Posts Tagged credit card future

Credit Card Fees To Watch Out For Going Forward

May 26th, 2009

feesfutureWhile the new credit card laws will prohibit a number of old fees and billing practices that have left consumers worse for wear, they haven’t put a complete lockdown on the way credit card companies can take advantage of you.  In fact, you can bet that they’re already looking forward to recouping much of the losses the new rules will generate by tacking on new fees and other premiums.

Need a quick review of what credit card companies can no longer do?  Under the new law, the following practices are no longer allowed:

1. Over-the-limit fees
2. Double-cycle billing
3. Interest rate hikes on old balances (unless the customer is 60 days late)
4. Charges on online payments

While that may not sound like much, those few changes represent a large chunk of how credit card companies turn up such huge profits from the use of their cards.  Going forward, you should probably look out for the following fees which they may or may not begin charging to make up for the deficit:

1. Fees for checking your balance (like some bank ATMs do)
2. Annual fees for cards that used to carry no annual fees
3. Rewards programs enrollment (it may be a longshot, but I can imagine issuers charging for enrollment into their rewards programs)
4. Across-the-board interest rate hike for future purchases (which is allowed under the new law, with no cap)
5. Shorter grace periods (to maximize the interest)
6. No more 0% promotional offers

Sucks, right?  Personally, I can’t imagine credit card companies responding any way else.  They’ve been in business for a long time because they manage to adapt.  It’s too bad that they usually do it with us on the receiving end of the negative repercussions.