New credit card fees on the horizon: report

then i'll cut the d@mn thing up and drop it in the garbage.
like smacking a blood-sucking mosquito off my arm.
time to boycott the loan-sharks.

The credit card companies continue to display how ignorant they in fact are. They have made significant blunders over time, easy credit, racing out to tie up customers, good or bad, increasing limits without being asked etc. Now they want to find ways to increase their profits and/or cover their past earnings by finding innovative ways of sticking it to the customer especially those who pay off their monthly balances. I wonder how many MBA's they've hired to figure out the proposals mentioned in the article. They all need to be horse whipped. Most of these cards are owned directly or indirectly by banking institutions who have created this disaster, NOW, they want to create another one. These ideas of theirs are guaranteed to explode. For example, for those card holders that pay off their monthly balances, as these customers begin to turn off the cards because the rewards are no longer worth it or there is no grace period they will begin using cash again because they can afford it. What the credit companies will lose is the retail charges they receive when the customer uses the card. Will they then resort to increasing the fees etc to cover those who have given up the cards. They should appreciate good customers not penalize them. In my mind there is only one way to the describe these companies and that is "STUPID". The first card that sends me any of those increases will be the first card shredded. Cash anyone! I'm sure the retailers will love it!

The Financial Industry needs to be regulated tightly. I am tired at being mislead by credit card companies. The idea that an unregulated market is stable has been relegated to myth particularly by the on going recession If the government does not regulate then they are not protecting me. Protecting their citizens is their job one.

Its time to outlaw these fees as they're highly unethical.

I use my credit card merely for convenience and not due to a financial need. It is not consumers like myself who will be hurt by these lowly tactics. My response will simply be to call the credit card company to close the account. They will lose the customers who rank in the highest credit scores and it will serve them right...they will no longer deserve our business. In any case, it will be better for the economy in general as the retailers will be strengthened by not having to fork over a portion of each sale to the credit card companies. The only losers will be the financial institutions holding the credit cards and unfortunately those who are in debt and have become slaves to the unethical credit card industry that has extended credit to those who cannot afford it. It is those people who I feel the government needs to assist be locking their interest rates and governing collection practices.

I feel bad for any person who is subject to these card-shark tactics. Like many of you, my first reaction will be to cancel the card. They can't charge you if you don't own their card.

Secondly, we must ALL protest any action that puts plastic ahead of cash instruments. Ya, it's been tried before. Until we have a supply of cash or cash equivalents that is just as cheap to access, we must defend all forms of cash, including the penny!

It makes one feel that the bailout money just saved the sorry hides of a few very greedy people on the backs of many gracious and generous ones. Governments have a place, but I can see how one could see the bailout as backfiring.

I suppose that these bonhead decisions by the banks further justify the need for their directors to pay huge obnoxious bonuses to their top executives so that they don't lose these "talented" (term used loosely) people.

Give it a rest people. You knew this was going to happen. If you have a free credit card and pay it off every month, they aren't making money off of you. Here's a lesson in capitalism: you try to make profits. Suck it up, we've had a free ride for too long and I'm surprised this didn't happen sooner.

This is absolutely ridiculous .
Everyone needs to wake up and go back to recieving their paycheck from the employer with no more direct deposits and start paying cash for every thing again .
Paying cash worked for how many thousands of years .............
Time to go back in time and recapture our lives

WELL SAID CARL!! I agree and repeat what he said. It's time banks rewarded good customers. It often looks like they want customers who default and require the most chasing to recover agreed upon payments. Lately, at the Royal Bank as long standing customers for 30 years we are offered a lessor GIC rate than if we go down the street to a new institution. Look after your customers or you'll be broke!

One thing that people have to remember is that these are fees that will be REPLACED. So we have already been paying these fees in other forms. So why is it that these companies will be boycotted for doing the same thing? I use my credit card every day, for everything. Even a $5 bag of milk, or a $2 chocolate bar. I get cash back at the end of the year, and I pay the balance off every month. I pay an annual fee, but I receive much more in my Cash Back incentive, then I pay. If they would like to stop doubling any manufacturers warranty on my electroincs purchases, or stop me from going to the "front of the line" for even tickets, thats fine. That happens maybe once a year. Now, as for paying with cash, if you do not have cold hard cash, I am sure that banks/retailers/interac will come up with new fees for people that start spending more so called "cash" Want to use your debit card for everything? Its going to start to cost you sooner or later, once the trends move to more debit transactions, or cash withdrawls, so will the fees. I am not happy with paying fees either, I hate it! I fight every "transaction fee" I ever see on my statements. But I do realize that these people are providing a service, and I do not have the means to set up my own bank, and create my own debit cards, and have that access be given to me anywhere in the world. This may be one service that we may have to be stuck paying a lot for. But seriously, if someone gave you all their money, would you want to give it back to them for free?
Petey

