate to 24 percent, added a 75 dollar annual fee and a 35 dollar fee per month for NOT carrying a balance.

I immediately called them up and told them no thanks cancel the card.

The irony is that B of A is an insolvent lying sack of shit only still in business because of massive taxpayer bailout and being allowed by our government to mark to fantasy their assets rather than mark to market. So basically they are permitted to cook their books and squeeze customers with outrageous fees and penalties.

Honestly, why does anyone do business with any big bank versus a credit union?

[damntexdem]

12. That's no line -- it's an attractive goal.

And one that the banks all want to move beyond.

[AngryOldDem]

15. I'm a responsible customer, and I'm getting screwed.

That's what I get for paying off my bill in full every month.

Citibank made it clear that if you don't comply with the "Membership Fee" (in my case, $90 yearly, but I'm sure that will go up) you will be cancelled.

[Donnachaidh]

16. there goes the argument *I pay my bill off on time*

And I guess those 5% piddly paybacks will be gobbled up soon too.

Now there is NO good reason to keep *feeding the beast* bank credit cards. TEAR EM UP people!

[FarCenter]

19. Look around for a credit card from where you bank or have a brokerage account

The no-fee credit card there is less likely to be changed to have an annual fee.

[aint_no_life_nowhere]

22. If you don't use the card at all, you still get dinged with a fee?

I have several cards I never use and I never get statements. If they do this, I don't understand why the card company would charge anything if they don't even have to expend the time or effort to send me a statement. How do they justify billing me if they do no work?