We’re all screwed!

October 27, 2009 · 9 comments

Have you heard about all the crazy new fees the big banks are tacking on to credit cards? I hadn’t until I watched The Today Show. Usually I don’t pay much attention to credit card fees. Why? Because I have never gotten one. I have ALWAYS paid my balance in full each month. Paying your balance guarantees no fees….right? WRONG!

We are all pretty much screwed. Those who can’t afford to pay their balance in full have been getting screwed for a while, but now everyone’s gonna be hurting. Here’s just a few of the sneaky fees…

Initiating or increasing annual fees (aka: We hate you fee)…

Bank of America is testing out new annual fees of $29 to $99 on certain customers. How’d BoA decide who they were gonna hit with the new fees? They aren’t telling. Hear this Bank of America, you increase my annual fee and I will punch you in the face and cancel my credit card faster than you can say “I smell like pantyhose”

Inactivity fees (aka: We really hate you fee)….

WTF? This one honestly dropped my jaw. I have a few credit cards that are really old, but that I never use. I keep the accounts open because my history with them gives my credit score a healthy bump. Ya really have three options here: Pay the inactivity fee, use the card (assuming you haven’t cut it up…oops), or cancel it and damage your credit score.

Not Enough Activity Fees (aka: The bend over fee)…

I said it once before, but WTF!? I feel like the banks must have had a giant how-to-piss-off-our-customers board, with about 50 different ridiculous fees included. The CEO’s then blindfold themselves and throw a dart at the board, thus creating the “not enough activity fee”. Essentially if you don’t charge at least “X” dollars on your card each month, or year (depending on the terms), you are gonna get penalized with a fee. Again a problem for me, considering I really only use one credit card, even though I have three in my name. Do I really want to be carrying balances on multiple cards, to avoid a stupid fee?

This is absolute insanity. I’m damned if I do and damned if I don’t. I can either fork up the cash and pay these crazy new fees, or I can say “Funk You, Bank of America I’m out like a fat kid playing dodge ball” thus hurting my credit score. Even though I’m at the peak of my financial game, this could end up being a lose-lose situation. It’s time for this ninja to start shopping around with local credit unions. I’m done with the big bank drama.

You can see the Today Show clip here to get the quick scoop on what I just ranted about.

{ 9 comments }

1 SS4BC

Yeah, I heard about this on NPR yesterday. Essentially just a way to get people who pay off their balances each month an "opportunity" to give credit card companies more money.

I really, really hope it doesn't get adopted…

2 Vanessa (Last Night's Leftovers)

I hadn't heard about this. Extremely uncool…

3 Jessie

wow – super lame. that junk better not hit my bank!

4 Jin6655321

I have a BOA card, and it's my only credit card (eeep!!!!). So far, there hasn't been any changes in terms but I'm waiting in fear. I pay my card off in full so they can raise my interest rate to triple digits for all I care but I will punch someone in the face if they lower my limit or start charging an annual fee. Annual fee for what? Allowing YOU to make money off of MY purchases from the merchants?

"Pay up or take a giant hit on your credit score"- That's practically extortion.

5 Michelle

Those who pay balances off every month are called "dead beats" in CC company parlance…So here comes the revenue stream from the deadbeat crowd. My husband's oldest card is a BOA (formerly NationsBank – hello, 1980s!) that he's had for 25 years…they sent him notification that he'd have a $49/year membership fee beginning his next anniversary (January). He's P-O'd and wants to punch BOA in the face. How does 25 year history of good payments = $49 fee? He's carried balances occassionally, like the $6000 boat motor he HAD to buy 2 years ago – paid it off in 4 mons, so they did make some money off him. Sucks to think he may lose that longest-lived credit line on his bureau

6 Jeff

You may want to check out this post at debtfreeadventure. He was wondering what to do with his cards, and he closed them. http://www.debtfreeadventure.com/2009/10/credit-cards-close-em-shred-em-forget-em/

Same with Baker @ Manvsdebt….he was tired of the credit card companies and the way they treat people, so he's going to cancel his as well called "ill show you where to stick your rewards" http://manvsdebt.com/rewards/

Either way, If someone I had known for 25 years (like michelle) treated me the way bank of america treated them, i'd tell them to shove it, just on principle alone.

7 RainyDaySaver

Inactivity/not-enough-activity fees are ridiculous. And I've been burned before for not having enough activity on a card — Chase closed both of my credit card accounts, bastards.

8 JRizzle82

I actually just paid off my BOA CC, and cancelled it, so I'm glad I don't have to deal with these new silly fees.

My wife and I have a CC account with a local credit union, and it's great. No hassles, no ridiculous fees, and we pay the card off every month.

9 Jake Stichler

There you go hating on fat people again… when will you ever learn?

:-D

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