Beware Of New Credit Card Fees Part 1 In A Two Part Article

Just when you thought you had this credit card thing figured out, along comes the Obama Administration's new rules that banks must abide by in order to "protect consumers". The intentions of our elected officials with this law were good. However, in our capitalistic society, with thousands of intelligent and creative professionals working on behalf of the financial services industry, it did not take long for new types of credit card fees to be introduced. Companies such as Citigroup, JP Morgan Chase and Discover have invented ways to make up for lost revenue from the Credit Card Act.

After the Credit Card Act became law, there was a period of time that banks were given in order to implement some of the new provisions, including the rule requiring credit card issuers to give customers 45 days warning of a change in terms (like a rate or fee increase). During this time, the industry's median annual fee (half above and half below) on bank credit cards increased 18% to $59 between July 2009 and March 2010. At credit unions, annual fees surged 67% to $25. During the same period, the median cash advance and balance transfer fees were jacked up by 33%, according to a study from Pew Charitable Trusts, a nonpartisan research group.

New Credit Card Fee Types
Professional Cards
Some banks are launching a product type called professional cards. These act like business credit cards (which are not covered by the Credit Card Act) but can have terms similar to consumer cards. Tens of millions of professional card offers have been mailed to consumers in 2010. Shopping for a credit card that is a good fit for your credit profile and spending habits is made easier with services now available which help consumers to compare offers on credit cards.

Late Fees
The new credit card law states that if a creditor does not receive or accept payments on weekends or holidays, then the due date is extended to the next business day. This is intended to prevent consumers being stuck with exorbitant late fees when bills are due on a non business day. In the past, Bank of America would allow payment due dates such as Christmas Day! Good luck trying to make that payment on time if you have not make the payment prior to the due date. Now, some banks are adjusting their payment acceptance policy to accept payments seven days a week. Pretty tricky since there is no mail delivery on Sunday and your bill is still due; so how do you pay it? Check to see if you can pay it online and be credited on the same day.