The consumer always pays anyways. Figure it out scholars... If c/card companies aren't making money off the consumer, then the rates for merchants will go up. Guess what? Do you think the merchants eat this fee? Nooooo, they will add it into the price of everything they sell. Either way, the c/card companies will continue to make their profits and the consumer will continue to pay for the use of the "free" card. Lmao. Duh.

to that person that said the credit card companies don,t make money off the people that pay their bills off every month,Idon,t think that statement is quite true.i run a bill on average of about 7000 a month which i pay off every month.What about the percentage paid by the store owners for these sales

We recently cancelled a credit card due to the ridiculous interest being charged. The person on the other end of the telephone asked why we would do this as we we paid it off every month and never carried a balance, so it did not cost us anytning anyway. We told them that was not the point. We were good customers, doing what they tell everyone they should do. These companies charge high rates becasue of "increased risk" yet low risk made no difference to the 19.9% rate being charged.
After phone call after phone call to lower our interst rate (they called us) and then be told we did not owe any money so could not qualify for a lower rate we told them to close the account. Less than 3 weeks after we closed the account we got a letter which offered a no fee card at 7.99% interest on purchases, balance transfers, all services. The funny thing is that if they had not harassed us with offers we did not qualify for we would still probably still have the card at 19.9%
These companies do not want to loose the fees they charge to the retailer when you use your card.
If you are a good customer make then negotiate.

SOM has a point. (To a point) Agreed that those that pay their bill upon receipt of statement are not
immediate "good" customers however those who can afford to pay by statement are likely big spenders and, thus, create fees paid by the merchant to the card company. The merchant has built in this cost so it could be said that no one loses. The card companies are wanting a bigger share, if only to cover the costs of their bailout. PIGS!

YES, Citi, Fifth Third Bancorp, Bank of America and Chase, good luck with your business. You get charged an intrest fee for amounts owing, as it should be. This is how credit works. If the company stated they will give you points while you use their card, then that is how they would like to run their company to profit on getting customers. I am asking people to post credit card companies who do not do this, so I may switch over.

I worked for CAPITAL ONE as an Escalations Manager for over two years. I will say people are going to be EXTREMELY ANGRY! there will be a huge loss in customers but they dont care, they want people to go into debt. Everyday thousands are applying for cards so it does not really matter who close's their accounts at all unless there was a MASSIVE up-roar of many customers doing the same at once showing them whose the REAL Boss is its not going to matter. But HINTS'' Threatin your card companies to close your accounts, get really angry, most times when we increased the percentage rates and fees on our cards Especially before the recession hit ( yes before the recession hit ) those who went all the way up the lader which was the department i worked in I we are able to stop those effects, we can lower your APR rate, and much more! I'll even try to find my old book and Post the HEAD OFFICE # which no one else is to EVER have.

What I am finding really interesting is that today I received a letter from one of my credit cards telling me that they do "random evaluations" of credit cards and have decided to lower my limit by $600 more dollars. A year ago my limit was $14,000, there has been no change in my employment, spending or payment habits and I haven't missed any payments. Now it's down to under $5000. Everytime I pay the card down by a few hundred (before it was thousand) dollars they cut my limit and then say I am at my limit. A couple of other cards had followed suit, saying that I am at my limit on a number of cards. I would not be at my limit if they hadn't lowered my limit - it's not my fault. I pay my bills. One of them even called me to tell me that I was over my limit (they increased the APR) so it was $5 over the limit and then stuck me with a $39 fee. Then the girl on the phone asked me if I was having any financial problems. I told her NO, the only problems I am having are with the stupidity of the cards I have. I can pay my bills and I asked her if I was a good customer. She said OH YES, I said well I'd hate to be a bad one because I am getting screwed for being a good customer. I am to the point where if they keep lowering my limits on my cards then I won't have any credit anyway. I am so tempted to tell them to stick it! And I noticed that now those checks that used to come in the mail for cash advances, they don't want you to have them anymore either. Come on Obama we need better credit card reform, some is better than nothing, I mean Bush could care less, but come on now, we need to stop them from sticking it to us.

Just get rid of the card. Pay your balance owing and get rid of the thing. Anyone ever heard of "visa debit" same thing but use your own money. I have just finished paying back 12000 on a card i was using to study. Learned my lesson!!! The problem is there is too many dumb people in the world, who are to ignorant to even understaqnd or care what these companies do!! As long as the credit keeps flowing.

I assume if you are reading this you are not a sheep!! Keep reading and stay informed!!

One word UNPLUG from the system.
For some that would be difficult, we all need dept to start off in life.
But at one point we can unplug a little at a time.
Power to the internet, every one cancel one card, I don’t think you need ten cards
in your wallet. One card times 400 million people in North America, let’s go a bit farther, cancel two cards
times 400 million people, 800 million cards cancelled!!
Believe me, they will back peddle real fast.
UNPLUG a bit , the system will adjust accordingly for our business.