Got Perfect Credit? You Could Be Charged For It!

[dkf]

Bank Of America, Citigroup First To Try Out Idea, Which Will Undoubtedly Alienate Many Who Follow The Rules
Timeline: U.S. Credit Crunch & Financial Failures
View Market Summaries & Leading Stock Changes
By ALEXIS CHRISTOFOROUS, CBS 2 HD News
NEW YORK (CBS) ―



Loraine Mullen-Kress carries a Bank of America credit card and religiously pays off her balance.

"Flawless credit," she boasted.

Yet now, her good credit habits could cost her. Earlier this month Bank of America started notifying customers like Mullen-Kress that they will be charged a new annual fee of $29 to $99.

"There is a big segment of their population that they will have never made money on, which is people who pay their bills on time every month," said Ben Woolsey, Director of Consumer Research at CreditCards.com.

Bank of America said in a statement: "At this point we're testing the fee on a very small number of accounts and haven't made any final decisions." Citigroup is also trying out an annual fee with some card holders, and analysts expect more banks to follow their lead.

The banks are starting to charge fees to reliable customers in response to a slew of new credit card industry regulations that will limit when banks can hike interest rates. Cardholders who get a new annual fee notice in the mail will be in a no-win situation.

http://wcbstv.com/consumer/credit.card.fees.2.1272124.html

[fortyfeetunder]

1. All the more reason to dump these cards and do without...

What a mess! Like no one escapes without paying.

[onehandle]

2. I know that story is dated today, but it's actually been posted here several times.

For several weeks. That's a local TV station. Always a day late and a dollar short.

Not your fault.

[dkf]

4. Oh I'm sure it comes up all the time.

Banks want to charge people for something...anything. If its not a punishment for bad habits, its punishment for good habits. They charge us for taking out cash, for writing checks, for wiring funds, for travelers checks, for cashing checks. They no longer pay us diddly squat to use our savings to make loans. Why is it so difficult and costly for we the people to handle our own money? I don't know why our wages can't simply go on to cards or cell phones that don't funnel through the banks. I mean I do know why...because our entire system depends on banks being able to use savings to lend. But we ought to be able to opt out. Especially when banks lend irresponsibly.

[lpbk2713]

3. Her first big mistake

... is having anything to do with Bank of America.

[dkf]

5. She needs a credit union.

[marybourg]

6. I'd be willing to pay $30/yr to one credit card company

for the convenience of using their card as a charge card for all my purchases large and small for the whole month, then writing only once check/month just as I do now, for free, and in in fact get back about $150/year. I don't have a cell phone or cable tv or caller ID, because I don't see any value in any of those, but $30/year for the convenience of a charge card, yes.

[napi21]

7. Never made money on???? BS! They make lots on every transaction from the

merchant fees! Don't give me the BS about not making any $$. They don't make as MUCH $$ as someone who carries a balance, but they make money and don't lose a penny! They should only WISH they had more customers ,ike those. They are the ones who pay the recurring expenses of the co. and there's is no risk! Stupid idiots. I happen to be one of those customers, and I charge everything simply for the end of the year statement. Lets me know exactly where all my money is spent. Maybe they shouldn;t have given out CC;s to EVERYONE for the last several years without caring what their credit risk was and they wouldn't be in the spot they're in!

[ejpoeta]

8. the current system of credit score using credit history should not be allowed then.

because people keep cards they have had for a long time because of the credit history. so these folks with good credit are being extorted it sounds like so they can keep their great credit. if they cancel the card then there goes their credit score because of the credit history hit. it's bullshit!

[MadHound]

9. Cut up your cards,

I've never had one, have great credit, and don't have to worry about shit like this. Hit these corporations where they hurt, cut up your cards and don't go back.

[a la izquierda]

10. I have the opposite of perfect credit...

though taking steps to fix the problems (for one thing, I'll graduate next year with my PhD).

But my husband and I have thought long and hard, and I think we're each closing all cards but one (he has 3 cards, I have 2).

[Bonhomme Richard]

11. "never made money on" Bullshit

They make money on them, 2 - 4%, every time they use the card. That is what the retailer pays the credit company.

[sendero]

12. "never made any money on"...

... is factually incorrect. When you buy something with a credit card that costs $100 the merchant that sold it to you gets about $198. The bank is keeping some of the difference and MC/Visa is keeping some.

They aren't making AS MUCH money as they are from folks who are innumerate and paying usurious rates, but then again the bank takes very little risk with the paygo customers.

Citi raised my rate to 29.9% and that frosts me but then I never pay interest to anybody. But if they try the annual fee crap I will cancel.

[old mark]

13. We recently paid off and disposed of ALL our credit cards except the ones

we each have from our credit union, linked to out accounts there.

Our credit rating has gone down in the last month because we are not using "real" credit cards, even though our income has gone up.

I get several wonderful credit card offers per week - running aroudn 15% - and I'm amazed at the control these companies have over many people's lives.

I hate them and won't have any more, ever.

mark